JAKARTA, RAKYAT NEWS – The Indonesian PT Kilang Pertamina Internasional (KPI) is gearing up to produce B40 fuel, a biodiesel blend consisting of 40% palm oil and 60% diesel.

The company has designated its Plaju and Kasim refineries for this initiative, which is set to begin in 2025 with a production capacity of approximately 800,000 to 900,000 barrels per month.

Corporate Secretary Hermansyah Y Nasroen confirmed the readiness of the Plaju and Kasim refineries, which currently produce B35, a biodiesel blend with 35% palm oil content. “Both refineries are fully capable of blending B40 without requiring any technological modifications,” Hermansyah stated on Friday, January 3, 2025.

Indonesia, the world’s largest palm oil producer, is transitioning from B35 to B40 as part of its energy sustainability agenda. The government made the B40 mandate effective on January 1, 2025, requiring an annual biodiesel supply of 15.6 million kiloliters. This move aims to bolster energy security while promoting a greener economy.

The Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot, highlighted the importance of ensuring sufficient raw materials and a robust supply chain for nationwide B40 distribution. “We’ve been on the ground inspecting readiness to roll out B40 across diverse regions starting January 1,” Yuliot remarked in a statement issued earlier this week.

Yuliot also acknowledged the geographical challenges of Indonesia’s vast archipelago in implementing B40. “For instance, hotter areas like Dumai or colder highlands might require adjustments in logistics and storage by Pertamina and other fuel enterprises,” he noted.

Pertamina’s initiative aligns with the government’s commitment to sustainability, energy independence, and reducing reliance on fossil fuels. By utilizing locally produced palm oil, the program also supports Indonesia’s domestic agricultural sector while minimizing greenhouse gas emissions.

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