JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry said.
If carried out, the B40 mandate might increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be ended up in December, so that complete execution of B40 could be carried 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 capability to fulfill B40 demand, with set up capability anticipated to increase to 20 million KL every year next year from 18 million KL now.
"However we will need more basic materials to meet B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he included.
Indonesia's most significant palm oil association GAPKI said a decline in exports meant there would suffice raw products to provide the B40 mandate for now.
But the industry would require to assess "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make supplying the domestic market less feasible.
Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from last year, while exports are expected to decrease by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel required.
The ministry had tested the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on agriculture machinery, and in the shipping industry, it stated. (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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