The Indonesian government approved regulations regarding the use of biodiesel as a substitute for fossil fuel across all economic sectors in 2018.
Recently the South East Asian government mandated to mix 20% biodiesel with 80% fossil fuel (B20).
And at the end of last year the country launched biodiesel containing 30% palm-based fuel – the highest mandatory mix in the world.
This would allow Indonesia to slash its fossil fuel imports by $4.5 billion (€4 billion) a year.
Now the country’s state oil firm PT Pertamina will start producing 3,000 barrels of ‘green’ diesel made from 100% palm oil from June 2021. CEO Nicke Widyawati informed Parliament about the plans.
PT Pertamina then plans to gradually increase output to 6,000 barrels per day. The B100 will be produced at Pertamina’s Cilacap’s newly converted biorefinery. The fuel will be manufactured using hydrogenated vegetable oil made out of palm oil.
Countries like Indonesia and Malaysia have seen consumption slashed as the Covid-19 pandemic lockdown measures have lessened demand for fuel.
Indonesia is the world’s largest producer and exporter of palm oil. Together with Malaysia the two combined make up almost all of the world’s production and exports of palm oil.
Indonesia is also one of the world’s biggest consumers of palm oil – using it as both cooking oil and in biofuels.
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