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Page: Indonesia Plans Increase in Palm Oil based Biodiesel In 2025

Advantages and Disadvantages Of Biofuels

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Biodiesel Fuel Basics

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Growing Jatropha Integerrima: Caring for The Jatropha Tree

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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025

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1 Indonesia Plans Increase in Palm Oil based Biodiesel In 2025

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

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

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

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to fulfill B40 need, with set up capacity anticipated to increase to 20 million KL yearly next year from 18 million KL now.

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

The biodiesel market would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.

Indonesia's greatest palm oil association GAPKI stated a decrease in exports meant there would suffice basic materials to supply the B40 required for now.

But the market would need to assess "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make providing the domestic market less feasible.

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

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