Jakarta: Preparations are on track for Indonesia’s mandatory 40 per cent biodiesel (B40) program, which is set to launch in 2025, Deputy Minister of Energy and Mineral Resources, Yuliot, has confirmed.
During a visit to Pertamina Refinery Unit II in Dumai, Riau, Yuliot said his team had reviewed the readiness of the biofuel industry. He noted that the fatty acid methyl ester (FAME) industry, which produces biofuel, is prepared for the program.
“We checked the preparations for B40 and saw that the industry is ready,” he said in a statement released on Saturday.
The program is expected to require about 15.6 million kiloliters of biodiesel each year. With biodiesel being supplied across Indonesia, ensuring a steady supply of raw materials and maintaining strong supply chains is a key focus.
Yuliot acknowledged that implementing B40 involves challenges beyond raw material availability. Indonesia’s varied geography also poses logistical difficulties.
“We are open to suggestions from businesses to help ensure a smooth rollout of B40,” he added.
He also encouraged input from Pertamina Patra Niaga, a subsidiary of the state-owned energy company Pertamina, and other businesses to address specific regional challenges. He pointed out that areas like Dumai, which are hot, and highland areas with cooler climates might require different preparations.
The Indonesian government is pushing forward with the B40 program as part of its strategy to strengthen energy security and promote sustainable energy sources. This effort aligns with President Prabowo Subianto’s Asta Cita vision, which prioritizes food and energy security.
The Ministry of Energy and Mineral Resources plans to launch the B40 program on January 1, 2025, with a target production of 15.62 million kiloliters.
B40 is a blend of 60 per cent diesel fuel and 40 per cent biofuel made from palm oil.
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