Indonesia to introduce B25 from 2019

Reuters is reporting that Indonesia is planning increase its biodiesel mandate from its current rate of 20% to 25% from 2019. The move is meant to increase palm oil consumption and cut fuel imports.

According to 2015 legislation, Indonesia is to increase its biofuel mandate to 30% in 2020.

Indonesia is the world’s largest producer of palm oil, a product that features in dozens of consumer items and can be used to produce biodiesel. The EU has made moves to limit the importing of palm oil-derived biofuel in an effort reduce demand for the crop, which is often cited as a major cause of deforestation. Malaysia, the world's second-largest palm oil producer, denounced the measures as a ‘crop apartheid’.

The efficacy of a wholesale ban on palm oil biodiesel to reduce deforestation has been questioned, with a report finding that these policies tar sustainable and non-sustainable palm oil producers with the same brush.

Indonesian biofuel has also been accused of being ‘dumped’ in European markets. However, the EU recently lost a case in front of the European Court of Justice to maintain anti-dumping tariffs on Indonesian biofuels.