Indonesia Delays B50 Biodiesel Mandate Amid Price Concerns

Indonesia has postponed the rollout of its B50 biodiesel mandate, originally set for the second half of 2026, due to concerns over crude oil and palm oil price differences. The country will continue with its current B40 mandate while testing engine compatibility.

Insights:
Indonesia, the world's largest producer of palm oil, has announced a delay in the implementation of its planned B50 biodiesel mandate, originally targeted for the second half of 2026. The decision, declared by Airlangga Hartarto airlangga hartarto, the Coordinating Minister of Economic Affairs, hinges on the cost-effectiveness of subsidies, which are contingent on the price gap between Crude Oil and Crude Palm Oil .
Airlangga Hartarto, Indonesia's chief economic affairs minister, gestures while speaking during an interview with Reuters at his office in Jakarta, Indonesia, on August 26, 2025. REUTERS/Willy Kurniawan
Airlangga Hartarto, Indonesia's chief economic affairs minister, gestures while speaking during an interview with Reuters at his office in Jakarta, Indonesia, on August 26, 2025. REUTERS/Willy Kurniawan
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