Indonesia's Mandatory B50 Biodiesel Policy Postponement in 2026: Prudent Strategic Decision or Policy Setback? A Review

This journal analyzes the delay in the implementation of the mandatory B50 biodiesel in 2026 while maintaining B40, in the context of Indonesia's energy transition ambitions and palm oil industry dynamics. The aim is to assess whether this policy is a setback or a strategic step. Through a qualitative literature review from 2020–2026, the study highlights technical, fiscal, environmental, and governance aspects. The results indicate ongoing challenges in compatibility testing, infrastructure readiness, subsidy burdens, as well as risks of environmental and food impacts. The delay is considered an adaptive and evidence-based decision to ensure the sustainability of the long-term program.