Indonesia’s launch of its B50 biodiesel programme is expected to increase the country’s annual methanol requirement to about 2.5 million tonnes, prompting the government to accelerate domestic production of the key industrial chemical, Energy and Mineral Resources Minister Bahlil Lahadalia said.
Speaking after President Prabowo Subianto launched the B50 programme in Karawang, West Java, on Thursday, Bahlil said the higher biodiesel blend marks a major step towards strengthening the country’s energy security, voi.id reported.
He said the biggest immediate challenge would be ensuring sufficient methanol supplies, as the B50 programme significantly increases demand for the chemical used in biodiesel production. Under the programme, palm oil-based fuel is blended with diesel.
To reduce dependence on imported methanol, the government is preparing two domestic production projects. One will be developed in Bojonegoro, East Java, using natural gas as feedstock, while the second will be located in East Kalimantan and will be based on coal beneficiation.
According to Bahlil, expanding domestic methanol production is an important follow-up to the B50 rollout, as the government aims not only to reduce diesel imports but also to build a stronger domestic supply chain for biodiesel production.
He added that President Prabowo has directed the Ministry of Energy and Mineral Resources to begin studies on increasing the biodiesel blending mandate to B60.
Bahlil also said subsidised B50 fuel for domestic consumers will continue to be sold at Rp 6,800 per litre, with no increase in prices for subsidy beneficiaries.
