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Energy ministry increases biodiesel quota for 2024
Following a relatively successful 2023 in terms of biodiesel absorption, the government has revised up this year's B35 biodiesel quota by 2 percent to 13.41 million kL.
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A worker holds up freshly harvested oil palm fruits on April 29, 2023 at a plantation in Mesuji Raya village, Ogan Komering Ilir regency, South Sumatra. (Antara/Budi Candra Setya)
T
he government has increased the quota for subsidized 35 percent biodiesel (B35) to 13.41 million kiloliters (kL) this year, given the relatively high absorption of biodiesel in 2023.
The quota was increased around 2 percent compared to last year’s quota of 13.15 million kL, which was up 19 percent from the 2022 quota of 11.02 million kL.
The Energy and Mineral Resources Ministry's bioenergy director, Edi Wibowo, said the reason for increasing the quota was the successful delivery of last year’s mandatory B35 program.
“The volume of B35 distributed until December 2023 is 12.15 million kL, there were no significant obstacles,” Edi said on Saturday, as quoted by Bisnis.com.
Read also: Pertamina’s proposed biofuel may risk food security, state budget: Critics
Indonesia uses the world's highest proportion of palm oil in its biodiesel, with the mandatory program aiming to reduce the country’s reliance on imported diesel and ramp up demand for domestically produced vegetable oils.
The Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS) estimated on Jan. 31, 2023 that Rp 30.22 trillion (US$1.95 billion) would be needed to subsidize the distribution of biodiesel last year.
