Indonesia Signals Later Start to Higher Biodiesel Blending Plan

Various sample fuels used in road tests of 40% palm-based biodiesel in Dieng, Central Java, Indonesia.

Photographer: Dimas Ardian/Bloomberg

Indonesia signaled it would be boosting its mandatory biodiesel blending program sometime later in 2026, an energy official said, a move likely to ease immediate concerns over how tight palm oil supplies have been in the world’s top grower in recent years.

Preparations remain on track to increase fuel blending from 40% to 50% after January, said Director General for New and Renewable Energy, Eniya Listiani Dewi. She added that safety tests that take six to eight months to carry out, had not yet been scheduled.