From 6be05fb9dd7f4c376d62229d8de69e4c4e261dac Mon Sep 17 00:00:00 2001 From: swenbianco6139 Date: Sun, 12 Jan 2025 10:00:24 +0800 Subject: [PATCH] Add 'Indonesia's Higher Biodiesel Mandate Rollout May Be Gradual,' --- ...iesel-Mandate-Rollout-May-Be-Gradual%2C.md | 23 +++++++++++++++++++ 1 file changed, 23 insertions(+) create mode 100644 Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md diff --git a/Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md b/Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md new file mode 100644 index 0000000..d2eb103 --- /dev/null +++ b/Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md @@ -0,0 +1,23 @@ +
Indonesia insists B40 biodiesel execution to proceed on Jan. 1
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Industry individuals looking for phase-in duration anticipate gradual introduction
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Industry faces [technical difficulties](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and cost concerns
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Government financing concerns develop due to palm oil cost variation
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JAKARTA, Dec 18 (Reuters) - Indonesia's plan to broaden its [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) mandate from Jan. 1, which has actually [fuelled issues](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) it could [curb global](https://stocktwits.com/symbol/MNEL) palm oil materials, looks progressively likely to be carried out gradually, [experts](https://www.google.com/search?kgmid=/m/0cqd_rb) said, as market participants seek a phase-in period.
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Indonesia, the world's greatest [producer](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and exporter of palm oil, plans to raise the mandatory mix of palm oil in [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) to 40% - called B40 - from 35%, a policy that has activated a dive in palm futures and might pressure costs even more in 2025.
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While the [federal government](https://www.google.com/search?kgmid=/m/0cqd_rb) of President Prabowo Subianto has stated repeatedly the plan is on track for complete launch in the new year, market watchers say expenses and [technical obstacles](https://stocktwits.com/symbol/MNEL) are most likely to lead to partial implementation before complete adoption across the stretching archipelago.
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Indonesia's biggest fuel retailer, [state-owned](https://forest500.org/rankings/companies/mission-newenergy-limited) Pertamina, said it requires to customize some of its fuel terminals to mix and store B40, which will be finished during a "transition duration after government develops the mandate", spokesperson Fadjar Djoko Santoso told Reuters, without offering details.
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During a meeting with federal government authorities and biodiesel manufacturers last week, fuel merchants requested a two-month transition period, Ernest Gunawan, secretary general of [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) producers association APROBI, who was in presence, informed Reuters.
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Hiswana Migas, the fuel retailers' association, did not instantly react to a [request](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) for comment.
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Energy ministry senior official Eniya Listiani Dewi told Reuters the required walking would not be implemented slowly, and that [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) [manufacturers](https://stocktwits.com/symbol/MNEL) are ready to supply the higher mix.
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"I have confirmed the readiness with all producers recently," she stated.
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APROBI, whose members make fat methyl ester (FAME) from palm oil to be with diesel fuel, stated the government has not provided allowances for manufacturers to sell to fuel retailers, which it generally has actually done by this time of the year.
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"We can't deliver the goods without order files, and order documents are acquired after we get contracts with fuel business," Gunawan informed Reuters. "Fuel companies can just sign agreements after the ministerial decree (on [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) allotments)."
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The [government plans](https://forest500.org/rankings/companies/mission-newenergy-limited) to assign 15.62 million [kilolitres](https://www.bloomberg.com/profile/company/MNELF:US) (4.13 billion gallons) of FAME for B40 in 2025, Eniya told Reuters, less than its [preliminary](https://forest500.org/rankings/companies/mission-newenergy-limited) price quote of 16 million kilolitres.
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FUNDING CHALLENGES
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For the federal government, moneying the greater mix could likewise be a [difficulty](https://www.bloomberg.com/profile/company/MNELF:US) as palm oil now costs around $400 per metric load more than petroleum. Indonesia uses proceeds from palm oil export levies, managed by a firm called BPDPKS, to cover such spaces.
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In November, BPDPKS estimated it needed a 68% increase in subsidies to 47 trillion rupiah ($2.93 billion) next year and approximated levy collection at around 21 trillion rupiah, sustaining market speculation that a levy hike looms.
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However, the palm oil industry would challenge a levy hike, said Tauhid Ahmad, a [senior analyst](https://www.pinterest.com.au/missionnewenergy/) with think-tank INDEF, as it would hurt the market, including palm smallholders.
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"I think there will be a delay, due to the fact that if it is carried out, the aid will increase. Where will (the cash) come from?" he stated.
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Nagaraj Meda, managing director of Transgraph Consulting, a commodity consultancy, said B40 execution would be challenging in 2025.
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"The implementation may be sluggish and progressive in 2025 and probably more fast-paced in 2026," he stated.
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Prabowo, who took office in October, campaigned on a platform to raise the required even more to B50 or B60 to achieve energy self-sufficiency and cut $20 billion of yearly fuel imports. ($1 = 16,035.0000 rupiah) ([Reporting](https://www.google.com/search?kgmid=/m/0cqd_rb) by Bernadette Christina \ No newline at end of file