Indonesia to accelerate B30 program in anticipation of EU restrictions

  • The government has said Indonesia will accelerate the mandatory use of 30% blended biodiesel (B30) in anticipation of the European Union’s move to ban palm oil-based biofuel in its member countries.
  • Its mandatory use was set to take effect in 2020 but it was brought forward to Sep 19 in response to the drafting of the EU’s Renewable Energy Directive (RED) II that was prepared by the European Commission. It is currently being debated by EU leaders.
  • Indonesian Oil Palm Estate Fund (BPDP-KS) head Dono Soestami said in Jakarta on 27 Mar 19 that the policy was needed because the country needed to expand the domestic market for palm oil and its derivative products.
  • Indonesia introduced the mandatory use of 20% blended biodiesel (B20) in Sep 18 and the government is also studying the possibility using B100.
  • With the mandatory use of both B20 and B30, the domestic market is expected to absorb 9 million tons of crude palm oil.
  • In 2018, Indonesia exported 34.71 million tons of CPO, according to the Indonesian Palm Oil Association.

External Link: