Jakarta – Indonesia is set to raise mandatory biodiesel blending to 35 per cent starting January 1, 2023, to reduce fuel imports amid high global energy prices and to shift to cleaner energy, the energy ministry said on Friday.
The world's biggest palm oil producer has since 2020 implemented the B30 programme, which mandates fossil gasoil to be blended with 30 per cent palm oil-based fuel, and has been planning to increase the use of palm-based fuel.
"The estimated demand for biodiesel to support B35 implementation is 13.15 million kilolitres, or around a 19 per cent increase compared to 2022 allocation of 11.03 million kilolitres," energy ministry spokesperson Agung Pribadi said in a statement on Friday.
Indonesia is estimated to consume 37.58 million kilolitres of diesel next year, of which 35 per cent 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 per cent palm oil since July 2022 and is expected to conclude the trial by end of this year.