B35 Starts February 1 as Distribution Readiness Faces Test

Jakarta — Indonesia’s B35 biodiesel mandate takes effect on 1 February 2023, replacing the B30 blend used in January and raising the palm-based biodiesel share in diesel fuel to 35 percent. The launch marks an implementation test for supply, blending, distribution, and supporting infrastructure, not only a change in the mandated blend level.

The policy is based on ESDM Ministerial Decree No. 295.K/EK.01/MEM.E/2022 on the biodiesel blending stages for diesel fuel under the Plantation Fund Management Agency (BPDP) financing framework. It is also supported by Directorate General of EBTKE Decree No. 205.K/EK.05/DJE/2022, which sets the fuel companies, biofuel producers, and biodiesel allocation for the January–December 2023 period.

One-month transition from B30

The Ministry of Energy and Mineral Resources (ESDM) said B30 remained in force during January 2023, before the blend was raised to B35 from 1 February. That sequence gave fuel and biofuel companies a short transition window to prepare blending operations, logistics, quality checks, and distribution arrangements for a higher biodiesel share.

The 2023 biodiesel allocation was set at 13.14 million kL, around 19 percent higher than the 11.02 million kL allocation in 2022. For the start of B35, however, the allocation figure is only part of the story. The practical issue is whether the additional B100 requirement, projected at about 1.9 million kL, can be absorbed by the supply chain while keeping diesel-blend distribution stable for users.

ESDM also projected that B35 could save around USD10.75 billion in foreign exchange and cut greenhouse-gas emissions by about 34.9 million tCO2e. Those figures are government projections, so actual results will depend on delivered blending volumes, energy prices, and year-round distribution performance.

Technical readiness under watch

Before implementation, the government said it had considered crude palm oil supply, biofuel production capacity, and the required product specifications. Readiness among fuel companies was also assessed, including supply, distribution, and supporting infrastructure for a wider national rollout.

Testing was central to the decision. ESDM said the higher biodiesel blend had gone through laboratory work and road testing. For B35, the technical review included the effect of the blend on diesel engine filtration systems. BPDP reported that Filter Blocking Tendency and Filter Rig Test results did not indicate filter blocking, and the recommendation was that B35 had no significant effect after improvements to the biodiesel specification used in the blend.

The B40 road tests conducted from July to the end of December 2022 also informed the policy pathway. The ministry said the tests generally showed good performance. In that context, B35 is positioned as an interim step: above B30, but still below the later B40 target that requires further technical evaluation, supply readiness, and policy decisions.

What it means for diesel users

For diesel users, the move to B35 means every litre of diesel contains a larger biodiesel component. The government did not announce a new daily-use procedure for consumers, but its emphasis on filtration tests shows the operational areas being watched most closely: fuel cleanliness, biodiesel quality, and filter performance in diesel engines.

The mandate also raises the coordination burden across biofuel producers, fuel suppliers, terminals, and regulators. If distribution proceeds as planned, B35 will show that Indonesia can scale its palm-based biodiesel mandate in stages. If field problems emerge, the likely evaluation points will be quality control, logistics, and infrastructure compatibility, rather than the headline national allocation alone.

With B35 in force from 1 February 2023, Indonesia’s biodiesel programme moves into a more demanding implementation phase. Its success will be measured by steady distribution, compliance with specifications, and service continuity for diesel users, while the government keeps preparing the technical basis for the next step toward B40.