Indonesia to enforce B35 blending from 1 August

Indonesia's mandate of blending 35pc biodiesel (B35) with road transport fuel will be enforced from 1 August 2023, according to the director of bioenergy at the energy ministry Edi Wibowo.

But B35 has yet to implemented at three terminals as of 1 June, four months since the mandate was rolled out on 1 February. These terminals are currently in the process of upgrading facilities to support the B35 blending programme and will be completed by 1 August. Upgrading includes increasing storage tanks, pipes and other facilities, said Wibowo. The other 79 terminals across the country have already rolled out B35 fuel.

Indonesia's consumption of biodiesel has reached 5.2mn m³ out of a total of 13.15mn m³ or 40pc of the total allocation for 2023.

The government has also carried out road tests for B40 during July-December 2022 but the country is still reviewing the readiness of various stakeholders.

"For its [B40] implementation the government is still reviewing the readiness of related parties, biodiesel producers, diesel fuel retailers, consumer acceptance, infrastructure, as well as the availability of feedstock and incentives," said Wibowo. "We [are] also taking into account the balance of palm oil supplies for food, energy, exports and oleochemical purposes."

The biodiesel blending programme aims to strengthen Indonesia's energy security and to increase the country's renewable energy share to 23pc by 2025. But exports of palm oil products and derivatives must be maintained as palm oil is the largest contributor to Indonesia's foreign revenue, according to Wibowo.

By Ryan Ang