Jakarta – The government is optimistic that the mandatory biodiesel programme in 2026 will become one of the main pillars of national energy security while reducing the burden of fuel imports. With an allocation of more than 15.6 million kilolitres, the implementation of biodiesel next year is projected to save the country up to Rp139 trillion in foreign exchange from reduced diesel imports.
The Ministry of Energy and Mineral Resources (MEMR) has set the volume of biodiesel-type Biofuel (BBN) for 2026 at 15,646,372 kilolitres. Of this amount, 7,454,600 kilolitres are allocated for the Public Service Obligation (PSO) scheme, while 8,191,772 kilolitres are allocated for the non-PSO sector.
The Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listyani, explained that the stipulation had been outlined in Minister of Energy and Mineral Resources Decree No. 439.K/EK.01/MEM. E/2025 concerning the Determination of Petroleum Fuel Business Entities and Biofuel Business Entities of the Biodiesel Type, as well as the Allocation of Biofuel Volume for the Blending of Petroleum Fuel of the Diesel Oil Type in 2026.
“The implementation of the mandatory biodiesel programme in 2026 will be supported by the synergy of 32 petroleum fuel companies and 26 biofuel companies appointed by the government, while maintaining the incentive scheme for the PSO sector as stipulated in the previous year,” said Eniya on Tuesday, 23 December.
According to Eniya, the biodiesel allocation policy is not only aimed at meeting domestic energy needs but also serves as a strategic step in reducing Indonesia’s dependence on diesel imports. In addition, this programme is considered to be in line with the agenda of strengthening national energy security and independence, while increasing the utilisation of domestic plant-based energy resources.
The government estimates that the implementation of biodiesel in 2026 will have a significant economic impact. From an industrial perspective, this programme is projected to drive downstream growth and the national palm oil value chain, with an increase in the added value of crude palm oil (CPO) to biodiesel reaching around Rp21.8 trillion.
On the macroeconomic side, reducing diesel imports through biodiesel blending is estimated to generate foreign exchange savings of up to Rp139 trillion. In addition, this programme also has the potential to absorb more than 1.9 million workers throughout the supply chain, from the upstream plantation sector to the processing and distribution industries.
From an environmental perspective, the implementation of mandatory biodiesel in 2026 is estimated to reduce greenhouse gas emissions by around 41.5 million tonnes of carbon dioxide equivalent (CO2e). The government believes that this achievement will contribute significantly to the national emission reduction target while strengthening the position of biodiesel as an energy transition instrument in the transport sector.
With the support of fuel and biofuel companies and the continuation of the incentive scheme, the government hopes that the 2026 biodiesel programme can run optimally and consistently, while providing balanced economic, environmental and social benefits for Indonesia. (Hartatik)
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