Indonesia expects its B40 biodiesel programme will reach full implementation shortly after delays at the start of the year.
Energy ministry official Eniya Listiani Dewi said the distribution of the palm oil-based biodiesel this year has reached around 1.2 million kilolitres.
Indonesia had planned to launch the mandatory B40 mix, containing 40% of palm oil fuel, from January 1 but faced some delays due to regulatory issues and so fuel distributors were given until the end of February as a transition period.
The blending previously contained 35% palm oil. Eniya said there will be no extension to the transition period.
The implementation of Indonesia’s higher mandatory biodiesel blend is closely watched by palm oil market participants as they gauge how the demand from the energy sector may affect Indonesia’s palm oil exports.
Indonesia, the world’s biggest palm oil producer, has allocated 15.6 million KL of biodiesel for distribution in 2025, up from around 13 million KL last year.
