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Indonesia looks to lower biodiesel allocation

A palm oil plantation
A palm oil plantation
Indonesia, the world's top palm oil maker, may lower its palm oil biofuel allocation over the next 12 months as the government adopts a more cautious fuel consumption outlook next year.
This is according to an official at the National Energy Council, as reported by Reuters.
The energy ministry may lower the allocation of fatty acid methyl ester (FAME) made from palm oil to 8.5 million kilolitres (kl), from current plan of 9.2 million kl, Djoko Siswanto, secretary general of the council told an industry event.
“We control this so there won't be too much excess supply of diesel fuel,” Djoko said, adding that Indonesia will not reduce the biofuel blend from its current mandate of 30%, known as B30.
The coronavirus pandemic has resulted in sluggish demand for fuel, including for diesel.
Despite the lower 2021 allocation outlook, Djoko added that the government maintained that between 2020 and 2025 demand for the biodiesel is estimated to increase by 2.9% per year on average.
A palm oil plantation