KONTAN.CO.ID - LEMBANG, Indonesia, April 21 - Indonesia consumed 3.9 million kilolitres of palm-based biodiesel in the year to date up to April 13 under its biodiesel blending mandate, an energy ministry official said on Tuesday, as preparations got underway to increase the blending rate further.

Starting from July 1, Indonesia will raise the mandatory palm oil-based biodiesel content from the current 40% to 50%, with the remainder consisting of conventional diesel.

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The programme is part of the government's strategy to reduce its dependence on costly fuel imports and mitigate Iran war risks.

The energy ministry said a transition period of three months will start on July 1 to make the switch to the new blend, known as B50.

It is currently being tested on passenger cars, trucks, farming equipment, mining machinery, and ships, senior energy ministry official Eniya Listiani Dewi said.

"God willing, as instructed, it can be implemented on July 1," Eniya told reporters during a B50 testing event in Bandung, West Java, where the ministry conducted road tests for nine vehicles, including a bus, SUVs and trucks, which will use the new blend to drive around 300 km during Tuesday's session.

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She said the fuel specifications for B50 would be improved compared to B40, with lower water and monoglyceride content.

"Lower (water content) is better, as more water is what (reduces) engine performance. So, we emphasize lower water content," said Eniya.

A water content test during the event showed the B50 contained 208.81 parts per million (PPM) water, below the 300 PPM standard set by the ministry.

The energy ministry said the tests have shown fuel consumption was within the manufacturer's standard range, without any significant decrease in performance.

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The government has yet to decide the additional biodiesel quota required to implement the B50 programme in the second semester this year, Eniya said.

Indonesia initially allocated 15.65 million kilolitres of biodiesel for 2026 under the ⁠previousB40 mandate.