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Indonesia to End Diesel Imports from July 2026 as B50 Biofuel Policy Takes Effect

Indonesia

Surabaya, April 20, 2026 – The Europe Today: Indonesia will cease importing diesel fuel starting July 1, 2026, as part of its transition to the B50 biofuel policy, aimed at strengthening national energy independence, Agriculture Minister Andi Amran Sulaiman announced on Sunday.

Speaking at the Sepuluh Nopember Institute of Technology in Surabaya, the minister said the country will fully implement B50 — a fuel blend comprising 50 percent diesel and 50 percent crude palm oil (CPO).

“We will no longer import diesel. Per July 1, 2026, we will stop diesel imports as B50 comes into effect,” Sulaiman stated.

He said the policy is part of broader government efforts to enhance energy security by utilizing domestically produced palm oil as an alternative energy source.

Highlighting the versatility of palm oil, Sulaiman noted that it can be processed into multiple fuel types, including diesel, gasoline, and ethanol, with development efforts 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.

The minister further revealed that the government is preparing to collaborate with state-owned plantation company PTPN IV to develop palm oil-based gasoline on a pilot scale, with plans to expand to industrial-scale production if successful.

“If this succeeds, we will expand it on a large scale. Indonesia’s future is bright,” he added.

During his visit, Sulaiman also reviewed technological innovations at the institute, including an electric tractor designed to be more efficient and cost-effective. The Agriculture Ministry has ordered 10 units for trial use.

“The tractors developed here cost half the usual price. They are efficient, as they do not use diesel but electricity, making them highly economical,” he said.