Biodiesel Supply Projected To Reach 10.15m KL This Year

JAKARTA – The use of bioenergy, especially biodiesel, has played a strategic role in the process of Indonesian energy transition from fossil-fuels to renewable energy.  Supported by the government policy, the consumption of biodiesel has seen a positive trend during the last 10 years.

“Biodiesel production saw a robust growth during the last 16 years. Its total installed production capacity reached 16.6 million kiloliter (KL) until 2021,” Paulus Tjakrawan, Executive Director of the Association of Indonesian Biofuel Producers (Aprobi) said in a press release recently.

Based on data from Aprobi, in 2020 the distribution of biodiesel 30 percent (B30) reached 8.43 million kiloliters, and in 2021 it reached 8.44 million kiloliters. “During the last two years it was affected by the outbreak of Covid-19 pandemic which has impacted our economic and social life. This year, the distribution of B30 is projected to reach 10.15 million kiloliters,” he said.

Paulus said that the consumption of palm oil for biodiesel production accounted for 15% of Indonesia’s total palm oil production of 48.09 million tons in 2021. This year, the consumption of palm oil for biodiesel production is projected to reach 17% of total production. The local consumption of palm oil is mostly for production of foods and cooking oil.

“The biodiesel has helped accelerate the implementation of national energy transition. The development of the palm oil-based energy as bio-hydrocarbon will continue. We can develop further the bio-hydrocarbon from palm oil into various kinds of bio-energy that includes biogas, bio-avtur, and biogasoline,” said Paulus.

He said that the use of B30 will reduce the greenhouse gas emissions at 22.59 million tons of CO2 during 2021. “The B30 program helps reduce emissions, strengthens our national energy security and reduces our reliance on fossil fuels, especially in the sector of transportation,” he said.

He pointed out that the use of biodiesel has also significantly saved foreign exchange. In terms of diesel fuel import, the B30 program saved Indonesia’s foreign exchange up to USD3.8 billion last year.

According to Paulus, the mandatory biodiesel program has been also effective in increasing the domestic absorption of palm oil when demand at the global market saw a declining trend. “In addition to that, the biodiesel use also helps increase the welfare of oil palm smallholders after a balance between domestic consumption and exports was created,” he said. (*)