The Ministry of Energy and Mineral Resources (ESDM) has announced the need for seven to nine additional biodiesel plants to meet production targets for B50 fuel, a diesel blend containing 50 percent palm oil-derived biodiesel.
“The current domestic production of 15.8 million kiloliters needs to increase by an additional 3.9 million kiloliters to achieve the B50 goal,” Edi Wibowo, Director of Bioenergy at the ESDM ministry, said while adressing the Indonesia Palm Oil Conference (IPOC) 2024 in Bali on Thursday, November 7, 2024.
He highlighted the investment potential for these new facilities, estimating a capital requirement of US$360 million to make B50 a reality.
He mentioned that if the production capacity remains unchanged, the B50 implementation might be delayed.
With the B40 program set to roll out in early January 2025, ESDM is currently addressing a production shortfall of 0.3 million kiloliters.
This gap could be bridged by encouraging 24 existing Biofuel Business Entities to increase output.
Indonesia is on track to implement B50 by 2026. ESDM Minister Bahlil Lahadalia stated that the ministry is also developing a roadmap toward achieving B100 fuel, aiming for energy self-sufficiency in the long term.
The country currently mandates the use of B35, a fuel blend with 35 percent biodiesel from palm oil, which was introduced on February 1, 2023.
