Indonesia’s Agriculture Minister Andi Amran Sulaiman has announced plans to implement B40 biodiesel starting in January 2025, transitioning from the current B35 standard. The new B40 blend will consist of 40% palm oil-based biodiesel and 60% fossil fuel, further enhancing the country’s commitment to renewable energy.
As the world’s largest consumer of biodiesel, Indonesia has been a leader in this sector. The upcoming B40 initiative not only aims to increase renewable energy usage but also to replace the existing B35 standard, reflecting the nation’s dedication to expanding its renewable energy portfolio.
Earlier this week, Minister Sulaiman stated that Indonesia has ample supplies of crude palm oil (CPO) to support the planned B50 biodiesel program, set to launch in 2026. With total CPO production around 46 million tons, he noted that only 5.3 million tons would be needed for B50 production. “Our CPO production is sufficient,” he remarked. “Allocating 5.3 million tons for B50 will not pose a problem.”
To prioritize local needs, the government is prepared to reduce the CPO export quota if necessary. “We prioritize domestic needs over exports,” Minister Sulaiman emphasized, indicating that any additional CPO needed for B50 will be sourced from export allocations.
The B50 biodiesel program will consist of a 50% blend of palm oil and diesel, following the B40 implementation. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that there are no significant obstacles hindering the production process for the upcoming B40 program.
This move to increase biodiesel blending from B35 to B40 is a vital step in Indonesia’s energy transition, aiming to decrease reliance on fossil fuels and enhance the use of renewable sources like palm oil.
Additionally, the Ministry of Energy and Mineral Resources is working on the necessary infrastructure to facilitate the transition from B40 to B50, which will further boost demand for CPO as a renewable fuel feedstock.
Through these strategic initiatives, Indonesia is reinforcing its position as a leader in sustainable energy, emphasizing its commitment to environmental sustainability and energy independence.
