JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 said.
If implemented, the B40 mandate could increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be completed in December, so that complete application of B40 could be brought 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 capacity to satisfy B40 demand, with set up capacity expected to increase to 20 million KL every year next year from 18 million KL now.
"However we will require more raw products to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he added.
Indonesia's biggest palm oil association GAPKI said a decrease in exports indicated there would be enough basic materials to provide the B40 mandate for now.
But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono stated, referring to 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 loads in 2024, a 2.26% increase from in 2015, while exports are expected to decrease by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel required.
The ministry had evaluated the biodiesel, with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on agriculture equipment, power plants and in the shipping industry, 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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