1 Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the palm oil manufacturer, is checking 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 implemented, the B40 required might increase biodiesel intake to up to 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 completed in December, so that complete execution 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 capability to meet B40 demand, with set up capability anticipated to rise to 20 million KL annually next year from 18 million KL now.

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

The biodiesel industry would need 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.

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

But the market would require to evaluate “which one would be better”, GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make providing the domestic market less practical.

Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are expected to decrease by 2.47% to 29.5 million tons as domestic consumption increased, driven by biodiesel required.

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