Biodiesel allowance decree was awaited by industry
Indonesia had planned to launch higher biodiesel mix on Jan. 1
Palm oil criteria agreement increased 1% after previous fall
Government aims for 50% biodiesel mix in 2026
(Recasts with energy minister's remark)
By Bernadette Christina and Fransiska Nangoy
JAKARTA, Jan 3 (Reuters) - Indonesia Energy and Mineral Resources Minister signed a decree on Friday allocating 15.6 million kilolitres (KL) of biodiesel for 2025 circulation, while providing the market until of next month to adjust to the greater level of the fuel in the mix.
Indonesia, the world's largest exporter of palm oil, had actually planned to launch the obligatory requirement of 40% palm oil fuel in biodiesel on Jan. 1, up from 35% now.
"The ministerial regulation has been signed," the minister Bahlil Lahadalia told press reporters, adding the government was working to increase the necessary biodiesel mix to 50% next year.
Eniya Listiani Dewi, a ministry senior official, said biodiesel producers and fuel merchants will be offered till Feb. 28 to adjust to the B40 mix. She stated the hold-up was since of technical challenges connected to subsidies for the fuel.
The non-implementation on Jan. 1. had resulted in a 2.6% drop in the Malaysian palm oil standard contract on Thursday. On Friday, it recovered by around 1%.
Fuel sellers and biodiesel producers had said they were not able to prepare agreements for biodiesel distribution without the decree.
The biodiesel allocation for 2025 showed an increase from 2024's approximated biodiesel consumption of 12.98 KL, ministry information showed on Friday.
Of the total allowance for this year, 7.55 million KL is for the public service obligation (PSO), which covers sectors such as public transport, whose sales will be subsidised by the nation's palm oil fund.
"The staying allocations will be cost market price. The non-PSO allowance is set at 8.07 million KL," Bahlil stated, including the fund could not subsidise the price space between the palm oil and nonrenewable fuel sources for the total allotment.
BPDPKS, the company in charge of gathering and managing the palm oil funds, approximated in November B40 would need a 68% aid increase.
To help finance that, Indonesia plans to increase its export levy for crude palm oil (CPO) to 10% from the present 7.5%, however for that to take place, another official regulation is needed. (Reporting by Bernadette Christina Munthe, Fransiska Nangoy, Dewi Kurniawati
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Indonesia Signs 15.6 Mln Kilolitres Biodiesel Allocation For 2025
luther39k98969 edited this page 2025-01-12 02:44:50 -06:00