JAKARTA (Reuters) -Indonesia is forging ahead with its plan to make biodiesel containing 50% palm oil-based biofuel, or B50, mandatory in 2026 in a bid to lower gasoil imports, its energy minister said.
Top palm oil producer Indonesia currently has a mandatory biofuel content of 40% and is working to increase the amount of palm oil in the blend to reduce its reliance on imported fossil fuels.
Minister Bahlil Lahadalia said in a statement late on Tuesday that the government’s plan was “to push for B50” in 2026, in a bid to stop gasoil imports.
He had said last month Indonesia could raise the mandatory mix to 45% before shifting to B50.
The government completed laboratory tests on the B50 mix in August, an energy ministry official said on Tuesday, and is now set to carry out road tests.
Adopting B50 would require 20.1 million kilolitres of palm oil-based biofuel a year for mixing with regular petroleum diesel, compared to 15.6 million KL with B40, energy ministry data shows.
Indonesia’s plans to expand the use of palm oil for domestic energy often affect global prices of the vegetable oil, as it sparks concerns that the world’s top palm oil exporter will have less to ship overseas.
(Reporting by Bernadette Christina; Editing by Martin Petty and John Mair)
