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January 3, 2025 | 11:06 pm
TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has announced the official implementation of the 40 percent biodiesel blending policy (B40) effective January 1, 2025.
“We have announced the increase from B35 to B40, effective January 1, 2025,” Bahlil stated during a press conference at the ESDM Ministry on Friday, January 3, 2025.
He confirmed the signing of the ministerial regulation governing B40, including the allocation of quotas for each company. “We have signed the ministerial regulation, including the allocation to each company,” he emphasized.
This policy shift marks a substantial increase in the national biodiesel quota. Bahlil noted that B40 production will rise to 15.62 million kiloliters, an increase from the current B35 production level of approximately 12.09 million kiloliters.
The government is committed to further optimizing the implementation of this biodiesel blending policy. “Currently, the water content is 320, and we will take steps to improve transportation by upgrading ship specifications to minimize water content as much as possible,” Minister Bahlil explained.
He expressed confidence that the implementation of B40 is possible and will pave the way for the introduction of B50 in 2026. “If we successfully do this, then, God willing, we can eliminate diesel imports entirely by 2026,” he hoped.
Previously, Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, had previously announced that the full implementation of B40 would commence in February 2025.
“For the mandate, January 1 marks the official start, but there will be a 1.5-month transition period from January 1st to February,” Deputy Minister Yuliot stated, as quoted by Antara in Jakarta on Friday.
He explained that this transition period is necessary to allow for the depletion of existing stocks and the necessary technological adjustments. The production of B40 will also be implemented in stages throughout 2025, with an annual production target of 15.6 million kiloliters.
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