November 29, 2024 [Reuters]- Indonesia remains committed to start implementing a 40% mandatory biodiesel mix with palm oil-based fuel, or B40, on Jan. 1 next year, its chief economic minister said on Friday.

Indonesia, the world’s largest palm oil producer, currently uses B35, a 35% blend of palm oil-based biodiesel.

Minister Airlangga Hartarto said the B40 implementation was Indonesia’s “concrete contribution to the world” as it could reduce carbon dioxide emissions by about 40 million metric tons.

He also said Indonesia’s palm oil fund agency would be able to finance the gap between the cost of palm-oil based fuel and fossil fuel.

B40 will boost Indonesia’s palm oil use for biodiesel to 13.9 million metric tons, from the estimated 11 million tons needed this year with B35, Indonesia’s biofuel producers association APROBI has previously estimated.

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