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JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry said.
If carried out, the B40 required might increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be finished in December, so that complete application of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the industry had the to satisfy B40 demand, with installed capability expected to increase to 20 million KL each year next year from 18 million KL now.
"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots needed this year, he added.
Indonesia's biggest palm oil association GAPKI said a decrease in exports suggested there would suffice raw products to supply the B40 mandate for now.
But the market would require to examine "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic consumption rose, driven by biodiesel mandate.
The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the first time previously this week, while planning to check the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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