KUALA LUMPUR: Malaysia supports Indonesia’s commitment to proceed with the B40 biodiesel mandate in 2025 despite the recent delay in its implementation.
According to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, implementing a higher mandatory biodiesel blend significantly supports the palm oil industry.
“Indonesia produces about 48 million tones of palm oil annually, and nearly 25 per cent of that amount is used for biodiesel production.
“Can you imagine if they don’t use the biodiesel? So you will end up with that 25 per cent going to the world. There will be pricing pressure,” he told the media after a memorandum of collaboration (MoC) signing ceremony between FGV Holdings Bhd and the Malaysian Palm Oil Board (MPOB).
Johari said Indonesia is currently at the B40 biodiesel usage level, much higher than Malaysia, which is still at the B10 level.
Earlier, media reports said the Indonesian government has yet to implement the higher biodiesel blend, originally planned to begin on Jan 1, 2025, because industry participants are still waiting for the new regulations’ technical details, which has confused palm oil traders.
The Indonesian government plans to mandate a 40 per cent palm oil-based fuel blend in biodiesel starting Jan 1, 2025, known as B40, compared to the current 35 per cent blend.
