JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry said.
If executed, the B40 required could increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry stated, 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 main Eniya Listiani Dewi said in a statement on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to fulfill B40 need, with installed capability expected to increase to 20 million KL annually next year from 18 million KL now.
"However we will require more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel industry would require 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he added.
Indonesia's most significant palm oil association GAPKI said a decrease in exports implied there would suffice basic materials to provide the B40 required in the meantime.
But the industry would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing 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 heaps in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic consumption rose, driven by biodiesel mandate.
The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the first time previously this week, while planning to check the B40 mix on agriculture machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)