TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsB50 rollout requires more CPO output, industry warns
Producers say this year's additional demand is manageable, but stagnant yields, lower exports and shrinking biodiesel funds could challenge the mandate.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Indonesian President Prabowo Subianto gestures during a ceremony marking the start of the B50 biodiesel program which involves biodiesel containing 50 percent diesel made from palm oil, on July .9 in Karawang, West Java. (Reuters/Ajeng Dinar Ulfiana)
I
ndustry players say they can supply the additional crude palm oil (CPO) needed this year under the government’s latest biodiesel mandate but warn sustaining the policy will require significantly higher production in the years ahead.
The mandatory increase in palm-based biodiesel to a 50 percent blend from 40 percent, which took effect on July 1, is expected to lift domestic CPO consumption for biodiesel to between 16.3 million and 17 million tonnes annually.
Producers expect national CPO output of around 53 million tonnes in 2026, which should leave enough supply to fulfill the higher domestic demand for fuel.
“This year should be safe, because the additional 1.74 million tonnes needed for B50 can still be met from current production capacity,” Indonesian Palm Oil Association (GAPKI) chairman Eddy Martono told The Jakarta Post on Friday.
Read also: Indonesia rolls out B50 biodiesel mandate, lifting palm oil demand
Whether that remained the case next year would depend on production, Eddy said, noting that output could be affected if this year's El Nino weather pattern weighed on harvests.
To keep the B50 program running without disrupting exports or supplies to other downstream industries, the country needed to raise annual CPO production to between 55 million and 60 million tonnes, he added.
