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Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025

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JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel.

JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry stated.


If executed, the B40 mandate could increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.


"We hope the trials might be ended up in December, so that full application of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.


The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to satisfy B40 demand, with installed capacity anticipated to increase to 20 million KL yearly next year from 18 million KL now.


"However we will need more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.


The biodiesel industry would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads needed this year, he included.


Indonesia's greatest palm oil association GAPKI said a decrease in exports suggested there would suffice raw products to provide the B40 required in the meantime.


But the market would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less feasible.


Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million loads as domestic intake rose, driven by biodiesel required.


The ministry had checked the biodiesel, combined with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)

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