Indonesia Confirms B40 for 2025 after 50,000-Km Road Test

Jakarta — Indonesia confirmed that the B40 biodiesel mandate would take effect in 2025 after vehicle road tests covered up to 50,000 kilometres and authorities reviewed production and distribution readiness. On 28 December 2024, the Ministry of Energy and Mineral Resources (ESDM) said the 2025 biodiesel allocation had been set at 15.6 million kilolitres: 7.55 million kilolitres for the public service obligation (PSO) segment and 8.07 million kilolitres for non-PSO users.

B40 is diesel blended with 40% palm-based biodiesel. The policy raises the blend from B35, which had been in force since February 2023. The government targeted implementation from 1 January 2025.

Road tests covered up to 50,000 kilometres

The technical groundwork began with a road test launched by the ESDM Ministry on 27 July 2022. It used diesel vehicles weighing below and above 3.5 tonnes. Light vehicles travelled 50,000 kilometres, while heavy vehicles covered 40,000 kilometres.

When the road test ended in November 2022, the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) said the findings provided a technical basis for B40 implementation. The programme examined more than whether vehicles could keep running: it also covered fuel handling, consumption, performance, emissions, components and lubricants.

In August 2024, Energy Minister Arifin Tasrif said the automotive road test had been completed. The government was still testing B40 in non-automotive applications, including heavy equipment, power generation, shipping and railways. That stage mattered because operating patterns and engine requirements differ across sectors.

Initial estimate adjusted to a 15.6-million-kilolitre allocation

In its August 2024 statement, the ministry estimated that B40 demand could reach 17.57 million kilolitres in 2025. By 28 December, the announced allocation was 15.6 million kilolitres. The difference reflected a shift from an earlier planning estimate to the volume formally prepared for distribution.

Deputy Energy Minister Yuliot Tanjung said the government had determined the 2025 allocation and appointed biofuel producers. Authorities were also preparing biodiesel quality standards, blend supervision and a readiness review at Pertamina’s Balongan facilities.

B40 readiness depended on more than FAME production. Biodiesel had to be transported to terminals, blended with diesel at the required percentage, tested for quality and distributed to PSO and non-PSO users. As the blend volume increased, specification consistency and reliable logistics became central implementation issues.

Impact on domestic palm-oil demand

Raising the blend from B35 to B40 increases the biodiesel share in every litre of blended diesel. With a 15.6-million-kilolitre allocation, the government positioned biodiesel as one of the largest sources of domestic demand for palm products and as an instrument to reduce fossil diesel requirements.

The allocation also showed how the market was divided. The PSO segment received 7.55 million kilolitres, while non-PSO users were allocated 8.07 million kilolitres. The two segments require continued monitoring because their distribution arrangements and policy support are not necessarily identical.

The December 2024 decision closed a long preparation phase that included road testing, non-automotive trials, quality-setting and facility checks. The next challenge was to ensure that B40 was available across the country and met specifications once implementation began. Readers can follow blend developments on the biodiesel mandate data page and review suppliers on the biodiesel producer page.