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Indonesia to continue 50pc biodiesel blend in 2027

  • Märkte: Agriculture, Biofuels, Chemicals, Oil products
  • 17.09.26

Indonesia will continue implementing a 50pc biodiesel-fossil diesel blend (B50) target in 2027, the country's ministry of energy and mineral resources (ESDM) said at the sixth palm biodiesel conference in Bali today.

But the government will also consider adding 10pc of hydrotreated vegetable oil (HVO) into the diesel pool, on top of 50pc biodiesel next year, ESDM director general Eniya Listiani Dewi said.

Indonesia currently requires 5pc of HVO to be blended into the diesel fuel pool with a cetane number (CN) of 51. Domestic fuel sales for CN51 gasoil were at 1.1mn kilolitres, followed by 1.3mn kl for CN48 and 520,000kl for CN53 gasoil in 2025, according to ESDM data.

A ramp up to 10pc HVO blend for the entire diesel fuel pool appears ambitious, since the country currently lacks any dedicated HEFA production. State-controlled Pertamina can co-process up to 45,000 t/yr of HVO at its Dumai refinery, but domestically produced neat HVO is only planned to come to market in 2030, when it plans to bring a HEFA plant on line with roughly 890,000 t/yr total HVO and SAF production at its Plaju refinery in South Sumatra. The plant has not yet reached final investment decision, according to Argus records.

Indonesia will also set a minimum one-year period for further infrastructure and supply chain upgrades before targeting a higher biodiesel blend percentage, Dewi added. The country moved to B50 in July.

HVO is chemically identical to fossil diesel and can be used as a drop-in fuel without additional modifications to on-road vehicle engines, in contrast to biodiesel which requires further testing to ensure stable fuel use.


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