ESDM Prepares Kepmen on B50 Allocation

The Ministry of Energy and Mineral Resources (“ESDM”) is currently preparing the necessary regulatory framework ahead of the implementation of B50 biodiesel in July. The Director General of New, Renewable Energy and Energy Conservation (Energi Baru, Terbarukan dan Konservasi Energi - “EBTKE”), Eniya Listiani Dewi, stated that a Decree of the Minister (“Kepmen”) regulating the allocation volume of B50 biodiesel is being prepared.

“I am already making preparations; it will take about 2–3 months to finalize the Kepmen,” Eniya said.

Eniya targets the allocation Kepmen to be completed no later than one month before the mandatory implementation takes effect. She explained that the regulation serves as a technical instrument that determines the allocation volume for the blending of biofuel (Bahan Bakar Nabati -“BBN”) with fossil fuel to be carried out by business entities.

“These business entities are paired with blending business entities, namely fuel oil business entities. They will be matched under the allocation Kepmen,” she said.

In addition, ahead of the implementation of B50, Eniya confirmed that a series of trials have been conducted since early December 2024, including laboratory tests, road tests, and stationary tests across various sectors. The Government is also encouraging the automotive component industry to adjust spare parts so that they are compatible and adaptive to B50 biodiesel.