Wilmar Says B60 Will Need New Biodiesel Capacity as Plants Run at Very High Utilisation Under B50

Jakarta — Wilmar says any increase in Indonesia's biodiesel mandate beyond B50 will require new production capacity, because existing plants are already running at very high utilisation even at B50. Rahul Kale, group head of biofuels at Wilmar, made the point at the APPEC 2026 conference in Singapore, as reported by S&P Global and republished by UkrAgroConsult on 14 September 2026, as the government plans to introduce B60 in 2027.

B60's challenge is capacity

According to Kale, a blend above B50 cannot be met by the plants operating today. He said Indonesian biodiesel plants are already running at very high utilisation under the B50 mandate, so moving to B60 would require additional investment.

S&P Global Energy Horizons estimates domestic biodiesel demand could reach 13.85 million tonnes in 2026. At the same time, approved 2026 production quotas are described as roughly unchanged at 15.646 million kilolitres, or about 13.77 million tonnes. With quotas almost flat, there is little room for demand growth without expanding production.

The S&P quota figure differs from the B50 FAME requirement cited by the Ministry of Energy and Mineral Resources (ESDM) in July 2026, which was 16.7–18 million kL a year, as reported by KabarBursa. Readers should note the different bases behind the two figures.

Utilisation: "very high" versus 80%

Wilmar's view on utilisation also differs in emphasis from government data. In July 2026, EBTKE Director General Eniya Listiani Dewi said installed capacity at active biodiesel plants was about 22 million kL a year with utilisation of around 80%, with the remaining 20% kept as a buffer for routine maintenance and equipment adjustment, according to KabarBursa. Producer data is available in our biodiesel producer directory.

Indicator	Figure	Source
Domestic biodiesel demand, 2026	13.85 million tonnes (estimate)	S&P Global
Approved 2026 production quota	15.646 million kL (~13.77 million tonnes)	S&P Global
National installed capacity	~22 million kL/year	ESDM
Utilisation	~80%	ESDM
B50 FAME requirement	16.7–18 million kL/year	ESDM

Programme economics still seen as supportive

Despite flagging capacity limits, Wilmar sees the economics of the biodiesel programme as supportive. According to the report, diesel currently costs more than biodiesel, and palm oil export levies and duties help fund the programme. Higher domestic biodiesel use would increase domestic palm oil demand and could reduce the volume available for export.

The S&P report also said B50 was launched on 1 July for the public service obligation (PSO) segment, while the non-PSO segment remained at B40. The government itself set a three-month transition, with all distribution points expected to be fully on B50 from 1 October 2026, as Eniya told detikcom in early July.

Beyond biodiesel, Wilmar is evaluating Indonesia's emerging ethanol sector, including feedstocks from biomass and sugar-processing by-products. The company already takes part in ethanol mandate programmes in India and Australia and sees Indonesia as a potential expansion market.

Government still targets B60 in 2027

Wilmar's comments come as the government reaffirms its push towards B60. Deputy Energy Minister Yuliot Tanjung told IndoEBTKE ConEx 2026 on 2 September 2026 that after implementing B50 this year, B60 would begin next year in line with a statement by President Prabowo Subianto, the German-Indonesian Chamber of Industry and Commerce (AHK Indonesia/EKONID) reported.

According to the same report, B60 requires sufficient CPO supply and adequate FAME production capacity, as it is expected to cover both subsidised and non-subsidised diesel. Eniya said the government is still weighing whether B60's renewable component should be entirely FAME or partly hydrotreated vegetable oil (HVO). The Plantation Fund Management Agency's B60 study is due in December 2026. By the end of August, B50 distribution through Pertamina and private fuel companies had reached about 80%, with Pertamina alone close to 90%.