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ESDM Minister: B40 Biodiesel Initiative Set To Commence On January 1, 2025
Thursday, 07 Nov 2024
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, expressed strong confidence that the 40 percent biodiesel initiative (B40) will commence on January 1, 2025. This program involves a fuel composition of 40 percent crude palm oil (CPO) and 60 percent diesel. Previously, the government implemented a B35 program, which incorporated 35 percent palm oil.
"B40 will launch on January 1, and the initiative will progressively advance towards B100," Bahlil stated following a press conference regarding the Quick Win Program proposal held at the Four Seasons Hotel in Kuningan, South Jakarta, on Sunday, November 3, 2024.
Bahlil indicated that the subsequent phase involves preparing for a 100 percent biodiesel (B100) model, which will exclusively utilize palm oil. "This will be executed in phases, and we will provide updates on our progress," he remarked. He also emphasized that the B40 program has undergone testing and is primed for implementation. "With God's blessing, it will commence on January 1, 2025. It has been tested and is ready for launch," Bahlil affirmed.
In addition, Agus Cahyono Adi, Head of the Communication, Public Information Services, and Cooperation Bureau of the Ministry of ESDM, disclosed that the adoption of biodiesel has been on the rise in recent years.
This increase reflects the government's dedication to diminishing dependence on fossil fuels and bolstering energy security through the utilization of biodiesel. The blending ratio is set to escalate, beginning with B35, advancing to B40, and ultimately reaching B50 and B60, as stated by Agus in a press release from the Ministry of Energy and Mineral Resources dated October 26, 2024.
To elucidate, B50 refers to a fuel composition consisting of 50 percent palm oil (CPO) and 50 percent diesel, while B60 denotes a blend of 60 percent palm oil (CPO) and 40 percent diesel. As reported by the Ministry of Energy and Mineral Resources, biodiesel production was recorded at 9.3 million kiloliters (KL) in 2021, which rose to 10.45 million KL in 2022.
In 2023, production further increased to 12.2 million KL, coinciding with the implementation of the B35 mandate in August.
The economic advantages of biodiesel production in 2023 included foreign exchange savings amounting to Rp 120.54 trillion, an enhancement in the value of crude palm oil (CPO) to biodiesel valued at Rp 15.82 trillion, and the generation of over 11,000 off-farm jobs alongside 1.5 million on-farm jobs.
