Indonesia B40 Biodiesel
Indonesia B40 biodiesel rollout is moving forward, with a government team set to monitor its distribution and confirm the 40% palm oil blend compliance.
The country has been increasing its biofuel mix for years. The latest jump, from 35% to 40%, became official in 2025. The Energy Ministry says the new team will check if fuel producers follow the rules.
Indonesia B40 Biodiesel Rollout: New Team to Monitor Compliance
Eniya Listiani Dewi, a top official in renewable energy, said inspections would begin next week. “We will deploy a team to monitor the B40 program on the ground,” she told reporters in Jakarta. Officials and representatives from the palm oil funding agency BPDPKS will conduct the checks.
Inspectors will look at fuel density, water content, and color. The goal is to confirm that distributed biodiesel meets the B40 standard.
Eniya denied that problems had triggered the move. “No, there were no issues before. But since the B40 program has no incentives, we want to stay ahead,” she explained.
Indonesia B40 Biodiesel Rollout: Why B40 Matters
Indonesia leads the world in palm oil production. Expanding biodiesel use helps cut diesel imports and boosts green energy. The government estimates that B40 could save up to Rp 147.5 trillion ($9 billion) in foreign exchange this year.
The biodiesel industry is watching closely. More domestic palm oil use means fewer exports. That could affect global prices and supply.
Full Rollout Expected Soon
The government planned to launch B40 on January 1, but delays pushed full implementation to March. Some distributors needed time to adjust. Officials say there will be no further extensions.
“I think everybody is making efforts to meet it,” Eniya said.
Indonesia has allocated 15.6 million kiloliters of biodiesel for 2025. That’s up from 13 million last year. The jump may lead to higher subsidies for palm oil-based diesel.
To fund this, the government plans to raise the export levy on crude palm oil. The current 7.5% rate may rise to 10%. The final decision is still in process.
Eddy Abdurrachman, head of the state plantation fund, says the government aims to collect Rp 25 trillion from palm oil levies this year. The target remains unchanged from 2024.
The Indonesia B40 Biodiesel program is just one part of Indonesia’s broader push toward renewable energy. By increasing the use of biodiesel, the country aims to reduce its reliance on imported fossil fuels and cut carbon emissions. As palm oil production increases to meet this demand, there will likely be more pressure on the government to balance the needs of local energy requirements with the environmental concerns tied to palm oil farming.
How this plays out will be crucial for both Indonesia’s energy future and its role in the global palm oil market.
What’s Next?
Indonesia is betting big on biofuels. The B40 mandate strengthens energy security and supports palm oil farmers. But global markets will react. A shift in palm oil supply could impact prices worldwide.
For now, officials are focused on making sure B40 fuel meets standards. The new watchdog will be out in the field soon, checking that everything runs smoothly.
