Indonesia: Biofuels Annual

In 2022, Indonesia maintained its biodiesel blending mandate at 30 percent and raised its biodiesel allocation volume to a record 10.1 billion liters on expected increased economic activity and mobility following eased pandemic-related restrictions. The export levy that funds the subsidies underwriting the biodiesel mandate program was adjusted to also subsidize cooking oil prices which have surged since late 2021. Indonesia 2022 biodiesel exports are forecast to remain limited at 200 million liters on expected high export levies and taxes. Domestic production and consumption of fuel grade ethanol (FGE) remains virtually non-existent due to feedstock limitations and no viable subsidy scheme. However, as global ethanol prices are currently lower than gasoline prices, there is renewed interest in pursuing an E2 pilot project and assessing the benefits and viability of importing finished gasoline blended with ethanol or direct imports of ethanol for in-country blending.