Phasing inBiodiesel
Mandatory biodiesel programme (MEMR regulations under Law 30/2007)
Diesel sold in the domestic market must contain a mandated share of palm-based FAME.
Timeline
- 2020
B30 mandate implemented nationally.
- 2023
B35 mandate implemented.
- 2025
B40 mandate takes effect from 1 January 2025.
- 2026 onward
Government roadmap targets a step to B50 subject to feedstock and capacity readiness.
Requirements
- Allocation quotas issued to registered FAME producers and fuel distributors each year.
- Programme part-funded by the palm oil export levy administered by BPDPKS.
- Blend level applies to both subsidised (PSO) and non-subsidised diesel, with staged coverage.
Compliance status & enforcement
- Administrator
- Ministry of Energy and Mineral Resources (MEMR) with BPDPKS
- How compliance is shown
- Quarterly allocation and realisation reporting by producers and distributors; levy-funded incentive payments settled against delivered volumes.
- Penalty for shortfall
- Reduction or withdrawal of allocation quota and administrative sanctions under MEMR regulation.
- Tradable unit
- None — physical blend obligation