Key insights and market outlook
The Indonesian Ministry of Energy and Mineral Resources (ESDM) will conduct a nationwide B50 biodiesel road test starting December 3, 2025, across six sectors: automotive, agriculture, mining, railways, shipping, and power generation. This crucial step precedes the mandatory B50 implementation in 2026. The test aims to assess the feasibility of using biodiesel blends containing 50% biofuel in various industries.
The Indonesian Ministry of Energy and Mineral Resources (ESDM) is set to commence a comprehensive B50 biodiesel road test on December 3, 2025. This large-scale testing program will be conducted simultaneously across six major sectors: automotive, agricultural machinery, mining equipment, railway locomotives, maritime vessels, and power generation gensets. The B50 biodiesel blend, containing 50% biofuel derived from renewable sources, is being tested for its performance, compatibility, and potential challenges in various applications.
The upcoming road test represents a critical step towards mandatory B50 adoption in 2026. This initiative aligns with Indonesia's broader strategy to reduce dependence on fossil fuels and promote renewable energy sources. By mandating higher biodiesel blends, the government aims to lower greenhouse gas emissions from the transportation and energy sectors while supporting the agricultural industry through increased demand for palm oil and other feedstocks used in biodiesel production.
The B50 road test will provide valuable data on the technical feasibility of using higher biodiesel blends in existing infrastructure and equipment. Key areas of focus likely include engine performance, fuel system compatibility, and potential maintenance implications. From an economic perspective, the test will help assess the cost implications for various industries and inform potential adjustments to the implementation roadmap.
B50 Biodiesel Road Test Commencement
Biodiesel Mandate Implementation