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Indonesia set for B35 implementation

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Indonesia aims to implement a 35% palm oil mix in biodiesel, known as B35, by the end of July to help absorb excess palm oil supply.
The world’s biggest palm oil producer currently has a mandatory 30% blend of palm oil-based fuel in its biodiesel and the government has been looking at raising it to 35% or 40% to support the price of local palm oil fruits.
The Southeast Asian country is struggling to cut palm oil inventories after a three-week export ban ending in May aimed at controlling domestic cooking oil prices had boosted stocks and weighed on palm fruit prices amid the peak harvest season.
Senior Energy Ministry official Dadan Kusdiana said the ministry had run laboratory testing for biodiesel containing up to 40% of palm oil fuel in biodiesel (B40).
“We will run a road test for B40. For now, B35 would be implemented,” Dadan said.
Senior Cabinet Minister Luhut Pandjaitan said authorities needed to make extra efforts to cut inventories and that an additional 2.5 million tonnes of palm oil could be absorbed if Indonesia implemented B40.
Indonesia’s palm oil stocks had climbed to 6.2 million tonnes following the ban, the chairman of industry group Indonesia Palm Oil Board Sahat Sinaga said.