Indonesia to end diesel imports from 2026

VTV.vn - From 2026, Indonesia will use B50 biofuel, ending diesel imports and saving more than 10 billion USD per year.

The Indonesian government will begin mandatory use of B50 biofuel (diesel blended with 50% vegetable oil - FAME) from 2026, thereby completely ending diesel imports.

According to Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia, the B50 program is a strategic step to achieve national energy sovereignty and move towards zero diesel imports. Switching to B50 will not only help Indonesia reduce its dependence on imports, but also maximize the potential of domestic palm oil, strengthen farmers’ livelihoods and ensure energy security.

During the 2020-2025 period, the use of biofuels helped Indonesia save 40.71 billion USD. The deployment of B50 from 2026 is forecast to bring about an additional savings of about 10.84 billion USD per year.

Currently, Indonesia still imports about 4.9 million kiloliters of diesel, equivalent to 10.58% of total domestic demand (1 kiloliter = 1,000 liters). When B50 is fully operational, this import volume will be completely replaced by domestic supply.

To meet the demand for B50 fuel, the government aims to increase FAME production capacity from 15.6 million kiloliters in 2025 to 20.1 million kiloliters in 2026.

According to the Ministry of Energy and Mineral Resources, this policy not only strengthens energy security but also creates economic spillover effects. The palm oil and biofuel industry is expected to attract about 2.5 million workers in plantations and 19,000 workers in processing plants.

The mandatory B50 policy is part of the government’s vision to create a new economic order based on efficient use of domestic resources and renewable energy development, and is also a testament to Indonesia’s commitment to building a sustainable, resilient and energy-independent economy, said Minister Bahlil.

Source: https://vtv.vn/indonesia-se-cham-dut-nhap-khau-dau-diesel-tu-nam-2026-100251011070922086.htm