Indonesia targets to introduce bio-diesel B60 in 2027
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The Indonesian government recently announced it would start preparing for the introduction of B60 biodiesel in 2027. The country's biodiesel is primarily used as transportation fuel, and B60 is likely to be a blend of 40% diesel and 60% biofuel (fatty acid methyl ester, FAME) made from palm oil. Indonesia has just adopted B50 in July this year. In the case of Indonesia state-owned Pertamina, the largest energy company in the country, B50 is reportedly available at 90% of the company's gas stations nationwide. Regarding the introduction of B60, several issues have also been pointed out. It is reported that if the FAME blend significantly exceeds 50%, fuel quality such as viscosity changes, and the burden on engines reportedly increases. Improvements, such as including hydrotreated vegetable oil (HVO) biofuel, are being considered. Furthermore, there are strong concerns about a shortage in palm oil and FAME production. If the domestic allocation of palm oil significantly increases, exports will decrease, and its impact on foreign exchange earnings is also being watched with caution. Indonesia is the world's largest palm oil producer and exporter. |