Indonesia’s B40 palm oil delay causes market uncertainty

In Indonesia, Reuters reported that the Indonesian government has yet to implement a higher mandatory blend of biodiesel planned for January 1 as industry participants await technical details of the new regulation, causing confusion among palm oil traders.

The government had pledged to mandate a 40% mix of palm oil-based fuel in biodiesel from January 1, known as B40, from a 35% blend currently in force.

Indonesian state energy firm Pertamina, which operates the country’s largest petrol station network, and biodiesel producers group APROBI said they were waiting for the relevant official decrees before selling the fuel, according to the report.

“Once the regulation has been issued, there will be time to transition for the sale. At the moment we have prepared Plaju and Kasim refineries for processing of B40,” Pertamina spokesperson Fadjar Djoko Santoso said.

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