Indonesian government says B50 needs 20m kilolitres of CPO per year

Published Oct 24, 2024

Tridge summary

Indonesia's agriculture ministry has announced plans to increase the biodiesel blend from 35% to 50% (B50), but to achieve this, the country needs to produce at least 20 million kiloliters of crude palm oil (CPO) per year. Currently, the biodiesel industry's installed capacity is around 17 to 18 million kiloliters, and the government is contemplating reallocating export supplies to the European market to meet domestic CPO demands. However, this move could potentially impact the country's exchange rate and trading partnerships with Europe. Experts recommend that the B50 program should be coupled with an increase in domestic CPO production to maintain a balance between the energy and food sectors.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The country’s agriculture ministry has said Indonesia needs to achieve 20 million kiloliters of crude palm oil (CPO) production per year to implement the B50 program, which calls for 50 percent use of biodiesel. Muhammad Fauzan Ridha, chairman of the international marketing working group at the ministry’s Directorate General of Plantations, said the installed capacity of the biodiesel industry needs to be around 25 million kiloliters to achieve the B50 target. “Meanwhile, the installed capacity of our biodiesel industry is currently still in the range of 17 to 18 million kiloliters,” he said during a discussion on Wednesday. The biodiesel blend that is still used in Indonesia is B35. The government has said Indonesia is ready to increase the biodiesel blend from 35 percent (B35) to 40 percent (B40) in 2025 and is preparing for the introduction of B50. Ridha said the CPO production volume required for B35 is 13.4 million kiloliters, while for B40 it is 16.08 million kiloliters. He ...

Source: Oilworld