Indonesia, the world's largest producer of palm oil, wants to make fuels with a 40% organic content (B40) mandatory in 2021-22.
A B30 program will come into force in the Southeast Asian country in just a few days, from 1 January 2020. This has already caused the price of palm oil to rise because less of the raw material can be exported.
Indonesia's President Joko Widodo is looking for ways to reduce the current large trade deficit by reducing large energy imports. At the same time, he is supporting his palm oil industry with the B30/B40 program. Palm oil and palm oil products are Indonesia's largest export.
Studies have also been commissioned on the production and use of palm oil-based aviation fuel. However, a government spokesman has already announced that there is not enough palm oil available to run a B50ß program. If the yields from the palm plantations do not improve, the B50 program will have to be stopped.
In 2017, Indonesia launched a program to renew old palm plantations. More than 2.4 million hectares are to be replanted every year. However, this program has only been implemented to a limited extent so far.
Source
HANSA Terminhandel
