Indonesia's Prabowo hopes to implement 50% palm-based biodiesel blending by 2025

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🗞️ Driving the news: Indonesia's president-elect Prabowo Subianto aims to implement a mandatory 50% palm oil-based biodiesel blend (B50) by early 2025 to reduce fuel imports by $20 billion annually
• This plan follows the current administration's target to increase the blend from 35% to 40% by January 2025

🔭 The context: Indonesia is the world's largest producer of palm oil, which is essential for its biodiesel program
• The proposed increase to B50 has led to a surge in palm oil futures prices, though industry associations have raised concerns about the feasibility of meeting this target due to the need for more testing and increased production capacity

🌍 Why it matters for the planet: The transition to higher biodiesel blends aims to cut down on fossil fuel consumption, thereby reducing greenhouse gas emissions
• However, the increased demand for palm oil could impact land use and deforestation, raising environmental and sustainability concerns

⏭️ What's next: Further testing and equipment upgrades are needed before implementing B50, with experts suggesting a more realistic timeline would be late 2025
• The industry must ensure the quality and stability of biodiesel to avoid operational issues in transportation and storage

💬 One quote: “With B50, 50% biodiesel made of palm oil...we will save $20 billion a year, we do not need to send this money overseas,” said President-elect Prabowo Subianto

📈 One stat: The B50 mandate will require approximately 18 million metric tons of crude palm oil, up from the estimated 11 million metric tons used for the current B35 blend

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