KARAWANG, Indonesia: Indonesia's mandate to raise the biodiesel blend to 50% palm oil-based fuel from 40% will increase crude palm oil use to between 16.3 million and 17 million metric tons from 15.2 million tons, Energy Minister Bahlil Lahadalia said on Thursday.
The world's largest palm oil producer last week launched its B50 biodiesel programme, although industry participants are still awaiting revised biodiesel allocations from the government.
* Bahlil made the remarks at a ceremony in Karawang in West Java province, attended by President Prabowo Subianto.
* The programme, among the largest mandatory biodiesel blending schemes, is designed to reduce Indonesia's reliance on imported diesel fuel.
* Prabowo said Indonesia was leading global efforts to reduce carbon emissions.
* He said he had pushed for a B100 mandate, but ministers had advised him that a 50% palm oil blend was sufficient to eliminate imports. He added that authorities should continue pursuing a 60% blend.
* Bahlil said the government would begin research into a 60% mix.
* Raising the blend to 50% is expected to reduce this year's import bill by 170 trillion rupiah ($9.41 billion), compared with savings of about 133 trillion rupiah in 2025, energy ministry data show.
* Indonesia allocated 15.64 million kilolitres of biodiesel under its B40 programme this year, 4.68% above last year's consumption of 14.94 million kilolitres.
* Indonesia will require 16.7 million to 18 million kilolitres of fatty acid methyl ester (FAME) under the new mandate, an energy ministry official said on Thursday.
* The ministry has yet to issue additional quotas for the B50 programme.
* Businesses will have until the end of September to use up remaining B40 stocks. - Reuters
