Indonesia plans to end diesel imports by 2026 with launch of B50 biodiesel programme

Jakarta, Oct 9 (IANS) Indonesia plans to stop importing diesel fuel starting in the second half of 2026 following the implementation of the country's 50 per cent biodiesel (B50) mandate, Energy and Mineral Resources Minister Bahlil Lahadalia said on Thursday.

Bahlil confirmed that the government is currently conducting the fourth and final phase of road tests for B50 biodiesel, which are expected to be completed within six to eight months. The trials involve ship engines, trains, heavy machinery, and others, Xinhua News Agency reported.

"If everything goes smoothly and we decide to use B50, we will no longer import diesel fuel in the second half of 2026," Bahlil told reporters in Jakarta.

The B50 programme, a blend of 50 percent crude palm oil-based biofuel and 50 percent conventional diesel, is part of Indonesia's long-term strategy to boost energy independence and reduce reliance on fossil fuels. The policy aligns with the current B40 mandate, which has reached 10 million kiloliters, representing 64.7 percent of the 2025 target of 15.6 million kiloliters.

According to the ministry, the nationwide implementation of B40 has already saved the country about 9.3 billion US dollars in foreign exchange.

On October 9, an official from the Ministry of Energy and Mineral Resources said Indonesia will gradually reduce the use of coal for electricity generation from the current share of 55 per cent to around 30 percent by 2050, shifting toward cleaner and renewable energy sources.

Siti Sumilah Rita Susilawati, secretary of the Directorate General of Minerals and Coal, said that coal remains a major contributor to the country's electricity supply.

"For now, around 55 per cent of our power generation still relies on coal. This share will be gradually reduced and replaced with new and renewable energy sources," Rita said.

She noted that coal would still play a role in Indonesia's energy mix by 2050, but state-owned electricity company PT Perusahaan Listrik Negara (PLN) has been instructed to adopt advanced technologies such as ultra-supercritical systems that can significantly cut carbon dioxide emissions.

Rita acknowledged that Indonesia's target of achieving net-zero emissions by 2060 cannot be met solely by reducing fossil fuel use. The government, she said, is prioritizing energy blending and technological innovation to drive down emissions.

"Reducing fossil fuel consumption, for example, in the smelter sector, is a good starting point. We have directed smelters to use new and renewable energy as their main energy source," she added.

Indonesia is pursuing an 8-per cent economic growth target by 2029, while advancing its transition toward a low-carbon economy and achieving net-zero emissions by 2060.

--IANS

akl/as