Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry said.

If carried out, the B40 mandate might increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials could be completed in December, so that complete application of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to meet B40 need, with set up capacity expected to increase to 20 million KL every year next year from 18 million KL now.

"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps needed this year, he added.

Indonesia's most significant palm oil association GAPKI stated a decrease in exports suggested there would materials to provide the B40 required for now.

But the industry would need to examine "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make providing the domestic market less viable.

Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are expected to decrease by 2.47% to 29.5 million heaps as domestic intake rose, driven by biodiesel required.

The ministry had actually checked the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier this week, while preparing to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati