Indonesia is exploring the possibility of imposing a 30% blending mandate (B30) on biodiesel in order to whittle down the country’s stocks of both biodiesel and palm oil.
President Joko Widodo had requested the Industry Minister Airlangga Hartarto to carry out a study on the production of B30 biodiesel, wrote The Jakarta Post wrote on 10 July.
Increasing the mandate form the current B20 to B30 would increase Indonesian biodiesel consumption by 500,000 tonnes/year, the minister said.
In 2017, the country’s biodiesel consumption was 2.5bn litres, far below the 3.5bn litres forecast that had been targeted for the year, according to Reuters.
Expanding biodiesel use was necessary as Indonesia faced what Hartarto called “increasing protectionism” in the traditional markets for Indonesia palm oil products.
Indonesia is the world’s largest palm oil producer, with an output of 38.17M tonnes in 2017, according to the Indonesian Palm Oil Producers Association (Gapki).