News Capsule: Experts Raise Concerns Over Indonesia's B50 Biodiesel Program
07-Jul-2026 12:50 PM
News Capsule: Experts Raise Concerns Over Indonesia's B50 Biodiesel Program
★ Ahead of the implementation of Indonesia's B50 biodiesel mandate, experts have emphasized the need for a robust methanol supply, strict quality control, and a reliable supply chain. They warned that rolling out the program without adequate preparation could pose significant risks.
★ While the B50 program is expected to reduce diesel imports, it could increase Indonesia's dependence on methanol imports. Experts also stressed the importance of regular monitoring of fuel quality, palm oil availability, and pricing. They suggested that if supply or quality disruptions occur, the mandatory blending rate should be temporarily reduced to B40 or B45.
The B50 program is expected to increase domestic palm oil consumption, potentially reducing exportable supplies and providing support to global palm oil prices.