Indonesia to Implement B40 Biodiesel by January 2025, Confident in CPO Stocks for Future B50 Production

In a significant move towards sustainable energy, Indonesia’s Agriculture Minister Andi Amran Sulaiman, announced the country’s plan to implement B40 biodiesel. This initiative is set to launch in January 2025, marking a key transition from the current B35 standard. B40 biodiesel is a blend comprising 40% palm oil-based biodiesel and 60% fossil fuel.

As the world’s leading user of biodiesel, Indonesia has established itself as a pioneer in this field. Their current nationwide standard is the B35 blend. The upcoming B40 biodiesel will not only enhance the use of renewable energy but also replace the existing B35 blend. This shift is a positive reflection of the country's commitment to increase its renewable energy portfolio.

Minister Sulaiman had earlier in the week emphasized that Indonesia has sufficient stocks of crude palm oil (CPO) to support the forthcoming B50 biodiesel program, scheduled for implementation by 2026. He noted that the country’s total CPO production is approximately 46 million tons, with only 5.3 million tons needed for B50 production. "Our CPO production is ample," he stated. "Even if we allocate 5.3 million tons for B50, it won't be a problem."

To prioritize domestic needs, the government plans to reduce the CPO export quota if necessary. "We prioritize domestic needs over exports," Minister Sulaiman explained. "If more CPO is required for B50 production, we will source it from the export quota."

The B50 biodiesel program mandates a blend of 50% palm oil and 50% diesel, which follows the upcoming B40 program. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Indonesia is prepared for the mandatory implementation of B40 biodiesel in 2025. The B40 program has encountered no significant obstacles during its production process.

The government's push to increase biodiesel blending from B35 to B40 is a crucial step towards energy transition. By reducing dependence on fossil fuels and transitioning to renewable energy sources like palm oil, Indonesia aims to contribute to a more sustainable future.

In addition, the Ministry of Energy and Mineral Resources is actively working on the necessary infrastructure to support the increase in biodiesel blending from B40 to B50. This transition will further bolster the demand for CPO as a basic material for renewable fuel.

With these strategic initiatives, Indonesia is positioning itself as a leader in sustainable energy, reinforcing its commitment to environmental responsibility and energy independence.