Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry stated.

If carried out, the B40 mandate could increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be completed in December, so that complete execution of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to satisfy B40 demand, with set up capacity expected to increase to 20 million KL each year next year from 18 million KL now.

"However we will need more raw materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry would require 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps required this year, he included.

Indonesia's biggest palm oil association GAPKI stated a decrease in exports implied there would be adequate raw materials to supply the B40 mandate in the meantime.

But the industry would require to examine "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic intake increased, driven by biodiesel mandate.

The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the first time previously today, while planning to check the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati