JAKARTA – The ministry of energy and mineral resources’ (MEMR) Renewable Energy and Energy Conservation Director General Eniya Listiani Dewi said that the oil palm plantation fund management board (BPDPKS) has ensured that once the mandatory program of biodiesel 40 percent (B40) is implemented, the national supply of crude palm oil (CPO) will be still surplus at around 4.0 million tons, despite no expansion of oil palm plantations.

Eniya said that the government is set to upgrade the current palm oil-based B35 program to B40 program in 2025. According to Eniya, the government has undertaken a test of B40 in the automotive sector. “The B40 has been tested for automotive sector. Now, it is being tested for non-automotive sector, such as ships, agricultural equipment, mining and trains. It will last until December this year,” she said on Friday (12/07/2024).

“It could be applied for automotive sector first. But it should be first confirmed to decide about its incentives and supply,” she said.

The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono also stated that the supply of CPO is still sufficient if the B40 mandatory program implemented. “The CPO supply is also sufficient to support the B40 test program in 2024,” he said.

According to Eddy, the need for CPO to support the B40 test this year will rise to 13 million tons. It rose by 2.4 million tons from the need of biodiesel production at 10.6 million tons in 2023.

The local consumption of CPO consists of the consumption for foods, oleochemical and biodiesel.

Assuming that the need for foods will increase to 10 – 11 million tons in 2023, the supply of CPO to meet the need for B40 test program is ensured sufficient. (*)

Source: sawitku.id