Biodiesel allotment decree was waited for by market
Indonesia had actually prepared to launch greater biodiesel mix on Jan. 1
Palm oil standard agreement increased 1% after previous fall
Government goes for 50% biodiesel mix in 2026
(Recasts with energy minister's comment)
By Bernadette Christina and Fransiska Nangoy
JAKARTA, Jan 3 (Reuters) - Indonesia Energy and Mineral Resources Minister signed a decree on Friday allocating 15.6 million kilolitres (KL) of biodiesel for 2025 distribution, while offering the industry up until completion of next month to adjust to the higher level of the fuel in the mix.
Indonesia, the world's biggest exporter of palm oil, had planned to launch the obligatory requirement of 40% palm oil fuel in biodiesel on Jan. 1, up from 35% now.
"The ministerial policy has been signed," the minister Bahlil Lahadalia informed reporters, including the government was working to increase the necessary biodiesel mix to 50% next year.
Eniya Listiani Dewi, a ministry senior authorities, said biodiesel manufacturers and fuel retailers will be provided till Feb. 28 to adapt to the B40 mix. She stated the delay was because of technical challenges connected to aids for the fuel.
The non-implementation on Jan. 1. had actually led to a 2.6% drop in the Malaysian palm oil standard agreement on Thursday. On Friday, it recuperated by around 1%.
Fuel retailers and biodiesel had said they were unable to draw up contracts for biodiesel circulation without the decree.
The biodiesel allocation for 2025 suggested an increase from 2024's estimated biodiesel intake of 12.98 KL, ministry data revealed on Friday.
Of the overall allotment for this year, 7.55 million KL is for the general public service commitment (PSO), which covers sectors such as public transport, whose sales will be subsidised by the nation's palm oil fund.
"The staying allocations will be cost market rate. The non-PSO allotment is set at 8.07 million KL," Bahlil stated, adding the fund might not subsidise the rate space between the palm oil and nonrenewable fuel sources for the general allocation.
BPDPKS, the firm in charge of gathering and managing the palm oil funds, approximated in November B40 would need a 68% aid increase.
To help finance that, Indonesia plans to increase its export levy for unrefined palm oil (CPO) to 10% from the existing 7.5%, but for that to happen, another official policy is required. (Reporting by Bernadette Christina Munthe, Fransiska Nangoy, Dewi Kurniawati
1
Indonesia Signs 15.6 Mln Kilolitres Biodiesel Allocation For 2025
Senaida Luster edited this page 5 days ago