Currently
the world's top palm oil producer, Indonesia uses B30, containing 30% palm
oil-based fuel. The overall palm oil-based fuel allocation for 2023 is
estimated at around 13 million kilolitres in 2023, he said. Indonesia's 2022
allocation was 11.03 kilolitres.
Indonesian President Joko Widodo told his cabinet earlier
this week to prepare the mechanism to implement B35 amid expectations that the
crude oil price would remain high next year.
"The
B35 policy is taken in anticipation of rising world oil prices and to reduce
imports, while on the other hand this policy also aims to increase the use of
renewable energy," ministry official Dadan Kusdiana said.
Southeast Asia's largest and most populous country is among
the region's top importers of fuel, but authorities said import bills have been
slashed significantly since Indonesia started expanding the portion of palm oil
in biodiesel.
The expectation of B35 implementation helped palm oil prices
in Malaysia higher, although some market participants were disappointed the
blend would be lower than the anticipated 40%.
The
energy ministry has been running trials for biodiesel containing 40% of fuel
made using palm oil.
"Ten out of 12 of the vehicles tested had completed the
road test with no significant issue and next we will determine the
specification for B35 biodiesel," Dadan added, referring to the B40
trials.
“Hopefully, the B35 program can be implemented starting
January 2023."
Indonesia is testing two formulation of B40, the first is a
mix of diesel with 40% fatty acid methyl esters (FAME) and the second a mix of
diesel with 30% FAME mixed with 10% green diesel made of refined, bleached and deodorized
palm oil (RBDPO).
