last Tuesday Indonesia’s chief economy minister has ensured that there will be no disruption in cooking in the country. When a higher biodiesel blend of palm oil was introduced on February 1 to alleviate concerns about supply and prices.
last year The world’s major palm oil producers have instituted measures to curb stubbornly high local cooking oil prices. Including a three-week ban on vegetable oil exports, which shocked the world market.
last wednesday The company has launched a mandatory biodiesel with a palm oil content of 35%, also known as B35, up from the current 30%.
Coordinating Economic Minister Airlangga Hartarto said the B35 would absorb some of the supply that would normally go to Europe. Edible oil is facing opposition due to its links to deforestation.
“The B35 project will not disrupt the supply needed for (food) consumption,” he told reporters. “Guarantee that domestic supply will be sufficient.”
He cited the government’s request on Monday for local cooking oil producers to increase supply in the domestic market by 50 percent to 450,000 tonnes over the next three months. To meet the growing demand ahead of Islamic festivals.
Indonesia uses the world’s most blended palm oil in mandatory biodiesel. The objective is to reduce dependence on imported diesel and increase demand for multi-purpose vegetable oil.
on Tuesday The country’s Palm Oil Fund (BPDPKS) estimates that 30.22 trillion rupiah ($2.02 billion) will be needed to subsidize biodiesel sales in 2023, fund chief Eddy Abdurrachman said, slightly less than last year. even though blended palm oil is higher
That’s because of the narrowing gap between palm fuel costs and fossil diesel, Eddy said.
The fund will collect taxes from palm oil exporters and use the proceeds to subsidize biodiesel and other projects such as palm replacement projects.
Higher blends are expected to increase consumption of fatty acid methyl esters (FAME), a fuel made from palm oil, to 13.15 million kiloliters (KL), up from 10.4 million KL last year.
Industry experts say Absorption of crude palm oil (CPO) is about 11 million tonnes, up from 9.6 million tonnes of crude palm oil last year.
The Indonesian Palm Oil Association (GAPKI) has estimated palm oil output of about 50 million tonnes in 2023.
($1 = 14,975.0000 rupiah)
