Glossary · Policy
Biodiesel mandate
The biodiesel mandate is the government requirement that diesel sold domestically be blended with a minimum percentage of biodiesel, now 50% (B50) since 1 July 2026.
The programme began with Energy Ministry Regulation 32/2008 and was raised step by step from B10 (2013) to B50 (2026). The current umbrella regulation is Regulation 4/2025 on the business and use of biofuels, plus the phasing decree 113.K/EK.05/MEM.E/2026.
The aims are to cut diesel imports, absorb domestic palm oil and reduce emissions. The price gap between biodiesel and diesel is covered by BPDP funds from palm export levies, and volumes are shared through allocations to biofuel business entities.
Full history: history of Indonesia's biodiesel mandate.