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The Indonesian Government Prepares an Allocation of 15.62 Million Kiloliters of Biodiesel by 2025



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The Indonesian Government Prepares an Allocation of 15.62 Million Kiloliters of Biodiesel by 2025

InfoSAWIT, JAKARTA – Indonesia, as the world's largest producer of palm oil, reaffirms its commitment to renewable energy by allocating 15.62 million kiloliters of palm oil-based biodiesel for mixing with diesel fuel in 2025. This information was conveyed by Eniya Listiani Dewi, Director General of New and Renewable Energy at the Ministry of Energy and Mineral Resources, as quoted by InfoSAWIT from Bloomberg on Monday (30/12/2024).

This step is part of the government's efforts to strengthen the implementation of the B40 program, which is a policy to mix 40% biodiesel into diesel, scheduled to be fully operational next year. Currently, the Ministry of Energy and Mineral Resources is in the final stages of deciding the allocation of biodiesel.

"We are finalizing the decision on the biodiesel allocation for the B40 program next year," said Eniya.

The B40 program aims not only to reduce dependence on fossil fuel imports but also to support Indonesia's carbon emission reduction targets. As a country with extensive palm oil plantations, biodiesel is a strategic choice for diversifying energy while utilizing domestic resources.

According to data, the implementation of this policy is expected to absorb more domestic palm oil production while creating a more stable market for palm oil farmers. On the other hand, the government continues to face challenges related to infrastructure readiness and competitive biodiesel pricing in the global market.

Indonesia has implemented the B30 program since 2020 and has become a pioneer in high-blend biodiesel usage in Asia. The success of this program serves as a strong foundation for the government to increase the biodiesel blend percentage to 40%.

With a significant biodiesel allocation planned for 2025, Indonesia hopes to demonstrate leadership in the global transition to sustainable energy. The final decision regarding the allocation and implementation of this program is expected to be announced in the coming weeks.

The government is optimistic that the B40 policy will not only support environmental agendas but also strengthen Indonesia's position as a key player in the global biodiesel market. (T2)


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