Area
Indonesia
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/06/2019
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Supported tests of transportation diesel with a bio-content of 30 percent, in line with renewed government efforts to develop the domestic market for palm oil, amid uncertain export prospects. Reportedly, plans to extend the ongoing B30 tests to trains, vessels and heavy machinery in the mining industry are under consideration. The Government envisaged increasing the prevailing mandatory blending requirement of 20 percent to 30 percent in 2020.
Notes
According to local media, Indonesia began testing transportation diesel with a bio-content of 30 percent, in line with renewed government efforts to further develop the domestic market for palm oil amid slowing growth in global demand. Reportedly, the Government is considering raising the current mandatory blending requirement of 20 percent to 30 percent, sometime next year (see also MPPU Jan. & May19). Industry experts estimate that a nationwide shift from B20 to B30 would push annual biodiesel consumption from currently 5.5 million tonnes to 8 million tonnes. Reportedly, the Energy Ministry plans to extend the ongoing B30 tests to trains, vessels and heavy machinery in the mining industry.
