Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.

If executed, the B40 required might increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials might be finished in December, so that full implementation of B40 could be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to meet B40 need, with set up capacity anticipated to increase to 20 million KL each year next year from 18 million KL now.

"However we will require more raw materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps needed this year, he included.

Indonesia's most significant palm oil association GAPKI stated a decrease in exports indicated there would suffice raw products to provide the B40 for now.

But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million lots as domestic consumption rose, driven by biodiesel mandate.

The ministry had actually checked the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati