Indonesia has set a goal to reach 100% green fuel production as an end-product of palm oil by 2022-2023. To achieve this, the government was seeking national and foreign investors to build additional refineries, especially in regions close to oil palm plantations in Sumatra and Kalimantan.
Indonesia is implementing 30% biodiesel policy in January 2020 which will increase the consumption of palm oil by 3 million tons for the entire year. By 2021, the government plans to execute B50 program.
The green fuel will be used solely for domestic consumption, in line with government’s attempt to reduce oil imports and boost domestic consumption of the commodity. At least 8 million hectares of oil palm plantations will be required to fulfill the goal. Currently, only 12% of the country’s refineries are producing biofuel.
The Indonesian government aims to ensure that palm oil-based biofuel is suitable for vehicles, while expanding the biodiesel program. Most vehicle engines are designed to run on mineral oil.
(Source: Jakarta Globe)