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 evaluating 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 executed, the B40 required could consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be ended up in December, so that complete implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to satisfy B40 demand, with installed capability expected to increase to 20 million KL every year next year from 18 million KL now.

"However we will need more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

The biodiesel industry would need 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million tons required this year, he added.

Indonesia's most significant palm oil association GAPKI stated a decrease in exports meant there would be sufficient raw products to provide the B40 mandate for now.

But the industry would require to evaluate "which one would be more valuable", 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 approximated to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are expected to decline by 2.47% to 29.5 million tons as domestic usage rose, driven by biodiesel mandate.

The ministry had tested the biodiesel, combined with 40% of palm oil, on a train for the first time earlier this week, while preparing to test the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati