Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry stated.

If implemented, the B40 required might increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be ended up in December, so that full application of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to meet B40 need, with set up capability anticipated to increase to 20 million KL each year next year from 18 million KL now.

"However we will require more basic materials to satisfy B40 demand," Ernest Gunawan, the general of APROBI told Reuters on Wednesday.

The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he included.

Indonesia's most significant palm oil association GAPKI said a decline in exports suggested there would suffice basic materials to provide the B40 required for now.

But the market would need to assess "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make providing the domestic market less practical.

Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic usage rose, driven by biodiesel mandate.

The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati