Indonesia could export 2M kl of biodiesel in an “optimistic scenario”
May 23, 2019
Indonesia may export up to 2M kilolitres (kl) of unblended biodiesel in 2019 in an “optimistic scenario”, the Indonesia Biodiesel Producers Association (APROBI) estimates.
However, in a “pessimistic scenario”, biodiesel exports would be around 1M to 1.2M kl, APROBI vice chairman Paulus Tjakrawan said in a Reuters report on 2 May. This would be down on 2018 levels of 1.78M kl.
The “pessimistic scenario” considered the EU setting countervailing duties on Indonesian biodiesel this year, Tjakrawan said, after it had launched an anti-subsidy investigation on Indonesian biofuel in late 2018.
Indonesia’s overall biodiesel exports were 173,542 kl in the first quarter of this year (mostly destined for the EU and China), up 78% from the same period last year, association data showed.
Indonesia resumed biodiesel exports to Europe early last year, after the World Trade Organization (WTO) ruled in its favour on challenges Jarkata made on previous anti-dumping duties imposed by the EU on its biodiesel shipments, Reuters said.
First quarter biodiesel consumption increased to 1.5M kl from about 660,000 kl a year earlier in Indonesia’s domestic market, APROBI data showed.
Palm oil-based fuel consumption jumped after the Indonesian government mandated the use of B20 fuel.
Indonesia had an estimated 6.2M kl of domestic biodiesel consumption in 2019.
APROBI chairman M P Tumanggor said the government was aiming to conduct a B30 biodiesel road test soon. The association estimated that a B30 implementation would increase domestic biodiesel consumption to as much as 10M kl.