JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 carried out, the B40 mandate could increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be completed in December, so that full implementation of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to satisfy B40 need, with set up capability expected to increase to 20 million KL every year next year from 18 million KL now.
"However we will need more raw materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decrease in exports suggested there would be adequate basic materials to provide the B40 required in the meantime.
But the market would require to examine "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million lots as domestic intake rose, driven by biodiesel mandate.
The ministry had actually checked the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier this week, while preparing to test the B40 mix on farming machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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