Indonesia Eyes B40 Biofuel Blend Between 2021 and 2022

Indonesia, the world’s largest palm oil producer, plans to implement a biodiesel program with 40% bio-content (B40) between 2021 and 2022.  Starting January next year, the country is set to bring in biodiesel with 30% bio-content through the B30 program, which sent palm prices higher on concern that it will export less palm oil, a feedstock for the fuel.  The government aims to start road tests using B40 next year, Luhut Pandjaitan, coordinating minister for Maritime and Investment Affairs, which oversees the energy ministry.

President Joko Widodo sees the biodiesel program as a way of offsetting a current account deficit caused by large energy imports, while also supporting demand for palm oil, one of Indonesia’s main commodity exports.  Widodo has asked for further expansion of the biodiesel program and ordered studies on mixing palm-based fuel with jet fuel.