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Indonesia’s B50 biodiesel rollout reaches 104 fuel delivery points

Indonesia’s B50 biodiesel rollout has reached 104 operational fuel delivery points, marking a major infrastructure milestone about two months after the nationwide programme began on July 9.

Indonesia’s B50 biodiesel rollout has reached 104 operational fuel delivery points, marking a major infrastructure milestone about two months after the nationwide programme began on July 9.

According to the Energy and Mineral Resources Ministry, 76 delivery points are already distributing B50, while a further 28 are being converted from the previous B40 blend. At the retail level, 6,050 petrol stations operated by PT Pertamina Patra Niaga—around 94% of its national network—have begun dispensing the higher biodiesel blend.

Another 362 outlets are still completing the conversion process.

B50 distribution reaches 3.4 million kilolitres

Eniya Listiani Dewi, director general of new and renewable energy and energy conservation at the ministry, told lawmakers that B50 distribution had reached 3.4 million kilolitres (kL) as of Monday.

The figure forms part of a wider distribution target of 10.69 million kL. Eniya told the House of Representatives Commission XII that the government expects distribution to reach its target by December.

The reported total also includes 7,273 kL of B40 distributed before the B50 programme began.

B50 consists of an equal blend of palm oil-derived fatty acid methyl ester (FAME) and fossil diesel. Indonesia is using the higher biodiesel blend as part of its strategy to reduce dependence on diesel imports.

Government targets higher FAME supply

The expansion of B50 is closely tied to the availability of FAME, the biodiesel component produced from palm oil.

The government is targeting between 16.8 million kL and 18 million kL of FAME supply from biofuel producers by the end of the year.

The ministry has also linked greater biodiesel utilisation with potential reductions in the country’s reliance on imported oil. Eniya estimated that biodiesel utilisation of 18 million kL could deliver oil savings equivalent to 310,000 barrels per day.

She compared that potential saving with national oil lifting of around 610,000 barrels per day.

The estimate is a government assessment rather than an independently verified result, and its realisation will depend on the scale and consistency of B50 deployment and fuel supply.

Feedstock and production capacity remain key challenges

While distribution infrastructure has expanded rapidly, the source identifies feedstock availability and production capacity as continuing challenges for the B50 programme.

In July 2025, Eniya had projected that a full 50% biodiesel blend would require approximately 20 million tonnes of FAME and two million tonnes of crude palm oil, substantially more than the volumes required for B40.

She also said that five large-capacity biodiesel plants would be needed to support B50, compared with three plants that were under construction at that time.

Infrastructure coverage is another issue. The source identifies Eastern Indonesia as a priority area for additional facilities because distribution infrastructure remains uneven across the country.

Despite these gaps, officials maintain that the programme remains on course to meet its 2026 targets.

Downstream industry expansion supports biodiesel push

Indonesia is also developing supporting downstream industries alongside the biodiesel programme.

The Energy and Mineral Resources Ministry said in July that national methanol demand was approximately 2.5 million tonnes per year. Minister Bahlil Lahadalia said the government planned to establish a domestic methanol industry to meet that demand.

According to the source, plants using natural gas and coal as feedstocks are planned for East Java and East Kalimantan.

Separately, PT Agrinas Palma Nusantara announced in July that it would reactivate its biodiesel production facility in Rengat, Riau, to support the national mandate.

These developments point to a wider effort to build domestic industrial capacity around Indonesia’s biofuel programme rather than focusing solely on retail fuel distribution.

Infrastructure expansion must keep pace with the mandate

The rapid increase in B50 delivery points shows that Indonesia has made substantial progress in converting its fuel distribution system. With 94% of Pertamina Patra Niaga’s retail network already dispensing the blend, the remaining challenge is increasingly tied to completing conversions and addressing areas where infrastructure coverage is less developed.

At the same time, higher biodiesel blending increases the importance of securing sufficient FAME supply and production capacity. The government’s earlier estimates indicate that moving from B40 to B50 requires significantly greater feedstock and processing volumes.

Bioenergy Business Analysis

Indonesia’s B50 rollout illustrates the scale of infrastructure and feedstock coordination required when a major biodiesel market moves to a higher blending mandate. The reported 104 operational delivery points and 94% retail-network coverage indicate that distribution is advancing, but the remaining infrastructure gaps show that nationwide implementation is not uniform.

The more significant issue for the next phase is supply. The government’s own estimates point to substantially higher FAME and palm oil requirements under B50, while additional large-scale biodiesel production capacity is also needed. This makes feedstock availability, plant capacity and logistics as important to the programme’s execution as fuel-station conversion.

For biofuel producers and infrastructure developers, the development signals continued government emphasis on domestic biodiesel utilisation. For policymakers, the key test will be whether distribution expansion can be matched by reliable FAME supply and sufficient production capacity through the end of the year.

Indonesia’s B50 programme is therefore moving beyond a blending-policy announcement into a broader industrial and distribution challenge involving fuel retailers, biodiesel producers, feedstock suppliers and downstream industries.

Read also: Indonesia’s B60 biodiesel push unlikely to cause major supply shock for India

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Bioenergy Business
Bioenergy Business
Bioenergy Business is a dedicated platform focused on the global bioenergy business, providing comprehensive insights into policy, information, data, news, and expert analysis.
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