Indonesia To Stop Diesel Imports From July 1, As Palm Oil B50 Shift Takes Effect
Indonesia plans to stop diesel imports from July 2026 as it rolls out B50 biofuel (50% palm oil blend). The move aims to boost energy independence, expand palm-based fuels, and reduce reliance on imports, positioning palm oil as a key pillar of the country’s future energy strategy.
Indonesia said it will stop importing diesel fuel starting July 1, 2026, in line with the implementation of B50, a biofuel blend consisting of 50 percent diesel and 50 percent crude palm oil (CPO).
“We will no longer import diesel. Per July 1, 2026, we will stop (diesel import), as B50 comes into effect,” Minister of Agriculture Andi Amran Sulaiman stated at the Sepuluh Nopember Institute of Technology (ITS) here on Sunday.
According to him, the move is part of the government’s efforts to strengthen national energy independence by utilizing palm oil as an alternative fuel.
He explained that palm oil can be processed not only into diesel but also into gasoline and ethanol, whose development is currently being accelerated.“This is Indonesia’s future energy, as it is sourced from palm oil. Palm oil can become diesel, and it can also become gasoline,” he said.
In addition, the government is also preparing cooperation with state-owned plantation firm PTPN IV to develop palm oil-based gasoline on a small scale before expanding it into a large-scale industry.
“If this succeeds, we will expand it on a large scale. Indonesia’s future is bright,” he said.
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Source : Business Today
