JAKARTA, Oct 8 — Indonesia is forging ahead with its plan to make biodiesel containing 50 per cent palm oil-based biofuel, or B50, mandatory in 2026 in a bid to lower gasoil imports, said its Energy Minister Bahlil Lahadalia.
Top palm oil producer Indonesia currently has a mandatory biofuel content of 40 per cent and is working to increase the amount of palm oil in the blend to reduce its reliance on imported fossil fuels.
In a statement last night, he said that the government's plan was "to push for B50" in 2026, in a bid to stop gasoil imports.
Bahlil noted that last month, Indonesia could raise the mandatory mix to 45 per cent before shifting to B50.
The government completed laboratory tests on the B50 mix in August, an Energy Ministry official stated yesterday, and is now set to conduct road tests.
Adopting B50 would require 20.1 million kilolitres of palm oil-based biofuel per year for mixing with regular petroleum diesel, compared to 15.6 million kilolitres with B40, according to Energy Ministry data.
Indonesia's plans to expand the use of palm oil for domestic energy often affect global prices of the vegetable oil, as it sparks concerns that the world's top palm oil exporter will have less to ship overseas.
