InfoSAWIT, JAKARTA – Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, expressed optimism that the B40 biodiesel program will officially launch on January 1, 2025. B40 is a biofuel blend consisting of 40% palm oil (CPO) and 60% diesel. This new program follows the successful implementation of B35, which blends 35% palm oil with diesel.
"B40 will start on January 1, and the program will continue to evolve toward B100 in stages," Bahlil said after a press conference on the Ministry of Economic Affairs’ Quick Win Program at the Four Seasons Hotel in South Jakarta.
Bahlil further explained that the next step is to develop a 100% biodiesel (B100) made entirely from palm oil. "We have completed the testing phase and are ready for implementation. God willing, the program will begin as scheduled," he added, as reported by InfoSAWIT from Kompas on Thursday, November 7, 2024.
Agus Cahyono Adi, Head of the Public Relations, Public Information Services, and Cooperation Bureau of ESDM, highlighted that the use of biodiesel has shown a significant upward trend in recent years. "This increase reflects the government's commitment to reducing reliance on fossil fuels and enhancing energy resilience through biodiesel. The biodiesel blending ratio will continue to rise from B35 to B40, and eventually to B50 and B60," Agus said in a press release from the Ministry of ESDM.
For reference, B50 consists of 50% palm oil and 50% diesel, while B60 includes 60% palm oil and 40% diesel.
According to ESDM data, biodiesel consumption reached 9.3 million kiloliters (KL) in 2021, increased to 10.45 million KL in 2022, and surged to 12.2 million KL in 2023, following the implementation of the mandatory B35 in August. This biodiesel program has not only contributed to economic benefits, such as saving the country’s foreign exchange by Rp 120.54 trillion, but also added Rp 15.82 trillion in value to CPO through biodiesel production. Additionally, it has created jobs for over 11,000 people (off-farm) and 1.5 million people (on-farm). (T2)
