The Indonesian government is finalizing technical regulations for the implementation of B40 biodiesel, a fuel blend containing 40% palm-based biodiesel. The Ministry of Energy and Mineral Resources (ESDM) aims to complete the rules this week through a ministerial decree.

Deputy Minister Yuliot Tanjung explained that the process includes on-site inspections of supply readiness. "We conducted checks in the field last week. Hopefully, the decree can be completed this week," he said on Thursday, January 2, 2025.

Although the B40 mandate was slated for January 1, 2025, a transitional phase will follow its rollout. Implementation details are awaiting formal government regulations, ensuring smoother adjustments for industry stakeholders.

Earlier inspections at Pertamina’s Refinery Unit II Dumai demonstrated the industry’s preparedness. “The Minister of ESDM has set the decision, and we've observed the readiness of Fatty Acid Methyl Ester (FAME) production as a biofuel source,” Yuliot added.

The annual biodiesel demand for B40 is projected at 15.6 million kiloliters. This includes nationwide distribution, making supply chain and raw material readiness critical. Pertamina has designated two refineries for production: Refinery Unit III Plaju in South Sumatra and Refinery Unit VII Kasim in Papua.

"These refineries primarily produce B0 fuel and are prepared to transition to B40 production. Blending will be handled by Patra Niaga," stated Didik Bahagia, Director of Operations at Pertamina International Refinery.

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