Indonesia Scraps Plans for B50 Biodiesel Mandate to Maintain B40 Blend in 2026
Indonesia has cancelled its mandatory B50 biodiesel plan for 2026 due to funding and technical issues. This shift to maintain B40 reduces palm oil demand.
Insights:
Indonesia 
IDannounced on January 14, 2026, that it has scrapped its plans for a mandatory B50 grade palm oil-based diesel in 2026. The government will instead maintain the current B40 mandate, which requires a 40 percent biodiesel blend, citing significant technical and funding concerns. Deputy Energy and Mineral Resources Minister Yuliot Tanjung yuliot tanjungexplained that the decision follows a comprehensive review of the national biodiesel programme and its associated infrastructure needs. This policy reversal has immediate implications for the global Crude Palm Oil market, as it removes a major source of anticipated demand.
IDannounced on January 14, 2026, that it has scrapped its plans for a mandatory B50 grade palm oil-based diesel in 2026. The government will instead maintain the current B40 mandate, which requires a 40 percent biodiesel blend, citing significant technical and funding concerns. Deputy Energy and Mineral Resources Minister Yuliot Tanjung yuliot tanjungexplained that the decision follows a comprehensive review of the national biodiesel programme and its associated infrastructure needs. This policy reversal has immediate implications for the global Crude Palm Oil market, as it removes a major source of anticipated demand.
