Indonesia to introduce biodiesel B40 in Jan 2025
Indonesia plans to make the use of biodiesel B40 mandatory from Jan 1, 2025. A senior official of the Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) released its plan in August. Indonesia currently uses B35, which consists of 65% of diesel oil and 35% palm oil-based biodiesel. The government will increase the ratio of palm oil-based biodiesel to 40%.
Meanwhile, Indonesian president-elect Prabowo Subianto, who will hold his inauguration ceremony on Oct 20, has aimed to introduce B50, 50% palm oil-based biodiesel blending by early 2025. Nevertheless, officials in Indonesia's palm oil industry believe that the introduction of B50 in 2025 is unrealistic since the production system for biofuel to be blended is not in place yet and driving tests have not been sufficiently conducted.
One of the major reasons why the Indonesian government is promoting biodiesel is to improve national finances by expanding the use of domestically produced fuel resources instead of petroleum fuels, which are highly dependent on imports.