Indonesia Plans Increase In Palm Oil-based Biodiesel In 2025

JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is evaluating 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 executed, the B40 mandate could increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.


"We hope the trials could be ended up in December, so that complete execution of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.


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


"However we will need more raw materials to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.


The biodiesel market would need 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons needed this year, he added.


Indonesia's greatest palm oil association GAPKI said a decline in exports meant there would suffice raw products to supply the B40 required for now.


But the market would need to examine "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make providing the domestic market less practical.


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


The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to check the B40 mix on agriculture equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)