Govt Will Start B40 Program In January 2025

JAKARTA – The Energy and Mineral Resources Ministry (MEMR) said that the government will start implementing the mandatory program of biodiesel 40 percent (B40) on 1 January 2025. The B40, which is a mixture of 60 percent fossil diesel fuel and 40 percent fatty acid methyl ester (FAME) from crude palm oil (CPO), will be an upgrading from the current mandatory program of B35.

“The bioenergy will become our priority. We’re now preparing the B40 for its mandatory implementation. Insya Allah (God willing) we’ll start on 1 January 2025,” the MEMR Director General of Renewable Energy and Energy Conservation, Eniya Listiani Dewi said in Jakarta on Tuesday (20/8/2025), after attending a meeting with the new Minister of Energy and Mineral Resources, Bahlil Lahadalia, who was just inaugurated by President Joko Widodo (Jokowi) several days ago.

According to Eniya, the supporting infrastructure for B40 has been prepared, such as seaports, shipping and logistics, which are expected to be finalized in Desember 2024.

Previously, before the cabinet reshuffle, Energy and Mineral Resources Minister Arifin Tasrif said that the government will hasten the implementation of B40 next year.

“This year we’ll still implement the B35. Insya Allah (God Willing), next year we’ll start implementing B40. It’s been approved,” Minister Arifin said in a press statement on Monday (5/8/2024).

According to Arifin, during the second quarter 2024, biodiesel (B35) production had reached 6.2 million kiloliters or 54.2% of the yearly target at 11.3 million kiloliters. “Later, through B40 program, the government will increase the use of palm oil-based biodiesel in various vehicles,” he said.

He said that after the test of B40 in cars four years ago, this year its test had been conducted in trains and agricultural equipment. “The next text will be soon conducted in mining industry and heavy equipment, ships, and power plants in Balikpapan, East  Kalimantan,” Arifin said, adding that  there will be a need of 16 million kiloliters of B40.

According to Arifin, besides the B40, the government is preparing a policy on the use of bioethanol for the blending of gasoline fuel. He said that bioethanol, which is produced from raw materials such as sugarcane and cassava, is potential to reduce carbon emissions and increase national energy resilience.

Arifin added that the increase of domestic biodiesel consumption will also bring positive impacts to the national economy, including the creation of job opportunities, and reduction of reliance on import of fossil fuels.

On a separate occasion, the Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono urged the government to increase the productivity of Indonesia’s oil palm plantations through the implementation of replanting program for smallholders’ plantations with a total area of 540,000 hectares during 2020-2022.

He said there is a need to increase the national production of palm oil to support the fulfillment of local need and for mandatory program B40. “GAPKI is also pushing for the expansion of oil palm plantation areas, which is necessary to fulfill the need for biodiesel production,” he said. (*)

Source: sawitkita.id