Indonesia’s biodiesel consumption in the first half of 2024 reached 6.12 million kilolitres, according to data from the energy ministry. As the world’s largest palm oil producer, Indonesia has allocated 13.4 million kilolitres of palm-oil-based biodiesel for its B35 blending mandate this year.
The government plans to increase the blended palm oil content in biodiesel from 35% to 40%, potentially raising biodiesel consumption to 16 million kilolitres in 2025. To support this transition, Indonesia is testing B40 fuel on trains and plans to pilot its use in agricultural machinery, power plants, and the shipping sector.
The Indonesian Biofuel Producers Association estimates that fulfilling the B40 mandate will require approximately 13.9 metric tons of crude palm oil next year.