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1 Indonesia Plans Increase in Palm Oil based Biodiesel In 2025

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

If carried out, the B40 required might increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be finished in December, so that complete implementation of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the to fulfill B40 need, with set up capability expected to increase to 20 million KL each year next year from 18 million KL now.

"However we will require more raw products to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry would need 13.9 million metric heaps of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps needed this year, he included.

Indonesia's greatest palm oil association GAPKI stated a decline in exports indicated there would suffice raw products to provide the B40 required in the meantime.

But the market would need to examine "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make providing the domestic market less viable.

Indonesia's palm oil output is approximated 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 heaps as domestic consumption increased, driven by biodiesel mandate.

The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while preparing to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati