APROBI: B50 Needs 2 Million kL of Extra Biodiesel Capacity as Demand Heads to 19.5 Million kL

Jakarta — The Indonesian Biofuel Producers Association (APROBI) estimates that the national biodiesel industry needs about 2 million kilolitres (kL) of additional installed capacity to meet the B50 mandate. APROBI deputy chair for research and technology Jummy Bismar Martua Sinaga said biodiesel demand under B50 is projected at 19.5 million kL, so total capacity should ideally rise to 24 million kL from the current level of about 22 million kL.

He made the remarks at a national seminar titled "Implementation of the B50 Biodiesel Programme: Opportunities, Challenges and National Strategy", hosted by Investortrust at Hotel Aryaduta, Jakarta, on Thursday, 30 April 2026. At the same forum, Pertamina Patra Niaga said several of its terminals will need larger FAME storage tanks.

22 million kL installed, only about 81% effective

According to Jummy, as reported by Investortrust, national installed capacity is indeed around 22 million kL, but effective production capability is only about 81% because of stricter technology standards. On that basis, he concluded total capacity needs to reach 24 million kL, an increase of roughly 2 million kL.

APROBI has also mapped a short-term supply gap. For the rest of the second half of 2026, after B50 starts in July, there is a shortfall of around 940,000 kL that the association is studying with the government. Jummy is optimistic this year's gap can be covered using existing spare capacity. The bigger challenge is expected in January 2027, when demand is projected to rise by almost 4.2 million kL, equivalent to about 3.1–3.2 million tonnes of additional CPO feedstock.

On timing, Jummy said building a new stand-alone plant takes more than two years, while integrated companies can expand faster on land they already hold.

APROBI's own capacity figures have varied. In April 2025, APROBI secretary general Ernest Gunawan put members' installed capacity at about 24 million kL with 80–85% utilisation due to downtime and maintenance, giving real capacity of around 20 million kL, Fortune Indonesia reported. The difference likely reflects timing and the scope of the calculation. A list of producers is available in our biodiesel producer directory.

Pertamina prepares bigger FAME tanks

Downstream, Pertamina Patra Niaga VP Business Development & Subsidiary Sigit Setiawan said the company is mapping all its facilities and infrastructure for B50. Some locations need new storage tanks, and existing tanks must be enlarged because FAME's share of the blend is rising, Investortrust reported.

Land is the main constraint. Some terminals have no room to expand, and adjacent land cannot always be bought. Sigit cited the Baubau terminal in Sulawesi as an example of a site with very limited capacity. He also said only about 35 of Pertamina's main terminals can receive FAME directly from biodiesel producers. Terminals in remote areas face distribution access problems, so biodiesel must be delivered to them already blended.

The government's economic case

At the same forum, Ferry Irawan, Deputy for Coordination of State-Owned Enterprise Management and Business Development at the Coordinating Ministry for Economic Affairs, presented the government's claimed benefits of the biodiesel programme. Foreign-exchange savings from lower fuel imports were put at IDR 133.3 trillion in 2025 and projected at IDR 139.8 trillion in 2026. Budget efficiency was put at a minimum of IDR 48 trillion, while added value for CPO is expected to rise from IDR 20.92 trillion in 2025 to IDR 21.94 trillion in 2026.

Indicator	Figure	Stated by
B50 biodiesel demand	19.5 million kL	APROBI (projection)
Current installed capacity	~22 million kL	APROBI
Effective capacity	~81%	APROBI
Total capacity required	24 million kL	APROBI
Shortfall, H2 2026	~940,000 kL	APROBI
Additional demand, January 2027	~4.2 million kL	APROBI (projection)