Indonesia will officially begin its 40% palm oil-based biodiesel (B40) blending programme on 1 January, the government confirmed. The initiative, aimed at reducing carbon dioxide (COâ‚‚) emissions, is projected to cut emissions by up to 40 million tonnes per year, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
Speaking at the 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) on 1 December, Hartarto highlighted that the previous B35 biodiesel programme had already contributed to a reduction of approximately 32 million tonnes of COâ‚‚ emissions annually.
In response to the B40 programme, the Indonesian government has also approved an increase in the national palm oil production quota to meet the rising demand. This decision, announced on 29 November, comes as part of the country’s broader strategy to enhance its biodiesel use and support sustainability efforts.
Although Indonesia initially planned to implement the B40 programme between 2021 and 2022, high vegetable oil prices delayed its launch. The decision to move forward with B40 comes after challenges related to cost were addressed.