Indonesia "very likely" to delay B35 biodiesel rollout: official

INDONESIA is "very likely" to delay the rollout of biodiesel with 35 per cent palm oil content, known as B35, which was previously expected to start on Jul 20, energy ministry official Dadan Kusdiana said on Tuesday (Jul 19).

Authorities want to increase the bio-content in fuel to help reduce a huge stock of palm oil in Indonesia resulting from a 3-week export ban which ended on May 23 and with ongoing shipment restrictions still in place.

Indonesia, which is the world's biggest palm oil producer, currently has a mandatory B30 programme, which means 30 per cent of the fuel is made from palm oil.

"The B35 programme still need discussions with relevant ministries, especially related to technical aspects, for example biodiesel specifications and also the possible impact on the engine," Dadan told Reuters.

He did not immediately comment when asked about a new timetable for B35.

The energy ministry had estimated the switch to B35 from B30 would create additional demand for 727,804 kilolitres of the palm oil fuel this year, taking full-year consumption to 10.88 million KL. REUTERS