Indonesia is preparing for the worst scenario if the European Union (EU) parliament’s draft of a ban on the use of palm oil in biofuels is approved by the European commission and council. (Reuters Photo/Samsul Said)

Indonesia 2017 Biodiesel Use to Reach 2.53m Kiloliters: Gov't Agency


NOVEMBER 03, 2017

Nusa Dua. Indonesia's unblended biodiesel consumption is expected to come in at 2.53 million kiloliters this year, said Dono Boestami, the chief executive of the Indonesia Estate Crop Fund, a government agency that overseas consumption of the fuel.

The annual figure would indicate a slowdown in consumption compared with the first half of the year, based on previous government data. Indonesia's unblended biodiesel use was at 1.67 million kiloliters in the first half of 2017, Indonesia's director general for new and renewable energy reported in August.

"There were some months where we missed the target from April to June due to technical issues," Boestami told Reuters on the sidelines of a palm oil industry conference in Bali on Thursday (02/11).

"We would like to increase the volume to reach 3.5 million kiloliters per year," he said, without specifying a timeline for the target.

Indonesia, the world's top producer of palm oil, is pushing to increase the usage of biodiesel to cut its oil import bill and curb greenhouse gas emissions. Tranportation and power plants account for most of Indonesia's biodiesel consumption.

Indonesia's B20 program – the standard set in 2016 – requires a minimum 20 percent blend of bio content in diesel fuel, up from 15 percent in 2015.

Indonesia started collecting a levy on its palm oil exports in 2015 – $50 per ton for crude palm oil and $30 for processed palm oil products – and uses part of it to help fund its biodiesel subsidies.

Boestami expects the fund's collection in 2018 to maintain similar levels to this year, as he forecasts for Indonesia's palm oil exports next year to remain unchanged.

The Indonesian Palm Oil Association on Thursday pegged the country's 2017 palm oil exports at 30 million tons, up 20 percent from last year.