As per reports, the Indonesian government will implement a B50 biodiesel policy, blending 50 percent palm oil-based fuel (CPO) with 50 percent diesel starting from Wednesday (01 July), as part of efforts to reduce reliance on fossil fuels amid global oil supply disruptions.

• This policy is expected to save approximately 4 million kiloliters of fossil-based fuel annually and generate subsidy savings estimated at IDR 48 trillion.
• The government has also indicated that the initiative could result in a domestic surplus of diesel, supported by expanded refinery operations, including in East Kalimantan.
• Energy company Pertamina has confirmed readiness to support the rollout, and the government emphasizes energy independence, efficiency, and mitigation of fuel supply risks due to geopolitical tensions in the Middle East.