Indonesia has allocated 15.6mn kilolitres to domestic biodiesel producers for its 2026 biodiesel-fossil diesel blending programme, the ministry of energy and mineral resources (ESDM) announced on 22 December.
Total allocated biodiesel blend volumes will remain unchanged in 2026, with 7.45mn kl allocated to public service obligation (PSO) and 8.19mn kl to non-PSO (NPSO) firms.
The ESDM this year allocated 7.6mn kl and 8mn kl to PSO and NPSO firms respectively under the 40pc biodiesel blend mandate.
Indonesia reshuffled blend volumes earlier in December to shift an allocated 480,000 kl from PSO to NPSO fuel suppliers.
But volume allocations will increase if Indonesia moves to a 50pc biodiesel blend mandate in the second half of 2026.
Fuel suppliers under the PSO receive subsidies from the oil plantation fund management agency (BPDP) to fund the difference between palm oil-based biodiesel and the indexed price of diesel, while NPSO fuel suppliers do not.
