Indonesia Used 12.2 Million kL of Biodiesel in 2023, ESDM Says

Jakarta — Domestic biodiesel use reached 12.2 million kilolitres (kL) in 2023, Indonesia's Ministry of Energy and Mineral Resources (ESDM) reported on 16 January 2024. Minister Arifin Tasrif said the mandatory blending programme saved US$7.9 billion in foreign exchange, equivalent to about IDR 120.54 trillion. The volume is a reported year-end outcome; the foreign-exchange figure is a government claim about import substitution, not export revenue or cash received by the state.

Use exceeded one target, but targets and allocations differ

ESDM measured the 12.2 million kL actually used against a 2023 domestic-use target of 10.65 million kL and reported attainment of 114.5%. That is roughly 1.55 million kL above the target. It is not the same benchmark as the 13.15 million kL allocation for 2023 mentioned by CNBC Indonesia in its account of the B35 launch. An allocation sets aside volume for the policy, while the use figure describes what ESDM said reached the domestic market during the completed year.

Consequently, beating the 10.65 million kL use target does not establish that the entire 13.15 million kL allocation was consumed. CNBC Indonesia's 15 January account also cited ESDM data showing 12.2 million kL of use in 2023. Arifin's 12.5 million kL figure for 2024, meanwhile, was a target for the following year, not a 2024 result. Keeping these categories apart matters when comparing the programme's plans with its reported outcomes.

What the foreign-exchange claim does and does not show

According to Arifin, blending fatty acid methyl ester (FAME) biodiesel into diesel fuel reduced the need for imported diesel and crude oil. ESDM estimated the resulting 2023 foreign-exchange saving at US$7.9 billion, or approximately IDR 120.54 trillion in its 16 January release. CNBC Indonesia rounded the rupiah figure to IDR 122 trillion in its 15 January report while citing the same US$7.9 billion claim. This article uses the ministry's more precise rupiah figure and attributes the saving to the government rather than presenting it as an independently established net benefit.

Neither the ESDM release nor the contemporary reports cited below provide a full calculation method and programme-cost breakdown for the claim. A purported import bill avoided should not be confused with a treasury receipt or added uncritically to another measure of economic benefit. ESDM separately reported IDR 15.82 trillion in added value from processing crude palm oil (CPO) into biodiesel. It also said the programme supported more than 11,000 off-farm jobs and 1.5 million on-farm workers. These are ministry-reported impacts, not employment survey findings demonstrated in the release.

A year-end result in context

ESDM's reported domestic-use series rose from 8.4 million kL in 2020 to 9.3 million kL in 2021 and 10.45 million kL in 2022 before reaching 12.2 million kL in 2023. ANTARA's 16 January coverage described the latest increase as 16.7% year on year. The trend records reported biodiesel use; on its own it does not establish the precise change in actual petroleum imports, the full cause of the rise, or net benefits after programme costs.

Indonesia began the B35 mandate in February 2023, requiring a blend of biodiesel in diesel fuel with a 35% biodiesel share. CNBC Indonesia dated the launch to 1 February. At the close of that year, three figures therefore need separate labels: 12.2 million kL of reported use, a 10.65 million kL use target, and a 13.15 million kL allocation. The US$7.9 billion figure is the government's stated economic consequence of the programme, not a fourth measure of physical biodiesel volume.