Indonesia aims at producing so called "green diesel" from palm oil in 2022, targeting an output of 3,700 million litres. The production could rise to 6,100 million litres in 2024. If biodiesel is produced with fatty acid methyl ester (FAME) from palm oil, "green diesel" is prepared by refining fossil crude oil and palm derivatives together. Indonesia state-owned oil and gas corporation Pertamina intends to build refineries which can produce "green diesel".
In November 2019, Indonesia has started a market trial of B30, as the use of the combustible will become mandatory from January 2020. Pertamina has reached a deal with 10 biofuel producers to supply with B30 ten of its fuel depots all over the archipelago.
The government expects to reduce oil consumption by 165,000 bbl/d and to create new opportunities for Indonesia’s palm oil output (43 Mt in 2018). The supply of "green diesel" is intended to be reserved for domestic market only. The decision to make B30 mandatory was taken in August 2019, after the European Parliament voted a resolution in 2017 to eliminate palm oil in biofuels. In 2018, Indonesia consumed 79 Mt (1.7 mb/d) of oil, with imports accounting for 65% of the total.