Area
Indonesia
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/08/2019
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Announced plans to increase the countrys mandatory biodiesel blending requirement to 30 percent in January 2020, and to 50 percent towards the end of that year. The planned shift would help to curb the nations energy imports and boost domestic palm oil uptake.
Notes
Local media confirmed that the Government is considering to further increase the biodiesel content of domestic transport diesel (see MPPU July19). Reportedly, the mandatory blending rate could be increased to 30 percent next January (from 20 percent at present) and further to 50 percent towards the end of 2020. Besides contributing to efforts to curb the nations energy imports, the plans are aimed at boosting domestic palm oil uptake at a time of uncertain palm oil export prospects. The shift to B30 is estimated to require a more than 50% increase in domestic biodiesel production, potentially absorbing an additional 3.5 million tonnes of palm oil in 2020. Market observers pointed out that the anticipated level of domestic palm oil consumption could lead to shortages on the global market.
