Introduction
Indonesia continues to strengthen its commitment to energy transition by reducing dependence on fossil fuels. One of the strategic steps taken is the development of biodiesel as a more environmentally friendly fuel alternative. Following the success of the Biodiesel B30 program, the government is now preparing to implement Biodiesel B40 in 2025.
B40 is a fuel blend containing 40% biodiesel derived from vegetable oil and 60% conventional diesel fuel. This initiative aims to reduce carbon emissions, enhance energy security, and support the national palm oil industry. However, its implementation also faces challenges related to infrastructure readiness. This article explores Biodiesel B40 in-depth, covering its benefits, pros and cons, and the challenges to overcome before full implementation.
Definition, Benefits, and Reasons for Implementing Biodiesel B40
What is Biodiesel B40?
Biodiesel B40 is a fuel mixture consisting of 40% biodiesel (FAME – Fatty Acid Methyl Ester) derived from vegetable oil, particularly palm oil, and 60% conventional diesel fuel. This program continues the successful Biodiesel B30 implementation, which has operated in Indonesia since 2020.
Benefits of Biodiesel B40
- Reducing Greenhouse Gas Emissions
Biodiesel produces lower carbon emissions compared to fossil fuels. The implementation of B40 will reduce the carbon footprint of the transportation and industrial sectors.
- Reducing Dependence on Fuel Imports
By increasing the proportion of bio-based fuel, Indonesia can reduce crude oil imports and strengthen national energy security.
- Supporting the Palm Oil Industry
As one of the world’s largest palm oil producers, Indonesia can utilize palm oil production to create biodiesel, adding value to the agricultural sector and creating new job opportunities.
- Enhancing Energy Efficiency and Fuel Price Stability
With biofuel alternatives, fuel prices become more stable and are less affected by global crude oil price fluctuations.
Why is Biodiesel B40 Being Implemented?
The implementation of Biodiesel B40 supports a green energy policy that aims to achieve net zero emissions by 2060. Additionally, this initiative aligns with Indonesia’s commitment to global climate agreements to reduce emissions from the transportation and industrial sectors.
Pros and Cons of Biodiesel B40
- Pros of Biodiesel B40
- More Environmentally Friendly – Produces lower emissions compared to pure diesel.
- Renewable Energy Source – Derived from vegetable oils that can be replenished.
- Supports the Local Economy – Increases domestic demand for palm oil.
- Reduces Dependence on Fossil Fuels – Lowers crude oil imports and enhances national energy security.
- Cons of Biodiesel B40
- Potential Increase in Production Costs – The process of producing biodiesel is more complex than refining crude oil.
- Water Content and Oxidation Stability – Biodiesel has a higher water content, which can cause corrosion in fuel systems if not properly managed.
- Impact on Older Vehicles – Older vehicles without compatible engine technology may experience performance issues.
- Effect on Palm Oil Market – Increased demand for biodiesel may impact palm oil prices and related commodities.

https://unsplash.com/photos/black-digital-device-at-2-00-dQjTFIzw6qo
Challenges in Implementing Biodiesel B40
Although this program offers numerous benefits, stakeholders must overcome several challenges before fully implementing it in 2025. Some key challenges include:
- Infrastructure and Distribution Readiness
Enhancements in storage, processing, and distribution facilities are necessary to ensure a smooth supply of Biodiesel B40 across Indonesia.
- Compatibility with Vehicles and Industrial Machinery
Experts must test vehicle engines and industrial equipment for compatibility with high-biodiesel blends to prevent technical issues such as filter clogging or component degradation.
- Price Stability and Raw Material Supply
The high demand for palm oil for biodiesel must be balanced with policies ensuring sufficient domestic raw material supply.
- Government Regulations and Incentives
Supportive policies are needed to encourage the widespread adoption of B40, including incentives for the automotive and transportation industries to adapt their technology to this fuel.
- Public Awareness and Acceptance
Outreach efforts must be conducted to educate the public and industry players about the benefits and proper usage of Biodiesel B40.
Conclusion
Biodiesel B40 is a strategic initiative by the government to drive a cleaner and more sustainable energy transition. With a blend of 40% biodiesel and 60% diesel, this fuel is expected to lower carbon emissions, reduce dependence on imported fuel, and boost the palm oil industry.
Although it offers various advantages such as being environmentally friendly and enhancing national energy security, challenges in implementing B40 must be addressed, particularly in terms of infrastructure, vehicle compatibility, and raw material supply stability.
With proper regulatory support and adequate technological and infrastructure preparedness, Biodiesel B40 can be an effective solution in Indonesia’s efforts to achieve its green energy targets. The public and industries must be ready to embrace this more sustainable fuel era as part of a global commitment to tackling climate change.
Read other Articles: DEF: Helping Indonesia Achieve Net Zero Emission