Minister of Agriculture, Andi Amran Sulaiman, on Sunday, August 18, 2024, witnessed a successful trial of B50 biodiesel production at PT. Jhonlin Agro Raya’s biodiesel plant in Batulicin, Tanah Bumbu, South Kalimantan, marking a significant step toward national energy independence and supporting Indonesia’s vision for sustainable future energy.
“This is a happy day, as we’ve successfully tested B50, and the engine runs perfectly,” Amran said.
He emphasized that this trial is a crucial step toward realizing national energy independence, aligning with Indonesia’s vision for sustainable energy in the next 5-10 years.
Amran highlighted that the demand for palm oil-based biodiesel is substantial, particularly for domestic consumption to strengthen national energy security.
According to the 2023 provisional data from the Directorate General of Plantations, the Ministry of Agriculture, Indonesia has 16.8 million hectares of palm oil plantations, producing 46.9 million tons of palm oil.
Amran said further that Indonesia has been gradually increasing the biodiesel blend since 2015, starting with B15, then moving to B20 in 2019, B30 in 2022, and now B35 in 2023. The implementation of B50 is expected to play a key role in furthering this progress.
Andi Nur Alamsyah, Chairman of the B50 Working Group, said that B50 biodiesel is crucial for enhancing energy security, a vital component of national resilience. Moreover, it can reduce carbon emissions, improve the trade balance, and boost farmer welfare.
However, he acknowledged challenges in developing B50 biodiesel, not only in securing raw materials like Crude Palm Oil (CPO) but also in downstream processes. These challenges include increasing the installed capacity and improving the production efficiency of biodiesel plants up to 90 percent.
Alamsyah added that innovation and technology are necessary to adjust B50 specifications, revise biodiesel incentives, introduce new technologies, and enhance communication strategies and legal aspects, which are currently being strengthened.
“We are also working on adjusting the infrastructure and facilities to support the future B50 program,” he concluded.