The Indonesian government is working on plans to cut costly oil imports and achieve energy self-sufficiency by boosting the use of domestic biofuels such as palm oil. More specifically, it supports plans to use 30% of the entire palm oil production for biofuel purposes. It is also studying the development and potential implementation of the B100 programme, which would require all regular domestic diesel fuels to be made entirely from palm oil-based biofuels upon its introduction.
Indonesia imports a significant portion of its crude oil requirements. The recent oil prices rise on international markets combined with the fall of the local currency (rupiah) has made imports more expensive. The development of the B100 diesel blending regulation would boost domestic palm oil consumption, support the rupiah and help to reduce diesel fuel imports.
The country has already implemented the B20 regulation, which was unveiled in August 2018 and required all regular domestic diesel fuels to contain at least a 20% biodiesel component starting from September 2018.
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