Indonesia will stop importing low-grade diesel fuel from July 1 as it launches its B50 biodiesel program, increasing the share of palm oil-based fuel in its energy mix.
The country will shift to B50, a biofuel blend consisting of 50% diesel and 50% crude palm oil, according to Andi Amran Sulaiman, Indonesia’s Minister of Agriculture.
The official said that the move is part of the government’s efforts to strengthen national energy independence by utilising palm oil as an alternative fuel.
He explained that palm oil can be processed not only into diesel but also into gasoline and ethanol, whose development is currently being accelerated.
A worker at state-owned Pertamina, Indonesia’s main retailer of subsidised fuel, fills a vehicle at a petrol station in Jakarta, Nov. 17, 2014. Photo by Reuters |
Indonesia’s move comes amid growing disruptions to global energy supplies, especially increasing risks around the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Halting diesel imports and switching to B50 reflects the country’s efforts to restructure its energy strategy, reduce dependence on external markets and strengthen domestic supply sources.
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