Indonesia to roll out palm-based B40 in 2025

Pertamina is also now researching sorgum as the source of bioetanol. Sorgum can be cultivated in the land with minimal water source.

We have big land in eastern Indonesia that can cultivate sorgum

 

The B50 Program Needs a Supply of 24 Million Tons of CPO​


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Jakarta, PALM INDONESIA – Indonesia will gradually increase the number of biodiesel used in the country. The plan of the President-elect of the Republic of Indonesia for 2024-2029, Prabowo Subianto, will implement the 50% biodiesel mix program or B50 next year. Then how much CPO supply is needed for the B50 program?

Chairman of the Apindo Plantation Committee, Harry Hanawi, supports the president-elect Prabowo Subianto's program which will implement the B50 program. This is because this program supports national energy independence and security.

"With the B50 program, the biodiesel production capacity needed reaches 24 million kiloliters," said Harry.

The B50 program scheme can use two mix options, namely 50% FAME (B50) and B40 + 10% HVO (hydrotreated vegetable oil).

Then how much palm oil supply is needed for B50? With an installed capacity of 24 million kiloliters of biodiesel production, this is equivalent to 24 million tons of CPO (1 Kl = 0.98 tons).

Referring to GAPKI data, biodiesel consumption in the last three years has continued to increase. Until 2023, biodiesel consumption will reach 10.6 million tons. Higher than 2022 by 9 million tons and 2021 by 7.3 million tons.

Currently, the use of biodiesel in 2023 has exceeded the use for food. The total domestic demand for palm oil reached 23.2 million tons for the use of biodiesel, oleochemicals, and food.

Harry Hanawi said the B35 policy is targeted to absorb 13.41 million kiloliters of biodiesel. Then it can reduce greenhouse gas emissions by 35 million tons of CO2. The next positive impact is increasing government tax revenue through Corporate Income Tax and VAT.

Minister of Agriculture Andi Amran Sulaiman conducted a soft launch of Biodiesel B50 in South Kalimantan and recorded the history of national energy independence which is Indonesia's big dream for the next 5-10 years.

"This is a big idea, Mr. President now and Mr. President-elect, Indonesia will become a food barn and energy independent. These two forces can shake the world," said the Minister of Agriculture at the PT. Jhonlin Agro Raya, Batulicin, Tanah Bumbu Regency, South Kalimantan, Sunday (18/8/2024).

In the future, it is believed that the need for palm-based biodiesel is very large, especially for domestic consumption in realizing national energy security. Based on statistical data from the Directorate General of Plantations, the 2023 Provisional Figures for Palm Oil have an area of 16.8 million ha with a production of 46.9 million tons.

 

Pertamina Ready to Increase Sorghum-Based Bioethanol Production​

Pertamina Ready to Scrape Sorghum-Based Bioethanol Production

Reporter: Filemon Agung | Editor: Handoyo .



KONTAN.CO.ID - JAKARTA.
PT Pertamina announced their readiness to increase sorghum-based bioethanol production after successfully completing the trial on Wednesday, July 24, 2024. This trial was carried out using two Toyota Flex Fuel Vehicles (FFV) vehicles.

President Commissioner of Pertamina, Simon Aloysius Mantiri, expressed his appreciation for the innovation of bioethanol green products that use sorghum raw materials.

He hopes that this innovation can be used more widely for various types of vehicles, so that it can reduce the emissions produced.

"I appreciate Pertamina's innovations and achievements. I have done a test drive by driving a Toyota FFV fueled by bioethanol. It feels the same as using fuel in general, everything is smooth and good," said Simon in a press release, Saturday (27/7).

Also Read: Pertamina and Toyota Trial 100% Bioethanol at GIIAS 2024

Production Process and Development Targets


Pertamina has produced as much as 150 liters of bioethanol from biomass waste, namely sorghum plant stems.

The biofuel production process uses distillation and dehydration equipment at Pertamina's Technology Innovation Laboratory facility.

Pertamina targets to increase bioethanol production from a laboratory scale to a larger scale.

The production of bioethanol from sorghum stems is not only a new renewable energy source for Indonesia, but also an innovation that produces fuel without competing with food.

Also Read: Pertamina NRE Targets Low Emission Business Growth

Pertamina's Support in the Automotive Sector


Simon also appreciated Pertamina's presence at the GIIAS 2024 event. According to him, this event is a platform for Pertamina to show its support for the progress of the automotive sector, especially in building an automotive ecosystem in Indonesia.

Pertamina exhibited superior products such as fuel oil (BBM), lubricating products, Green Energy petrol stations, collaborations with racing teams, and environmentally friendly fuel innovations.

"Through Pertamina's presence at GIIAS 2024, I hope that the automotive industry will always grow as well as Pertamina, which supports the presence of environmentally friendly green fuels," he said.

 

Indonesia begins testing to prepare ‘B50’ palm oil biodiesel mandate​

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JAKARTA (Aug 7): Indonesia is carrying out tests ahead of plans by the incoming government to increase the palm oil-based biodiesel blending mandate to 50%, from 35% now, a government official said, raising industry concerns over supplies for exports.

Under its 'B35' programme, Indonesia already has one of the world's highest biofuel mix mandates. The outgoing government of President Joko Widodo has plans to raise this to B40 next year.

Prabowo Subianto, who will take over from Widodo in October after winning the February election, has pledged to raise the mandate further to B50 to reduce oil imports, without setting a timeline.

Ahead of the presidential transition, the current administration has ordered the palm oil industry to prepare for B50 and conduct tests.

"A static test for B50 composition is being carried out by the energy ministry and several stakeholders," director general of renewable energy at the energy ministry Eniya Listiani Dewi told Reuters on Wednesday.

That will be followed by vehicle road tests, in a process that typically takes a year, she said, adding that the agriculture ministry is assessing palm oil supplies.

ndonesian biofuel producers association APROBI said B50 would require the industry to invest in new processing capacity.

Indonesia's biggest palm oil producers association GAPKI has warned that a higher mix could hurt exports amid stagnating production.

Domestic palm oil consumption has grown 7.6% on average since 2019, according to GAPKI, driven in part by policies including biodiesel mandates and compulsory domestic sales for cooking oil.

Over the same period, output has risen less than 1% annually in Indonesia, the world's top producer and exporter of palm oil.

"As current production rate has stagnated, it is better to maintain B35, and if gasoil (diesel) is cheaper, why should we force ourself?" GAPKI Chairman Eddy Martono told Reuters.

GAPKI has also questioned the wisdom of plans to implement the B40 mandate in 2025, suggesting that authorities only raise the mix if export prices are less profitable.

The B35 mandate will use 11 million metric tons of crude palm oil (CPO) this year, rising to 14 million tons under B40, according to APROBI.

B50 will consume an estimated 18 millions tons of CPO, which could hurt domestic cooking oil prices and exports, as well as government revenues from exports, Martono said.

He urged government to improve production by accelerating a smallholders replanting programme or setting up a dedicated area for biodiesel feedstock before raising the mandate further.

 
What's the price of pure gasoline and pure biodiesel ?
 
What's the price of pure gasoline and pure biodiesel ?
We have subsidize and non subsidized gasoline. Subsided gasoline is 0.65 USD per litter while non subsidized fluctuated following oil price.

There is no pure biodiesel in market yet, but diesel in Indonesia is sold under B35 currently.

We are easy doing this since Pertamina dominate the gas station entire Indonesia, despite it is still under market system and some foreign oil and companies like Petronas enter the gas station business. Petronas already lost the battle and leave Indonesia gas station business as well other foreign oil and gas company.
 

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