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Indonesia launches B30 biodiesel

Christian Fernsby |
Indonesia on Monday launched biodiesel containing 30% palm based fuel, the highest mandatory mix in the world.

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President Joko Widodo said so-called “B30” biodiesel would allow Indonesia to cut its fossil fuel imports by 63 trillion rupiah ($4.5 billion) a year, up from 43.8 trillion rupiah saved in 2019 from existing B20 fuels.

“This will improve our current account deficit and increase our import substitution,” Widodo said at the launch.

“Indonesia is recorded as the first country to implement B30 in the world,” the energy ministry said on Monday, noting that its use will be mandatory from January 1.

The program has already driven up price expectations for the edible oil as it would bolster demand at a time when output is forecast to slow, due to drought and haze from forest fires.

The government has allocated 9.59 million kilolitres (KL) of FAME for the B30 mandate in 2020, up from 6.63 million KL this year.

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