Pertamina Projects B50 Could Cut Diesel Imports by 18 Million kL

Jakarta — PT Pertamina (Persero) estimates that Indonesia's B50 biodiesel programme could reduce diesel imports by up to 18 million kilolitres and save approximately IDR 170 trillion in foreign exchange in 2026. Senior Vice President of Business Development Ary Kurniawan presented the projection at the Investor Daily Summit 2026 in Jakarta on 7 October.

B50 is diesel fuel containing a 50% biodiesel blend. Ary said the higher blending mandate forms part of an energy diversification strategy that uses domestic resources, particularly palm oil, to reduce dependence on imported fuel.

Pertamina projects economic and emissions gains

Pertamina also projects that B50 could cut emissions by about 44 million tonnes of CO₂e. The programme is estimated to support around 2.1 million jobs and create IDR 20.9 trillion in additional value for crude palm oil.

These figures are Pertamina's projections rather than final realised results. Actual outcomes will depend on distribution volumes, biodiesel supply readiness, logistics, energy prices and the consistency of government policy. Readers can follow mandate developments through Media Biodiesel's biodiesel regulations and biodiesel market index price (HIP) pages.

Ary said Indonesia needs to optimise both its oil and gas resources and its plantation commodities. Under that approach, palm oil is positioned not only as a food and export commodity but also as a feedstock for transport energy.

A wider domestic biofuel portfolio

Pertamina is developing several biofuel pathways beyond biodiesel. The company plans to test palm-based biogasoline at two refineries, continues to develop molasses-based bioethanol, and is producing sustainable aviation fuel from used cooking oil.

The projects address different transport segments. Biodiesel is blended into diesel fuel, bioethanol is intended for petrol blends, and sustainable aviation fuel serves the aviation sector. Each pathway requires its own quality standards, production assets, feedstock supply chain and blending policy.

Ary said regulation and government mandates remain necessary to convert Indonesia's domestic resources into consistent energy supply. Policy certainty is also important for producers and distributors planning capacity, storage, blending and delivery infrastructure.

Delivery will determine the real savings

The 18 million-kilolitre import reduction gives a measure of the role Pertamina expects B50 to play. However, the fiscal and foreign-exchange effects will need to be assessed alongside incentive costs, movements in CPO prices, logistics requirements and programme performance during the year.

Key indicators therefore extend beyond the nominal blending percentage. Actual biodiesel deliveries, fuel quality, programme costs and changes in diesel imports will determine how closely B50's performance matches Pertamina's projections.