Indonesia’s December Biodiesel Production Climbed by 7%, While Exports Increased

Production Increased

Indonesia’s biodiesel output climbed by 7% in December, while exports increased, according to local trade association data provided by S&P Global.

Indonesia produced 1.24 billion liters (7.82 million barrels) of biodiesel in December, up 7.2% over the previous month, according to APROBI on February 2.

The world’s third-largest producer produced 13.15 billion litres of biodiesel in 2023, up 11.3% from the previous year, according to APROBI data.

Exports rose by 49.5% compared to 14.25 billion litres in December.

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Indonesia’s Regulation

Indonesia increased the mandated percentage of palm oil-based biodiesel to 35% (B35) in February 2023, up from 30% since 2020, with the blend launched nationwide in August, S&P Global said on February 2.
Local biodiesel use declined to 926 million litres in December from 109 million litres in November, according to APROBI.

S&P Global reported that the country’s Energy and Mineral Resources Ministry increased this year’s allocation for palm oil-based biodiesel to 13.41 billion litres, up 1.9% from 2023.

According to a US Department of Agriculture (USDA) Foreign Agricultural Service (FAS) report published in August 2023, Indonesia, the world’s largest palm oil producer, consumed 11.9 million tonnes (or 26.6% of total production) of the vegetable oil as a biodiesel feedstock in the 2022/23 (October-September) marketing year (MY).

For MY2023/24, the agency predicted that Indonesia’s industrial use of palm oil supply will rise to 12.7 million tonnes, or 27.6% of total production for the year.

Platts assessed biodiesel FOB Southeast Asia at US$933/tonne on February 1, down 3.2% from January 29, according to S&P Global Commodity Insights data.

Also read : Indonesia Raises Allocation of 2024 Palm-Based Biodiesel