Jakarta. The government continues to push for mandatory biodiesel usage, which has now reached B-35 and is being tested for B-40. The domestic biodiesel sales in 2023 amounted to 12.2 million kiloliters (KL).

The B-35 is a policy that increases the palm-oil-based biodiesel blend from 30 percent to 35 percent. B-40 will increase the blend to 40 percent.

"The government is steadfast in its promotion of mandatory biodiesel, having advanced to B-35 and currently under examination for B-40. The achievement of 12.2 million kiloliters in domestic biodiesel sales for 2023 undoubtedly impacts the absorption of CPO within the country," said Coordinating Minister for Economic Affairs Airlangga Hartarto during the National Coordination Meeting on the Sustainable Palm Oil Plantation National Action Plan at Hotel Indonesia Kempinski, Jakarta, on Thursday.

As the world's largest palm oil producer, with a total production of 56 million tons and exports of 26.33 million tons, palm oil has emerged as a pivotal commodity bolstering the national economy. In 2023, exports of palm oil and its derivatives reached US$ 28.45 billion, constituting 11.6 percent of total non-oil and gas exports, while employing 16.2 million direct and indirect workers, including smallholders.

"Palm oil serves as a catalyst for economic growth in palm oil-producing regions and fosters rural development, thereby mitigating poverty levels," Airlangga added.

During the 2024 presidential election presidential debate, Vice President-elect Gibran Rakabuming Raka pledged to enhance B-35 production and intends to elevate the blend to 40 percent. Gibran emphasized that the biodiesel policy has significantly aided Indonesia in reducing its oil imports.

Gibran stressed the necessity for Indonesia to persist in its energy transition towards renewables. “We should not rely on fossil fuel anymore. We shall continue to encourage the use of renewables, particularly those based on vegetable raw materials, such as bioethanol, Bioavtur [aviation fuel], and biodiesel,” Gibran said.