Indonesia to Increase Palm Oil-Based Biodiesel in Diesel Fuel Blend to Meet Green Energy Targets

The bio-content of Indonesia’s palm oil-based biodiesel will need to be increased to 40% by 2024 to meet the country’s renewable energy targets, Reuters quoted a senior official on December 01. Indonesia currently has a mandatory biodiesel program with 30% palm oil content known as B30. However, plans to increase the palm content to 40% by 2021 were delayed due to cheaper fuel costs and record high palm price.
The National Energy Plan (RUEN) is Indonesia’s energy transition roadmap and the country is aiming to increase renewable energy use to 23% of total energy consumption by 2025. “The ministry will prepare a B40 blending mandatory regulation to ensure investment certainty,” Dadan Kusdiana, director general of the country’s energy ministry said at a virtual conference, adding that more studies and road tests were required. Indonesia’s energy ministry also said it would increase its 2021 biodiesel allocation to meet higher demand for fuel.