Jakarta: Indonesia, the world’s largest palm oil producer, is set to create a watchdog to oversee the distribution of B40 biodiesel, a senior government official announced. B40 biodiesel is a blend containing 40 per cent palm oil, and Indonesia has been progressively increasing its palm oil blend mandate in recent years to promote green energy. Earlier this year, the country officially raised the blend requirement from 35 per cent to 40 per cent, reports JakartaGlobe.ID.
Eniya Listiani Dewi, Director-General for Renewables at the Energy Ministry, revealed that the government plans to deploy a special team to ensure compliance with the B40 mandate. This team, comprising officials from the ministry and the Oil Palm Plantation Funding Agency (BPDPKS), will verify that the distributed biodiesel meets the 40 per cent palm oil blend standard.
“We will deploy a team to monitor the B40 program on the ground starting next week,” Eniya said during the 2025 Beritasatu Economic Outlook forum in Jakarta on Thursday. She added, “We will thoroughly inspect the distributed biodiesel’s density, water content, and colour to ensure quality.”
Eniya clarified that the establishment of the watchdog is not due to past issues with the biodiesel program. “No, there were no problems in the past. However, since the B40 program does not include incentives, we believe it’s important to stay proactive,” she explained.
Indonesia aims to produce 15.6 million kiloliters of B40 biodiesel in 2025. According to government estimates, the B40 mandate could save the country up to Rp 147.5 trillion (approximately $9 billion) in foreign exchange by reducing diesel imports. This initiative underscores Indonesia’s commitment to advancing renewable energy and reducing reliance on fossil fuels.
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