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Indonesia releases domestic biodiesel allocations for 2024

Indonesia has announced its domestic biodiesel allocations for 2024, which are slightly higher than this year’s, as the country aims to achieve a nationwide 35% on-road biodiesel blending (B35) after nearly a year of delayed implementation.

The Ministry of Energy and Mineral Resources has allocated a total of 13.4 million kilolitres (kl), approximately 1.9% more than the 2023 allocation of 13.15 million kl.

State-owned Pertamina is set to blend 10.85 million kl of biodiesel in 2024, with 10.28 million kl going to its downstream subsidiary Pertamina Patra Niaga and 572,580 kl to Kilang Pertamina Internasional. Trading firm AKR Corporindo has been allocated 902,895 kl. The remaining allocation is distributed among 24 companies, including ExxonMobil Lubricants, Petromine Energy Trading, and SinarAlam.

Indonesia’s on-road biodiesel mandate was increased to B35 on February 1 this year, with the government enforcing B35 blending in August. The country aims to implement a B40 program by 2025.

In Indonesia, fuel suppliers purchase the biodiesel they are allocated to blend from producers at the price of gasoil. The largest biodiesel suppliers in Indonesia include Wilmar, Apical, KPN, and Musim Mas. The Oil Palm Plantation Fund Management Agency reimburses producers for the price difference between biodiesel and gasoil using funds collected through export levies on palm oil products, following the state-set formula price for palm methyl ester.

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