B40 biodiesel programme faces output strain, says Indonesia's palm oil body
This story was originally published at 19:24 IST on 19 May 2025
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MUMBAI – Indonesia's mandatory B40 biodiesel programme is facing serious challenges just months after its launch in January, especially with regard to the limited production capacity of biodiesel plants in the country, The Indonesian Palm Oil Association or GAPKI said in a press release.
This year, Indonesia implemented the B40 biodiesel programme that mandates 40% blending of palm oil-based biodiesel with diesel. The programme is a key part of Indonesia's renewable energy goals and aims to cut fossil fuel imports. So far, 4.3 million kilolitres of B40 have been distributed, with non-public-service obligation sectors contributing more than the public sectors.
"Production has reached around 80% of the installed production capacity. It shows that our production capacity is now tightening and needs to be increased soon to secure supply of B40 in the future to meet the rising need," said Edi Wibowo, bioenergy director at Indonesia's Ministry of Energy and Mineral Resources.
To anticipate rising demand, the government is seeking new investments from new partners to increase the production capacity of biodiesel and bioethanol plants, according to the release.
Government estimates show B40 can save up to 147.50 trillion Indonesian rupiah, or INR 766.50 billion, in foreign exchange. This is higher than the 122.98 trillion Indonesian rupiah, or INR 639.08 billion, saved under the earlier B35 programme. End
Reported by Anjali Lavania
Edited by Nishant Maher
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