{"id":2858229,"version":0,"headline":"Indonesia sets biodiesel production volumes for B50","dateModified":"2026-07-29T12:04:20Z","datePublished":"2026-07-29T11:41:39Z","articleBody":"<article><p class=\"lead\">The Indonesian ministry of energy and mineral resources (ESDM) has today allocated production volume targets to domestic biodiesel producers to implement its 50pc fossil diesel-biodiesel blend (B50) mandate, according to a document seen by <i>Argus</i>.</p><p>ESDM has allocated a total of 16.7mn kilolitres (kl) across 26 biodiesel producers for 2026 to fulfill the B50 mandate, up from 15.6mn kl allocated at the <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2769075\">start of the year</a> for its original B40 target.</p><p>Biodiesel producers had been awaiting updated volume allocations <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2853639\">under the new B50 target for most of July</a>, despite the mandate officially taking effect <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2808707\">at the start of the month</a>.</p><p>Of the total allocated volume, the ministry has instructed producers to supply 8.2mn kl of subsidised biodiesel volumes to the public service obligation (PSO) sector — targeted at public transportation, public services, agriculture and micro-enterprises. The remaining 8.5mn kl must be supplied to the non-PSO sector — including commercial industries, private transport, general mining, manufacturing, and power plants.</p><p>Indonesian plantation fund management agency BPDPKS funds the price gap between biodiesel and fossil gasoil using revenue from export levies on palm oil and related products, for biodiesel delivered to the PSO sector. It delivers the funds to biodiesel producers after they supply biodiesel to fuel distribution companies at the cost of regular gasoil. Fuel distributors then supply blended biodiesel and gasoil to consumers. </p><p class=\"bylines\">By Malcolm Goh</p></article>","dateline":"Singapore, 29 July (Argus)","license":"<footer><p><br> Send comments and request more information at <a href=\"mailto:feedback@argusmedia.com?subject=Argus Direct article feedback&body=I am contacting you regarding Indonesia sets biodiesel production volumes for B50, available at http://direct.argusmedia.com/newsandanalysis/article/cs-24928129.\" target=\"_parent\"> feedback@argusmedia.com </a></p><p><i> Copyright © 2026. <a href=\"http://www.argusmedia.com/\" target=\"_blank\">Argus Media group</a>. All rights reserved. </i></p></footer>","copyrightHolder":"Argus Media group","copyrightYear":2026,"taxonomy":{"contexts":[{"name":"Fundamentals","children":[{"name":"Demand","children":[]},{"name":"Supply","children":[]}]}],"regions":[{"name":"Asia-Pacific","children":[{"name":"Southeast Asia","children":[{"name":"Indonesia","children":[]}]}]}],"sectors":[{"name":"Agriculture","children":[{"name":"Vegetable oil","children":[{"name":"Palm oil","children":[]}]}]},{"name":"Biofuels","children":[{"name":"Biodiesel","children":[]}]},{"name":"Chemicals","children":[{"name":"Oleo- and pine chemicals","children":[{"name":"Fatty acids","children":[]},{"name":"Fatty alcohols","children":[]},{"name":"Glycerine","children":[]}]}]}]},"pullQuote":null,"newsType":"Daily news","language":"en-GB","keywords":null,"isFree":true,"isFeatured":false,"body":"<p class=\"lead\">The Indonesian ministry of energy and mineral resources (ESDM) has today allocated production volume targets to domestic biodiesel producers to implement its 50pc fossil diesel-biodiesel blend (B50) mandate, according to a document seen by <i>Argus</i>.</p><p>ESDM has allocated a total of 16.7mn kilolitres (kl) across 26 biodiesel producers for 2026 to fulfill the B50 mandate, up from 15.6mn kl allocated at the <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2769075\">start of the year</a> for its original B40 target.</p><p>Biodiesel producers had been awaiting updated volume allocations <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2853639\">under the new B50 target for most of July</a>, despite the mandate officially taking effect <a href=\"https://direct.argusmedia.com/newsandanalysis/article/2808707\">at the start of the month</a>.</p><p>Of the total allocated volume, the ministry has instructed producers to supply 8.2mn kl of subsidised biodiesel volumes to the public service obligation (PSO) sector — targeted at public transportation, public services, agriculture and micro-enterprises. The remaining 8.5mn kl must be supplied to the non-PSO sector — including commercial industries, private transport, general mining, manufacturing, and power plants.</p><p>Indonesian plantation fund management agency BPDPKS funds the price gap between biodiesel and fossil gasoil using revenue from export levies on palm oil and related products, for biodiesel delivered to the PSO sector. It delivers the funds to biodiesel producers after they supply biodiesel to fuel distribution companies at the cost of regular gasoil. Fuel distributors then supply blended biodiesel and gasoil to consumers. </p><p class=\"bylines\">By Malcolm Goh</p>","lead":"The Indonesian ministry of energy and mineral resources (ESDM) has today allocated production volume targets to domestic biodiesel producers to implement its 50pc fossil diesel-biodiesel blend (B50) mandate, according to a document seen by <i>Argus</i>.","cmsId":"24928129","source":"Censhare"}