Indonesia is moving forward with its plan to implement a 40% mandatory biodiesel mix using palm oil-based fuel (B40), set to begin on January 1, 2025, according to the country’s chief economic minister, reported Reuters.
As the world’s largest producer of palm oil, Indonesia currently uses a 35% palm oil-based biodiesel blend (B35). Minister Airlangga Hartarto emphasized that the B40 initiative represents a “concrete contribution” to global sustainability efforts, projecting a reduction of around 40 million metric tons of carbon dioxide emissions.
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To support the transition, Hartarto noted that Indonesia’s palm oil fund agency would bridge the cost gap between palm oil-based biodiesel and fossil fuels. The switch to B40 is expected to increase the country’s palm oil consumption for biodiesel production to 13.9 million metric tons, up from an estimated 11 million tons required for B35 this year, according to Indonesia’s biofuel producers association, APROBI.
