The bio-content of Indonesia’s palm oil-based biodiesel will need to be increased to 40% by 2024 to meet the country’s renewable energy targets, Reuters reported a senior official as saying on 1 December.
Indonesia currently has a mandatory biodiesel programme with 30% palm oil content known as B30. However, plans to increase the palm content to 40% by 2021 were delayed due to cheaper fuel costs and record high palm prices, Reuters wrote.
“The use of (only) B30 will not achieve the [National Energy Plan] RUEN target for 2025,” Dadan Kusdiana, the director general of the country's energy ministry, told a virtual conference.
RUEN is Indonesia’s energy transition roadmap and the country is aiming to increase renewable energy use to 23% of total energy consumption by 2025.
“The ministry will prepare a B40 blending mandatory regulation to ensure investment certainty,” Kusdiana said, adding that more studies and road tests were required.
Indonesia's energy ministry also said it would increase its 2021 biodiesel allocation to meet higher demand for fuel.