Indonesia Sets Sights on Gradual Transition to B100 Biodiesel for Securing Energy Needs

The Indonesian government is actively developing a detailed concept to produce biodiesel up to the B100 level as part of its broader strategy for energy self-sufficiency, according to the several media reports. This was recently announced by Minister of Energy and Mineral Resources Bahlil Lahadalia during a press conference held in Jakarta. Minister Lahadalia stated, "We are preparing concepts up to B100, but this will be done gradually. We will report the developments in due time." This gradual approach underscores the government’s intent to create a sustainable transition toward higher biodiesel blends, ultimately leading to a B100 biodiesel product that uses 100 percent fatty acid methyl esters (FAME) derived from renewable sources like palm oil.

Currently, Indonesia requires the use of B35 biodiesel, which combines 35 percent FAME from palm oil with 65 percent conventional diesel fuel. This B35 program officially began on February 1, 2023, and is part of Indonesia’s phased approach to reduce dependence on fossil fuels. The successful implementation of B35 is considered a foundational step for Indonesia's renewable energy targets, particularly in the transportation sector, where biodiesel use can significantly curb greenhouse gas emissions.

Building on the success of B35, the government is preparing to advance to B40 biodiesel, which will increase the proportion of palm oil FAME to 40 percent. This B40 biodiesel is scheduled for a mandatory rollout on January 1, 2025. According to Minister Lahadalia, "God willing, it has been tested and is ready for implementation by next January," signaling that the necessary testing and evaluations have already been completed. The B40 program is an important milestone that reflects Indonesia’s commitment to achieving cleaner energy while supporting the domestic palm oil industry, a vital sector for the country’s economy and workforce.

Director General of New, Renewable Energy, and Energy Conservation, Eniya Listiani Dewi, emphasized the ministry's readiness for the B40 launch, noting that preparations are well underway to ensure a smooth transition. Dewi explained that the government is focused on building the necessary infrastructure to support this initiative, including enhancements to ports, shipping facilities, and logistics networks. These improvements aim to ensure a reliable supply chain for biodiesel distribution across Indonesia. She added that these infrastructure preparations are expected to be finalized by December, allowing for a seamless shift to the B40 mandate.

In parallel to the B40 program, the government is exploring the feasibility of even higher biodiesel blends, including B50, which would use 50 percent palm oil FAME. Dewi mentioned that a technical study has already been conducted to evaluate engine performance and other operational aspects of B50 biodiesel, demonstrating the government’s proactive approach in understanding the implications of higher biodiesel blends on vehicle engines and fuel systems. Additionally, a trial of B50 biodiesel has been carried out by Minister of Agriculture Andi Amran Sulaiman in South Kalimantan, further assessing its viability in real-world conditions.

Through these initiatives, Indonesia aims to reduce its dependence on imported fossil fuels, enhance energy security, and strengthen the resilience of its energy supply. The progressive increase in biodiesel blending ratios not only supports the domestic palm oil industry but also aligns with Indonesia’s environmental goals, helping the country lower emissions and meet its climate targets. The government’s roadmap for biodiesel, from B35 to potentially B100, represents a comprehensive approach to achieving sustainable energy independence while promoting economic and environmental stability.