InfoSAWIT, JAKARTA – Trade Minister Budi Santoso highlighted the need for crude palm oil (CPO) as a primary raw material to support the implementation of the mandatory biodiesel 40 percent (B40). This evaluation aims to ensure the availability of raw materials domestically while regulating the optimal export ratio of CPO.
“We will first assess how much CPO is needed for B40. If necessary, we can adjust the CPO export ratio. Everything depends on the results of the needs assessment,” Budi stated during a press conference on the achievements of 2024 and the work program for 2025 in Jakarta.
B40 is a fuel consisting of a mixture of 60 percent diesel and 40 percent biofuel based on palm oil. This program is expected to support the green energy transition while strengthening the utilization of domestic resources.
Budi added that the Ministry of Trade (Kemendag) will continue to evaluate the raw material needs for B40 as well as the domestic cooking oil requirements. “Evaluations are conducted to ensure that the policies taken remain balanced. We must ensure that domestic needs are met, both for fuel and cooking oil,” he explained.
In 2025, the government targets a biodiesel production of B40 amounting to 15.6 million kiloliters (kl). Of this amount, 7.55 million kl is allocated for public service obligations (PSO), while 8.07 million kl is prepared for non-PSO needs.
The implementation of the mandatory B40 is regulated in the Minister of Energy and Mineral Resources Decree No. 341.K/EK.01/MEM.E/2024. This policy aims to expand the utilization of biofuels while supporting financing from the Palm Oil Plantation Fund Management Agency.
The distribution of biodiesel will involve 24 Biofuel Business Entities (BU BBN), two Oil Fuel Business Entities (BU BBM) for PSO and non-PSO, and 26 BU BBM specifically for non-PSO.
This program is part of the government's broader strategy to reduce dependence on fossil fuels while strengthening Indonesia's position as a leading global palm oil producer. However, Budi emphasized that the implementation of the program must align with meeting domestic needs.
“This step not only supports the energy transition but also strengthens the national economy by maximizing the potential of domestic resources,” he concluded. (T2)