economy

Minister Of Energy And Mineral Resources: B40 Biodiesel Program To Start 1st January 2025

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, is optimistic that the 40 percent biodiesel initiative (B40) will launch on January 1, 2025. This B40 fuel consists of 40 percent palm oil (CPO) blended with 60 percent diesel. Previously, the government implemented a B35 program, which utilized 35 percent palm oil.

"B40 will kick off on January 1, and we will continue to advance towards B100," Bahlil shared after a press conference regarding the Quick Win Program proposal at the Four Seasons Hotel in Kuningan, South Jakarta, on Sunday, November 3, 2024.

He highlighted that the next phase involves preparing for a 100 percent biodiesel (B100) model, which will exclusively use palm oil. "This will be executed in stages, and we will keep you updated," he mentioned. Bahlil also emphasized that the B40 program has undergone testing and is set for rollout. "With God's blessing, it will commence on January 1, 2025. It has been tested and is ready to launch," he affirmed.

In addition, Agus Cahyono Adi, Head of the Communication, Public Information Services, and Cooperation Bureau of the Ministry of ESDM, noted that the adoption of biodiesel has been on the rise in recent years.

The rise in biodiesel production reflects the government's dedication to decreasing dependence on fossil fuels and improving energy security. Agus, in a press release from the Ministry of Energy and Mineral Resources dated October 26, 2024, announced that the blending ratio will progressively increase, starting with B35, then advancing to B40, and ultimately reaching B50 and B60.

To explain, B50 consists of a 50-50 blend of palm oil (CPO) and diesel, while B60 is made up of 60 percent palm oil (CPO) and 40 percent diesel. The Ministry of Energy and Mineral Resources reported that biodiesel production was 9.3 million kiloliters (KL) in 2021, rising to 10.45 million KL in 2022.

In 2023, production further increased to 12.2 million KL, coinciding with the implementation of the B35 mandate in August.

The economic advantages of biodiesel production in 2023 included savings of Rp 120.54 trillion in foreign exchange, a boost in the value of crude palm oil (CPO) to biodiesel amounting to Rp 15.82 trillion, and the generation of over 11,000 off-farm jobs along with 1.5 million on-farm jobs.

Tag: B40 Biodiesel Program Bahlil Lahadalia Minister Of Energy And Mineral Resources