PALMOILMAGAZINE, JAKARTA – As the world’s largest producer of palm oil, Indonesia reaffirms its commitment to renewable energy by allocating 15.62 million kiloliters of palm oil-based biodiesel for blending with diesel fuel in 2025. The announcement was made by Eniya Listiani Dewi, Director General of New and Renewable Energy at the Ministry of Energy and Mineral Resources.
This allocation is part of the government’s effort to implement the B40 program, a policy mandating a 40% biodiesel blend in diesel, which is set to be fully operational next year. The Ministry is currently finalizing the allocation process for the program.
“We are in the final stages of deciding the biodiesel allocation for the B40 program next year,” said Eniya as reported by Palmoilmagazine.com from Bloomberg on Monday, December 30, 2024.
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The B40 initiative aims not only to reduce dependence on imported fossil fuels but also to support Indonesia’s carbon emission reduction targets. With extensive palm oil plantations, biodiesel offers a strategic solution to diversify energy sources while maximizing domestic resources.
The policy is expected to absorb more locally produced palm oil, creating a stable market for palm oil farmers. However, challenges remain, particularly regarding infrastructure readiness and the competitiveness of biodiesel prices in the global market.
Indonesia has been implementing the B30 program since 2020, becoming a pioneer in high-blend biodiesel use in Asia. The program’s success has laid a strong foundation for the government to increase the blend percentage to 40%.
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With the significant biodiesel allocation for 2025, Indonesia aims to solidify its leadership in the global transition to sustainable energy. Final decisions regarding the allocation and execution of the program are expected to be announced in the coming weeks.
The government is optimistic that the B40 policy will not only advance its environmental agenda but also strengthen Indonesia’s position as a major player in the global biodiesel market. (P2)
