Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the greatest palm oil manufacturer, is testing 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 required could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

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

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to fulfill B40 need, with installed capability anticipated to rise to 20 million KL each year next year from 18 million KL now.

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

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

Indonesia's biggest palm oil association GAPKI stated a decrease in exports indicated there would be enough raw materials to supply the B40 required for now.

But the industry would require to examine "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make supplying the domestic market less practical.

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

The ministry had checked the biodiesel, combined with 40% of palm oil, on a train for the first time previously today, while preparing to test the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati