Indonesia plans to make 30% biodiesel blend mandatory, studies B100

  • While the government expanded the mandatory use of a 20% biodiesel blend (B20) in September, it plans to further boost domestic biodiesel consumption to absorb more crude palm oil (CPO) amid fluctuation in the global market price of the commodity.
  • Apart from improving the distribution of the B20 blend across to the country, the government is also carrying out research to increase the portion of biodiesel in the fuels rom 20% – 30% (B30) or even to 100% (B100).
  • The Energy and Mineral Resources Ministry’s oil and gas director general, Djoko Siswanto, was quoted by on 10 Dec 18 as saying that B100 fuel was being tested by the ministry.
  • State-owned oil and gas holding company Pertamina supply chain operations manager Gema Iriandus Pahalawan further explained that three more biodiesel refineries would be developed, likely in Plaju in South Sumatra, Dumai in Riau and Balikpapan in East Kalimantan, to produce more biodiesel.
  • Gema said the production of B30 biodiesel was expected to be implemented, while the government was still improving the B20 distribution, which had reached 97% in Nov 18 and was planned to be completed in Dec 18.
  • Meanwhile, NH Korindo Sekuritas analyst Joni Wintarja said the government needed to expand the use of biodiesel to lift the declining price of palm oil in the global market.
  • He said Indonesia accounted for 56% of worldwide production of the commodity and for 57% of CPO exports.

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