Testing begins in Indonesia for preparation of B50

08-Aug-2024 04:31 PM

Jakarta. Currently, Indonesia has a rule of using 35% palm oil in biodiesel production, while there is a plan to increase the blend of palm oil to 50% in future.

Testing has begun there for its preparation. This will help Indonesia to increase palm oil consumption in the domestic division and reduce the burden of huge surplus stock on the industry.

Critics say that if the expected increase in domestic production does not happen after the implementation of this rule, then the export of palm oil from Indonesia may be partially affected.

Anyway, the Indonesian government is encouraging the export of processed palm oil and RBD palmolein more than crude palm oil (CPO).

It is worth mentioning that Indonesia is the world's largest producer and exporter of palm oil, while India remains its largest buyer.

After implementing the B35 program, Indonesia has joined the list of top countries in the world where vegetable oils are used the most in biodiesel.

The outgoing government had planned to implement the B40 program to ensure the use of 40 percent palm oil in biodiesel production by next year.

But the ruling party lost the elections held in February 2024 and now a new government is going to be formed there in October.

The new government intends to go one step further and implement the rule of using 50 percent palm oil in biodiesel and the necessary preparations have also started for that.

Although no time limit has been fixed for the B50 program, it is understood that the level of use of palm oil in biodiesel will be gradually increased.

The Indonesian government wants to drastically reduce the import of crude mineral oil (petroleum), so it is insisting on increasing the blend of palm oil in biodiesel production regularly.