Draft Concept for Mandatory B100 Biodiesel Utilization Now in the Pipeline

  • The Minister of Energy and Mineral Resources, Bahlil Lahadalia (“Minister”), has confirmed that the Ministry of Energy and Mineral Resources (“Ministry”) is currently preparing a draft concept for the development of 100% bio-diesel fuel (“B100”) as part of Indonesia’s energy self-sufficiency initiatives.
  • At the time of writing, Indonesia’s mandatory biodiesel product, which was first introduced on 1 February 2023, takes the form of 35% biodiesel (B35), which comprises a mixture of 35% Fatty Acid Methyl Esters (FAME) deriving from palm oil and 65% from biodiesel. However, the government is continuing to improve its advanced mandatory biodiesel products by increasing the proportion of palm oil substances to 40% (“B40”). In this regard, the Minister has affirmed the forthcoming mandatory utilization of B40 is set to be enforced by 1 January 2025.
  • Similarly, the Director-General of New, Renewable Energy and Energy Conservation at the Ministry, Eniya Listiani Dewi (“Director-General”), has further explained that in preparation for the enforcement of the aforementioned mandatory utilization of B40, the government is currently preparing the infrastructure that will be required in order to support this new policy (e.g. ports, shipping and logistics). In this regard, the Director-General has affirmed that this supporting infrastructure is being targeted for completion by December 2024.
  • In addition to the above-mentioned B40, it is interesting to note that the Director-General has also stated that the government is currently engaging in research and studies regarding the possible mandatory application of a 50% biodiesel fuel mixture percentage (“B50”) in the future. In line with this plan, technical studies that address the performances of engines using B50 are already being conducted. (ANT)
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  • The Minister of Energy and Mineral Resources, Bahlil Lahadalia (“Minister”), has confirmed that the Ministry of Energy and Mineral Resources (“Ministry”) is currently preparing a draft concept for the development of 100% bio-diesel fuel (“B100”) as part of Indonesia’s energy self-sufficiency initiatives.
  • At the time of writing, Indonesia’s mandatory biodiesel product, which was first introduced on 1 February 2023, takes the form of 35% biodiesel (B35), which comprises a mixture of 35% Fatty Acid Methyl Esters (FAME) deriving from palm oil and 65% from biodiesel. However, the government is continuing to improve its advanced mandatory biodiesel products by increasing the proportion of palm oil substances to 40% (“B40”). In this regard, the Minister has affirmed the forthcoming mandatory utilization of B40 is set to be enforced by 1 January 2025.
  • Similarly, the Director-General of New, Renewable Energy and Energy Conservation at the Ministry, Eniya Listiani Dewi (“Director-General”), has further explained that in preparation for the enforcement of the aforementioned mandatory utilization of B40, the government is currently preparing the infrastructure that will be required in order to support this new policy (e.g. ports, shipping and logistics). In this regard, the Director-General has affirmed that this supporting infrastructure is being targeted for completion by December 2024.
  • In addition to the above-mentioned B40, it is interesting to note that the Director-General has also stated that the government is currently engaging in research and studies regarding the possible mandatory application of a 50% biodiesel fuel mixture percentage (“B50”) in the future. In line with this plan, technical studies that address the performances of engines using B50 are already being conducted. (ANT)
......

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