Indonesia begins testing to prepare ‘B50’ palm oil biodiesel mandate

Published Aug 9, 2024

Tridge summary

Indonesia is planning to increase its palm oil-based biodiesel blending mandate from 35% to 50% as part of a new government initiative aimed at reducing oil imports. The current administration is testing the compatibility of B50 biodiesel and assessing palm oil supplies in preparation for the transition. However, the move has raised concerns within the palm oil industry about potential supply shortages for exports, as domestic consumption continues to grow while production remains stagnant. The industry fears that the higher biodiesel mix could negatively impact export prices and domestic cooking oil prices, and has called for measures to boost production before the mandate is increased.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Indonesia is carrying out tests ahead of plans by the incoming government to increase the palm oil-based biodiesel blending mandate to 50%, from 35% now, a government official said, raising industry concerns over supplies for exports. Under its ‘B35’ programme, Indonesia already has one of the world’s highest biofuel mix mandates. The outgoing government of President Joko Widodo has plans to raise this to B40 next year. Prabowo Subianto, who will take over from Widodo in October after winning the February election, has pledged to raise the mandate further to B50 to reduce oil imports, without setting a timeline. Ahead of the presidential transition, the current administration has ordered the palm oil industry to prepare for B50 and conduct tests. “A static test for B50 composition is being carried out by the energy ministry and several stakeholders,” director general of renewable energy at the energy ministry Eniya Listiani Dewi told Reuters on Wednesday. That will be followed by ...
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