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Indonesia is laying the groundwork for a B60 biodiesel blend targeted for introduction in 2027, building on the country's planned transition to B50, according to industry reports. President Prabowo Subianto has already identified the 60% biodiesel blend as the next milestone in Indonesia's national biofuel programme, prompting authorities to begin assessing the crude palm oil (CPO) supply and the additional fatty acid methyl ester (FAME) production capacity that such a move would require.
FAME, derived directly from palm oil, is the primary feedstock for Indonesia's palm-based biodiesel programme. The proposed B60 blend would need to cover both subsidised and commercial fuel segments, requiring a significant expansion of FAME manufacturing infrastructure.
The composition of B60 has not yet been finalised. Indonesia's Energy Ministry is examining the possibility of incorporating 10% hydrotreated vegetable oil (HVO) into the blend, although the option remains under evaluation. HVO is currently estimated to cost 1.5 to 2 times more than FAME, while testing is still at an early stage.
The Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS) has been tasked with assessing the FAME requirements for the proposed B60 programme. The study is expected to be completed by December 2026 and will inform the government's decision on the blend's final specifications and the production capacity that needs to be built.
A shift to B60 would further intensify Indonesia's domestic consumption of palm oil for biofuel production, potentially strengthening CPO demand in the country while reducing the volume of palm oil available for other applications, including food and oleochemical uses.
Source: ChiniMandi