Ecobiz.asia — The Indonesian government has set the allocation of biodiesel for 2026 at 15.65 million kiloliters (kL) as part of its efforts to strengthen national energy security and reduce dependence on imported diesel fuel.
The allocation is stipulated in Minister of Energy and Mineral Resources Decree No. 439.K/EK.01/MEM.E/2025, which regulates the designation of fuel oil companies and biodiesel producers, as well as the volume of biodiesel allocated for blending with diesel fuel in 2026.
Director General of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, said the total allocation is divided into 7.45 million kL for the Public Service Obligation (PSO) sector and 8.19 million kL for the non-PSO sector.
“The implementation of the 2026 biodiesel mandatory program will be supported by 32 fuel oil companies and 26 biodiesel producers appointed by the government, while maintaining the PSO incentive scheme as applied in previous years,” Eniya said in Jakarta on Tuesday (Dec. 23, 2025).
She said the allocation is a strategic measure to cut diesel imports, strengthen national energy independence, increase the utilization of domestic energy resources, and support Indonesia’s greenhouse gas emission reduction targets.
According to the ministry’s estimates, the 2026 biodiesel program is expected to generate Rp21.8 trillion in added value for the downstream palm oil industry, save Rp139 trillion in foreign exchange by reducing diesel imports, create more than 1.9 million jobs, and cut greenhouse gas emissions by around 41.5 million tons of CO₂ equivalent.
To ensure effective implementation of the B40 biodiesel mandate, the government will strengthen governance and oversight through performance-based allocation, strict quality control, monitoring of distribution points, and verification of volume and quality by independent surveyors.
The government also said it remains open to adjusting the biodiesel mandate in the future should there be changes in national energy needs or strategic policy directions. ***
