
JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry said.
If executed, the B40 mandate might increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be finished in December, so that full 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) stated the industry had the capability to fulfill B40 need, with set up capability anticipated to rise to 20 million KL yearly next year from 18 million KL now.
"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.
Indonesia's greatest palm oil association GAPKI stated a decrease in exports meant there would suffice raw materials to supply the B40 required for now.
But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less feasible.
Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% increase from last year, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic usage rose, driven by biodiesel mandate.
The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while planning to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)
