JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If executed, the B40 required might increase biodiesel consumption to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be finished in December, so that complete execution of B40 could be performed 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 meet B40 demand, with set up capability expected to rise to 20 million KL annually next year from 18 million KL now.
"However we will need more raw products to meet B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would need 13.9 million metric lots of oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps needed this year, he included.
Indonesia's biggest palm oil association GAPKI stated a decrease in exports implied there would suffice basic materials to provide the B40 required in the meantime.
But the market would require to assess "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make supplying the domestic market less viable.
Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic consumption rose, driven by biodiesel required.
The ministry had actually tested the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier today, while preparing to check the B40 mix on agriculture machinery, 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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