JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.
If implemented, the B40 required could increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.
"We hope the trials might be finished in December, so that complete implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to fulfill B40 need, with installed capability anticipated to increase to 20 million KL every year next year from 18 million KL now.
"However we will need more raw materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decrease in exports suggested there would be sufficient raw materials to supply the B40 required for now.
But the market would need to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make supplying the domestic market less practical.
Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million heaps as domestic usage increased, driven by biodiesel required.
The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while planning to evaluate the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)