JAKARTA, RAKYAT NEWS – The Indonesian Ministry of Trade is considering revising the export ratio of crude palm oil (CPO) to accommodate the implementation of the 40% biodiesel blend program, known as B40, which began on January 1, 2025.

The move comes as the demand for biodiesel is expected to rise significantly, requiring adjustments in domestic supply.

Trade Minister Budi Santoso stated that the government will assess the CPO needs arising from B40 implementation before deciding whether to adjust export ratios. “We will first analyze how much CPO is needed. If the ratio needs to change, we can make adjustments easily,” he said during an online press conference on Monday, January 6, 2025.

The B40 program is outlined in the Ministerial Decree of Energy and Mineral Resources (ESDM) No. 341.K/EK.01/MEM.E/2024. It mandates the use of biodiesel with a 40% palm oil content in diesel fuel, supported by funding from the Palm Oil Plantation Fund Management Agency.

Energy and Mineral Resources Minister Bahlil Lahadalia noted that the implementation of B40 would increase Indonesia’s biodiesel quota by 20% in 2025, from approximately 12.98 million kiloliters under B35 to 15.6 million kiloliters. This significant increase underscores the need for careful management of raw materials and supply chains.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung emphasized that the availability of raw materials and the efficiency of supply chains are critical for ensuring the success of the B40 program. He also acknowledged challenges, such as Indonesia’s diverse geography, which could impact biodiesel distribution and performance in different climates.

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