Indonesia may lower 2021 biodiesel allocation to 8.5 mln KL – Successful Farming

JAKARTA, Dec 16 (Reuters) – Indonesia, the world’s top palm
oil maker, may lower its palm oil biofuel allocation for 2021 as
the government adopted a more cautious fuel consumption outlook
next year, an official at the National Energy Council said on
Wednesday.

The energy ministry may lower the allocation of fatty acid
methyl ester (FAME) made from palm oil to 8.5 million kilolitres
(kl), from current plan of 9.2 million kl, Djoko Siswanto,
secretary general of the council told an industry event.

“We control this so there won’t be too much excess supply of
diesel fuel,” Djoko said, adding that Indonesia will not reduce
the biofuel blend from its current mandate of 30%, known as B30.

The coronavirus pandemic has resulted in sluggish demand for
fuel, including for diesel.

Despite the lower 2021 allocation outlook, Djoko added that
the government maintains that between 2020-2025 demand for the
biodiesel is estimated to increase by 2.9% per year on average.

The mandatory biodiesel program is top of President Joko
Widodo’s agenda to ensure a market for the country’s massive
palm oil production while reducing imports of fuel.
(Reporting by Bernadette Christina Munthe
Writing by Fransiska Nangoy
Editing by Louise Heavens)

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