Indonesia Allocates 16.7 Million kL of B50 Biodiesel to 26 Producers for 2026, 8.2 Million kL to PSO

Jakarta — Indonesia's domestic biodiesel market now hinges on one number: the volume allocation the government sets for producers. According to Argus Media (29 July 2026), the Ministry of Energy and Mineral Resources (ESDM) allocated a total of 16.7 million kilolitres (kL) of biodiesel to 26 domestic producers for 2026 to run the B50 mandate, up from the 15.6 million kL set early in the year for the B40 target. Supply data as of 31 August show the programme is running, but not yet at full coverage.

PSO and non-PSO split

Argus reported that the 16.7 million kL allocation is divided into two segments.

• PSO (subsidised): 8.2 million kL for public transport, public services, agriculture and micro-enterprises.
• Non-PSO: 8.5 million kL for commercial industry, private transport, mining, manufacturing and power generation.

For the PSO segment, the price gap between biodiesel and fossil diesel is covered by the Plantation Fund Management Agency (BPDP, formerly BPDPKS) from levies on palm oil exports and derivatives. Payments go to producers after they deliver biodiesel to fuel distributors (BU BBM) at the regular diesel price. The latest funding scheme is discussed in Pendanaan B50: Insentif BPDP 2026 Direvisi Jadi Rp32 Triliun (in Indonesian).

Late allocation, shifting numbers

Argus noted that producers waited almost all of July for the new allocation figure, even though the B50 mandate took effect at the start of the month. The 16.7 million kL figure is also lower than the plan Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), presented to House of Representatives Commission XII on 4 June 2026: 17,602,168 kL (up 12.5% from the initial allocation of about 15.64 million kL), according to Bloomberg Technoz (5 June 2026). The same report put actual supply through April 2026 at 4,617,467 kL, or 29.51% of the initial allocation.

On 20 July 2026, Eniya said total B50 volume was expected at 16–18 million kL and that the quota could be revised periodically. The government will assess production and distribution readiness over the next six months, Eniya said after the Indonesia Palm Oil Research Week event, as reported by Bloomberg Technoz. The article did not detail the revision mechanism or its criteria.

Supply as of 31 August

ESDM recorded total B50 supply at about 75–80% as of 31 August 2026, while Pertamina fuel stations were at around 90%, according to Post-Pro (1 September 2026), citing Eniya. The government targets all fuel stations selling B50 on 1 October 2026 and will oversee distribution; Eniya said another evaluation would follow about a month later. According to Hukumonline (9 July 2026), Minister Bahlil said the 2026 allocation was set to fit the transition period, with full B50 implementation starting in January 2027.

For FAME producers, the allocation determines the volume they can produce and be paid for through the rest of the year. Because the figure can be revised, market certainty depends on the outcome of that evaluation. The latest FAME requirement range and supply data are also covered in B50 Now at All Fuel Stations; Indonesia Studies B60.