Indonesia to make B40 biodiesel mandatory by 2025

Indonesia plans to make the use of B40 biodiesel (containing 40% palm oil) mandatory from 1 January 2025, a senior official from the country’s energy ministry has said. The move pushed palm oil prices to recent peaks.

Indonesia’s energy ministry estimates that the B40 directive, once implemented, will increase biodiesel consumption to 16 million cubic metres by 2025, up from 13 million cubic metres projected for this year. The Indonesian Biofuel Producers Association previously estimated that the B40 Directive would increase the amount of palm oil used for biodiesel in Indonesia to 13.9 million tonnes in 2025 from 11 million tonnes this year.