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Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung said that Indonesia currently needs 2.3 million tons of methanol to implement the biodiesel 50 (B50) program in 2026 upon the fact that domestic methanol production is only around 300 thousand tons.
"That means 2 million tons are still imported. So, we are pushing for this National Strategic Projects (PSN) bioethanol in Bojonegoro. That's what we are pursuing," Yuliot said on Friday, March 14, 2025.
Biodiesel B (such as B20, B30, B50, etc.) is a mixture of biofuel (vegetable oil or animal fat) with diesel fuel, where the number behind "B" indicates the percentage of biodiesel in the mixture. While the number describes the percentage of the mixture with diesel fuel.
Yuliot said that to implement B50 with a volume of 19.73 kiloliters (kl), 17.9 million tons of palm oil is needed and requires an additional land area of 2.3 million hectares (ha).
Meanwhile, to produce 23.67 million kl of B60, 21.5 million tons of palm oil and an additional 3.5 million ha of oil palm plantations are needed.
Then, to produce 39.45 million kl of B100, 35.9 million tons of palm oil are needed with an additional land area of 4.6 million ha.
Yuliot said that in an effort to increase land area, the government is opening up the possibility of utilizing community gardens and cooperatives to fulfill the implementation of B50-B100.
Meanwhile, incentive needs have been prepared worth Rp47.1 trillion (US$2.9 billion), with the current palm oil needs being around 14.3 million tons.
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