The Indonesian government recently announced plans to promote the production and use of biodiesel B50, i.e. to increase the proportion of biofuel in diesel to 50%. Agriculture Minister Andi Aman Suleiman said the policy is expected to drive up global palm oil (CPO) prices. The government plans to use about 5.3 million tons of CPO for B50 production and cut overall exports to 21 million tons from 26 million tons while maintaining exports to the European Union (2.3 million tons) and the U.S. (1.7 million tons) to drive up prices and boost farmers’ incomes.
Deputy Energy Minister Yuliot Tanjoo added that Indonesia already has enough fatty acid methyl ester production capacity to support the B50 program, and there is no need to expand oil palm plantations, only through the renewal of old trees to meet the new demand.The B50 program is expected to be formally launched next year, marking a further escalation of Indonesia’s biofuel strategy.
