Indonesia's Ministry of Energy and Mineral Resources (ESDM) is targeting the official launch of B50 biodiesel in July 2026. The fuel, which consists of a blend of 50% diesel and 50% palm oil-based biodiesel, is scheduled to be introduced directly by the President.

Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, stated that based on the latest information received, the official launch of B50 is planned to be conducted by the President on July 1, 2026.

Laode explained that the nationwide implementation of B50 will be carried out gradually after the existing B40 fuel supply has been fully distributed. As a result, a transition period of approximately three months will be required following the official launch before B50 becomes widely available across the country.

"At the national level, there will naturally be an adjustment period. The remaining B40 inventory must first be used up, and the transition is expected to take up to three months before B50 is fully implemented," Laode said.

What about the price?

Laode said that the official price of B50 has not yet been determined. However, he emphasized that its pricing mechanism will follow the same formula currently applied to diesel fuel.

"The calculation follows the diesel pricing mechanism, just like conventional diesel. There is no special difference. The price will follow the monthly diesel pricing policy, and the formula currently in use remains the same as before," he explained.

As stipulated, the retail fuel pricing mechanism is regulated under the Minister of Energy and Mineral Resources Regulation No. 10 of 2024 concerning the Calculation of Retail Fuel Prices.

According to Article 3 of the regulation:

1. The retail price of subsidized diesel fuel (gas oil) at the delivery point is calculated on a per-liter basis using a formula consisting of the base price plus Value Added Tax (VAT), minus the applicable subsidy, and plus the Motor Vehicle Fuel Tax (PBBKB).
2. The base price consists of procurement costs, distribution expenses, storage costs, and a profit margin.
3. The monthly base price calculation uses the average market index price together with the rupiah exchange rate against the U.S. dollar, based on Bank Indonesia's buying rate from the 25th of the previous month through the 24th of the current month to determine the price for the following month.
4. The subsidy amount follows the allocation specified in the State Budget (APBN) and any subsequent revisions.
5. The Motor Vehicle Fuel Tax (PBBKB) is set at 5%.
6. The resulting retail fuel price is rounded down to the nearest Rp1.00 per liter.