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Bahlil Optimistic Indonesia Will Be Free from Diesel Fuel Imports by 2026

by Krystal

Indonesia is on track to eliminate diesel fuel imports by 2026, with plans to introduce a 50 percent biodiesel blend (B50), according to Energy and Mineral Resources Minister Bahlil Lahadalia.

Speaking at a press conference on January 3, 2025, Bahlil expressed confidence that the government’s target would be met. “The B40 biodiesel blend will be in place by January 1, 2025, and we are preparing for B50 in 2026. If this goes as planned, Indonesia will no longer need to import diesel fuel by that year. This is a key part of our national energy security strategy, as directed by the President,” he said.

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The B40 program in 2025 will increase the biodiesel quota to 15.6 million kiloliters (KL), a 20 percent rise compared to the 12.98 million KL achieved with the B35 blend in 2024. “This increase is an important step in reducing our reliance on diesel fuel imports,” Bahlil added.

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State-owned PT Pertamina has expressed its readiness to support the B40 program. Company spokesperson Fadjar Djoko Santoso confirmed that two of Pertamina’s refineries—Plaju Refinery Unit III in Palembang and Kasim Refinery Unit in Papua—are prepared to produce the B40 blend, having previously produced the B35 blend.

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However, Pertamina is awaiting the legal framework for the B40 program’s rollout. “There is typically a transition period between the issuance of regulations and the availability of the product for sale. In the meantime, Pertamina is working to ensure its production facilities are ready to meet the program’s targets,” Fadjar said.

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Bahlil also emphasized that the move toward biodiesel would help strengthen Indonesia’s energy security while promoting environmental sustainability by reducing carbon emissions. The government is focusing on improving the quality of biodiesel, particularly by reducing the water content in the fuel mixture.

“Currently, the water content in biodiesel is at 320 parts per million (ppm), but we are taking steps to improve the fuel’s quality by enhancing the specifications of transport vessels. Our goal is to reduce the water content to the minimum,” Bahlil explained.

The shift to B50 in 2026 is seen as a critical step toward achieving energy security and reducing the country’s dependence on fossil fuels.

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