Indonesia aiming to raise biodiesel blending mandate

Indonesia plans to raise its mandatory palm oil-based biodiesel blending to 40% in the next few years, Reuters reported.
The world's biggest palm oil producer raised mandatory blending from 30% to 35% in February.
"Right now we stay with B35, and then we do preparation for B40. When we feel (it is) ready, then we launch," Indonesian Energy Minister Arifin Tasrif said.
Arifin said Indonesia wants to maximise the use of domestic resources and reduce dependency on crude oil, and authorities have completed research and road tests for B40.
Eddy Abdurrachman, CEO of Indonesia's CPO fund agency that is in charge of providing biodiesel subsidy, said the B35 mandate had not been fully implemented as there were issues with some blending facilities that need to be upgraded.
The ministry is pushing the B35 mandate to be fully implemented by August 1.
Energy ministry official Edi Wibowo said biodiesel consumption as of June 25 stood at 5.2 million kilolitres, of 13.15 million kilolitres allocated for this year.
Indonesia's biodiesel policy and the likely emergence of the El Nino weather pattern could further strain global inventories of the most used cooking oil, lifting palm oil prices this year, according to leading industry officials and analysts.