JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry stated.
If carried out, the B40 mandate might increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.
"We hope the trials might be finished in December, so that complete implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to fulfill B40 need, with set up capability anticipated to increase to 20 million KL each year next year from 18 million KL now.
"However we will need more raw products to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would require 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps required this year, he added.
Indonesia's greatest palm oil association GAPKI said a decline in exports indicated there would suffice basic materials to supply the B40 required in the meantime.
But the market would require to examine "which one would be more important", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make supplying the domestic market less viable.
Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are expected to decrease by 2.47% to 29.5 million heaps as domestic consumption rose, driven by biodiesel mandate.
The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while planning to test the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)