The government of Indonesia intends to launch a biodiesel program with a 40% bio-content (B40) during the period 2021-2022. Road tests using B40 could begin in 2020. With biodiesel development, the archipelago aims at reducing its current account deficit due to energy import and at creating new opportunities for Indonesia’s palm oil output (43 Mt in 2018).
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. It is expected to reduce oil consumption by 8 Mt per year (165,000 bbl/d).
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.
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