Biodiesel production in Indonesia exceeds target

10-Feb-2025 08:37 PM

The recent developments in Indonesia’s biodiesel production are significant. In 2024, Indonesia surpassed its biodiesel production target, producing 13.15 million kilolitres instead of the targeted 11.3 million kilolitres.

This was achieved by mandating a 35% palm oil blend in biodiesel production, a policy that was introduced in 2023.

Looking ahead, Indonesia plans to increase the blend to 40% (B40) by February 2025, which would be the highest biodiesel blending ratio globally.

With this new target, Indonesia aims to produce 15.6 million kilolitres of biodiesel in 2025, and it is expected to meet or exceed this target as well.

The shift towards higher palm oil blending in biodiesel has had positive environmental impacts, with the Indonesian government reporting a reduction of 147.61 million tons of CO2 emissions in 2024, surpassing the goal of 142 million tons.

This is a step toward the country’s efforts to reduce greenhouse gas emissions and transition to more sustainable energy sources.

Although increasing biodiesel production may reduce the exportable stock of palm oil, the government is not overly concerned, suggesting they believe the environmental and domestic energy benefits outweigh any potential export challenges.

This move reflects Indonesia’s significant commitment to renewable energy and sustainable practices, reinforcing its role as a major player in the global palm oil market while also addressing climate change through the reduction of carbon emissions.