Jakarta, INTI - Secretary General of the Indonesian Biofuel Producers Association (Aprobi), Ernest Gunawan, announced that the allocation for the mandatory 40 percent biodiesel (B40) program will increase to 15.646 million kiloliters in 2026 to further strengthen Indonesia’s low-carbon energy transition.
Ernest explained that the increase for 2026 is relatively marginal, around 30,000 kiloliters higher than the 2025 allocation of 15.616 million kiloliters.
“Where the mandatory B40 allocation this year (2026) has only increased by around 30,000 kiloliters. The total becomes 15.646 million kiloliters, nearly 15.65 million kiloliters,” he said during a media iftar gathering in Jakarta.
He emphasized that although the increase is slight, it reflects the government’s consistent commitment to sustaining the national biodiesel program.
The event was also attended by the Indonesian Oleochemical Companies Association (Apolin) and the Indonesian Vegetable Oil Industry Association (GIMNI).
The 15.646 million kiloliter allocation for 2026 consists of 7.4 million kiloliters for the public service obligation (PSO) sector and 8.1 million kiloliters for the non-PSO sector as part of the national biodiesel distribution scheme.
2025 Realization Surpasses Government Target
Implementation of the mandatory B40 program throughout 2025 reached 95.67 percent of the total national allocation.
This achievement was recorded after realization and data reconciliation with the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM) through the end of December 2025.
“We can prove this, where based on the data we obtained after realization and reconciliation with EBTKE, from the total allocation of 15.616 million kiloliters in 2025 through December, around 14.94 million kiloliters were absorbed for domestic distribution, meaning nearly 95.67 percent,” he said.
Of the total 15.616 million kiloliters allocated in 2025, domestic distribution absorbed 14.94 million kiloliters, comprising approximately 6.9 million kiloliters for the PSO sector and around 8 million kiloliters for the non-PSO sector.
Throughout 2025, there were no biodiesel exports, as all production was directed toward meeting national domestic energy needs.
Biodiesel distribution was carried out through 80 delivery points, consisting of 30 points to Pertamina and 50 points to non-Pertamina business entities.
The 95.67 percent achievement surpassed the success parameter set by the Directorate General of EBTKE at the Ministry of Energy and Mineral Resources, which established a minimum threshold of 95 percent as an indicator of program effectiveness.
Economic and Environmental Impact of B40
The implementation of B40 throughout 2025 generated economic benefits, including foreign exchange savings of approximately Rp133.3 trillion and an increase in crude palm oil (CPO) added value of around Rp20.9 trillion.
The program also supported employment for up to 1.8 million workers and reduced greenhouse gas emissions by approximately 39.66 million tons of CO2 equivalent.
“Perhaps we all already know from the statement of the Ministry of Energy and Mineral Resources that this year (2026), we will remain at B40,” Ernest said.
Conclusion
Indonesia’s 2026 B40 allocation signals policy continuity rather than expansion, but the strong 2025 realization rate demonstrates program effectiveness. With significant economic savings, job creation, and emissions reductions, the biodiesel mandate remains a key pillar of the country’s low-carbon energy transition strategy.
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