Indonesia’s president-elect, Prabowo Subianto, plans to implement a mandatory 50% blending of palm oil-based biodiesel (B50) by early next year, which he estimates could reduce fuel imports by $20 billion annually. This initiative follows the government’s announcement to increase the blending rate to 40% by January 2025, up from the current 35%.
Prabowo, set to take office in October, stated, “We are at B35 now and we will accelerate to B40, B50.” The move comes as the palm oil industry prepares for this transition, with tests for the higher blending already underway.
However, the Indonesian Palm Oil Producers Association (GAPKI) expressed concerns that B50 cannot be implemented as planned due to insufficient testing. GAPKI’s chairman noted that achieving B50 would require significant preparation, including quality improvements to ensure fuel stability and prevent sediment formation during transportation and storage.
The biodiesel mandate is expected to consume approximately 18 million metric tons of crude palm oil, an increase from the 11 million metric tons used for B35 this year. Indonesia’s palm oil consumption has grown 7.6% annually since 2019, while production has only increased by less than 1% per year.
Prabowo’s administration also aims to develop palm-based jet fuel, although plans for a 3% biofuel blend in jet fuel by 2020 have faced delays.