Indonesia to Implement B35 Biodiesel from July 20

Indonesia plans to increase the content of palm oil-based fuel in its biodiesel to 35 percent (B35) from the current 30 percent starting on July 20, senior energy ministry official Dadan Kusdiana said on Friday, July 08.  The effort also aimed to cut palm oil inventories that swelled following a three-week ban on palm oil exports that ended on May 23.

The increase, the official said, would create additional demand for 727,804 kiloliters of the palm oil fuel this year, taking the full-year consumption to 10.88 million kiloliters.  The ministry would also launch a road test for B40 fuel. Senior cabinet minister Luhut Pandjaitan estimated that an additional 2.5 million tons of palm oil could be absorbed if Indonesia implemented B40.