Indonesia could save billions of dollars through palm biodiesel conversion instead of oil imports, Majalah Hortus reported on August 26, 2024.
Speaking after attending his PAN party’s congress, president-elect Prabowo Subianto predicted ending palm oil export dependence on a restrictive European Union (EU).
He stipulated that an EU deforestation-related palm oil embargo would be “a blessing in disguise.”
Prabowo outlined that his country could end up saving $20 billion annually through biofuel production by end 2024 or early 2025.
By then, Indonesia will have transitioned from 2023’s B35 biofuel standard to the next stage, B40.
Palm Biodiesel to Make Up 50% of Diesel Oil
While the B35 standard mandates a minimum 35% biodiesel in diesel, the upcoming B50 standard will upgrade the fraction to 50%.
According to Prabowo, first there will be a transition to B40 or the inclusion of 40% biodiesel in petroleum oil.
The B50 stage, where plant-based biofuels will constitute half the diesel content, will follow in as early as 2025.
When this happens, the country will thereby have cut oil imports greatly, saving the estimated 20 billion dollars.
The south-east Asia archipelago will also domestically circulate around 300 trillion rupiah ($19.44 billion) from biodiesel revenue.
Advances in Plant-based Gasoline
Apart from biodiesel, Indonesia is on course to produce refined gasoline similar to petrol at the Bogor Agricultural University (IPB).
Though unclear when IPB will make headway, the breakthrough will mean total freedom from petroleum imports.
The only thorn in the side is accelerating deforestation levels from oil palm cultivation, which has elicited the EU fallout.
All in all, it appears that palm biodiesel and its growing impact in the energy sector remains the current focus. To learn notable highlights for Indonesia regarding this green source of energy, read on the statistics section below.
Indonesia Palm Biodiesel Statistics
Biodiesel production in Indonesia comes mainly from palm oil at a sizable fraction. In 2013, for instance, biofuel production represented 12% of all palm oil use in the country. 10 years later in 2023, Indonesia was leading the world in farm biodiesel output at 13.65 billion liters. This is equal to around 187,710 barrels of oil production daily. In comparison, the runner-up Brazil, produced half Indonesia’s portion at 6.77 billion liters in 2022.
Is biofuel production threatening palm-based food production in Indonesia?
Indonesia prides in ample production of biofuel because it emits fewer CO2 gas and hydrocarbons than conventional diesel. However, reliance on plant-based energy sources puts the country at risk of massive deforestation and rising food costs. In 2013, 73% of the country’s palm oil went into food products like margarine, but this fraction could reduce as the energy fraction rises.
How much biodiesel does Indonesia consume per day?
In 2022, Indonesia ranked second globally in biofuel consumption, at 178,820 barrels a day. The leader, the U.S., in its part utilized a little more at 216,750 barrels daily. Indonesia’s biofuel utility rose rapidly in the decade ending 2022 with a yearly growth of 74.25%, according to Knoema.