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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
Blaine Mooring edited this page 2025-01-11 13:52:26 -06:00


JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry stated.

If implemented, the B40 mandate could increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials might be completed in December, so that complete execution of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 need, with installed capability expected to increase to 20 million KL annually next year from 18 million KL now.

"However we will require more raw materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry would require 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he added.

Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would be enough raw materials to supply the B40 in the meantime.

But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million lots as domestic consumption increased, driven by biodiesel required.

The ministry had tested the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while planning to test the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati