In Malaysia, The Star reports Indonesia has started testing to prepare for the implementation of its “B50” biodiesel mandate, which aims to blend 50% palm oil-based biodiesel with conventional diesel. This initiative, set to build on the current B35 program, is one of the most ambitious biofuel mandates globally. The new mandate is part of incoming President Prabowo Subianto’s plan to reduce the country’s reliance on oil imports.
The energy ministry, alongside several stakeholders, is conducting static tests for the B50 blend, with vehicle road tests expected to follow. These tests, which typically take about a year, will help ensure the new blend’s viability for widespread use. Additionally, the agriculture ministry is assessing palm oil supplies to support the increased demand.
The move from B35 to B50 will significantly boost the consumption of crude palm oil, with estimates suggesting the need for approximately 18 million tonnes of CPO under the new mandate. This increase could have far-reaching effects, including potential impacts on domestic cooking oil prices, export levels, and government revenue from palm oil exports.
Tags: B50, biodiesel, Malaysia
Category: Policy
