Indonesia to start road tests for 'B50' biodiesel next month, considering selective implementation
Indonesia will begin road tests for 'B50' biodiesel, which contains 50% palm oil, in early December. The government is considering selective implementation of the B50 mandate, focusing on public service sectors due to supply concerns. The aim is to raise palm oil content from 40% to 50% to reduce reliance on imported fuel. Tests will also be conducted on trains, ships, and machinery, with a transparent review of technical issues, pricing, and supply availability planned.
Tests will also be carried out on trains, ships, machinery
Government pledges transparent review of B50 implementation
Considering exemption for non-public service sectors amid supply concerns
By Bernadette Christina
NUSA DUA, Indonesia, Nov 13 (Reuters) - Indonesia will start road testing vehicles using biodiesel with palm oil content of 50% in early December as the government considers whether to implement the “B50” mandate only in certain sectors, energy ministry official Eniya Listiani Dewi said on Thursday.
The government aims to introduce the B50 standard in the second half of next year, raising palm oil content from 40% this year in an effort to reduce its reliance on imported fuel.
The tests will also be carried out on train engines, ships, mining equipment and generators, she said on the sidelines of an industry conference held on the resort island of Bali.
Eniya said the government will carefully review all aspects of B50 implementation, including technical issues, pricing and the availability of supply for the palm oil-based fuel, and will be transparent about its findings.
The government is considering whether to only implement B50 in so-called public service obligation sectors (PSO) such as public transport as well as some logistics facilities, due to concerns about Indonesia’s limited biodiesel production capacity.
“We had discussions on the possibility of increasing the blending to 50% for the PSO and reducing it for non-PSO sectors - we’ll examine that,” Eniya said.
“The challenge is in the upstream sector. We can’t implement simultaneously at 50%,” she added.
