This will delete the page "Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025"
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JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, 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 stated.
If implemented, the B40 mandate could increase biodiesel consumption 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 could be ended up in December, so that complete implementation of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to B40 demand, with installed capacity anticipated to increase to 20 million KL each year 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 industry would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tons needed this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports implied there would suffice raw products to provide the B40 required for now.
But the market would need to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel mandate.
The ministry had actually checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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