Indonesia: Biofuels Annual

Indonesia’s fuel grade ethanol consumption remains small and localized in 2024, a year after the restart of the ethanol program. The formation of a taskforce for sugarcane expansion is meant to advance Indonesia’s self-sufficiency goals in sugar and bioethanol. Biodiesel production is projected to rise by 3 percent to 13 billion liters in 2024 on expected higher diesel use combined with the government-mandated 35-percent blending rate. Combined palm oil mill effluent (POME) and palm fatty acid distillate (PFAD) exports remain high on continued demand from overseas markets, lower export levies relative to crude palm oil, and a lack of incentives for local refiners to use biodiesel feedstocks other than crude palm oil.