Indonesia to raise palm-based biodiesel mandate to 35%

Indonesia will increase biodiesel blending to 35% from January 1 to cut fuel imports amid high global energy prices and to shift to cleaner energy.
The South-East Asian state and the biggest palm oil producer has implemented the B30 programme, which mandates fossil gasoil to be blended with 30% palm oil-based fuel.
The estimated demand for biodiesel to support B35 implementation is 13.15 million kilolitres, or around a 19% increase compared to 2022 allocation of 11.03 million kilolitres," energy ministry spokesperson Agung Pribadi said.
Indonesia is estimated to consume 37.58 million kilolitres of diesel next year, of which 35% will be supplied by palm-based biodiesel.
The country's biodiesel industry has an installed capacity of 16.65 million kilolitres, the energy ministry said.
The energy ministry also set a new specification to improve the standards for biodiesel to assure consumers that higher biodiesel blending would not affect engine performance.
The government has been running road tests for biodiesel that is 40% palm oil since July 2022 and is expected to conclude the trial by end of this year.