No: 001.Pers/04/SJI/2025
To strengthen national energy security and reduce reliance on imported fuel, the Indonesian Ministry of Energy and Mineral Resources (ESDM) has officially mandated the implementation of B40 biodiesel across the country, effective January 1, 2025.
The policy requires a 40% blend of palm oil-based biodiesel with petroleum diesel, marking a continued progression from the earlier B30 mandate. This shift is expected to reduce diesel imports, stimulate domestic palm oil consumption, and contribute to Indonesia’s broader renewable energy and climate targets.
Minister of Energy and Mineral Resources, Arifin Tasrif, emphasized that the B40 policy reflects the government’s commitment to sustainable energy development and national resilience. He added that the initiative will help reduce the burden on foreign exchange reserves and support the palm oil supply chain — a vital economic sector for Indonesia.
The mandate applies to both public and industrial fuel users, with necessary infrastructure and supply chain readiness already coordinated through relevant agencies and biodiesel producers.
This development follows successful road trials and evaluations conducted throughout 2023 and 2024, ensuring the technical and economic feasibility of B40 implementation at scale.