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 implemented, the B40 required might increase biodiesel usage to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials could be finished in December, so that full implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to meet B40 demand, with set up capability expected to increase to 20 million KL yearly next year from 18 million KL now.
"However we will need more raw materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he included.
Indonesia's most significant palm oil association GAPKI stated a decline in exports meant there would suffice basic materials to provide the B40 required in the meantime.
But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make the domestic market less feasible.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic consumption increased, driven by biodiesel required.
The ministry had actually evaluated the biodiesel, combined with 40% of palm oil, on a train for the first time previously today, while planning to evaluate the B40 mix on agriculture machinery, power plants 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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