JAKARTA (Reuters) – Indonesia is studying the implementation of a biodiesel blend that contains 50% palm oil in 2026, and is also looking at a 3% blend for jet fuel next year, energy ministry official Eniya Listiani Dewi told parliament members on Tuesday.
The world’s top palm oil producer this year increased the mandatory mix of palm oil in biodiesel to 40% (B40) from 35% to reduce reliance on imported diesel fuel.
The state plantation fund is expected to distribute 35.47 trillion rupiah ($2.2 billion) to subsidise the country’s mandatory biodiesel programme, she said.
Around half of the 15.62 million kilolitres biodiesel expected to be sold this year will be subsidised, she added.
($1 = 16,280 rupiah)
(Reporting by Fransiska Nangoy, Bernadette Christina Munthe; Editing by John Mair)
