Indonesia Distributed 2.17 Million kL of Biodiesel in Q1 2020

Jakarta — Indonesia distributed 2.17 million kilolitres (kL) of biodiesel in the first quarter of 2020, equivalent to 90.4% of purchase orders of about 2.4 million kL, the Ministry of Energy and Mineral Resources (ESDM) said on 23 April 2020. The ministry linked the shortfall to weaker demand for B30 amid the Covid-19 pandemic. The figure measures biodiesel distributed, not the total volume of blended diesel sold to motorists.

A distribution shortfall in the first quarter

ESDM's statement attributed the figures to Hariyanto, its director of energy conservation, who spoke at a virtual discussion organised by the Institute for Essential Services Reform (IESR) on 21 April about the pandemic's effects on electricity and renewable energy. Hariyanto said that falling demand for B30 directly reduced biodiesel use. Katadata, reporting on the ministry's statement on 23 April, also highlighted weaker demand as the explanation for distribution falling below the purchase orders.

B30 denotes a blend containing 30% biodiesel and 70% petroleum diesel. The 2.17 million kL in ESDM's report refers to biodiesel distributed from January through March; it must not be confused with all B30 fuel sold. Likewise, the roughly 2.4 million kL purchase-order figure is the comparator for the biodiesel distribution reported by the ministry, not a measurement of blended fuel at filling stations. The 90.4% realisation rate and B30's 30% blending rate describe different things.

February's rise gave way to a March decline

ESDM reported biodiesel distribution of 699.5 thousand kL in January against purchase orders of 789.64 thousand kL. Distribution rose to 756.96 thousand kL in February, when orders stood at 799.3 thousand kL. In March, however, actual distribution fell to 713.86 thousand kL while orders reached 809.95 thousand kL. Both the ministry's release and Katadata's report set out these monthly figures.

The pattern was therefore not a steady decline throughout the quarter: February's realised volume exceeded January's before March reversed course. March's purchase orders were higher than February's, but its actual biodiesel distribution was lower. That divergence helps explain why the quarter ended with distribution below the volume ordered. The figures should be read as reported volumes for each month rather than as a measure of how much total diesel consumption changed across the economy.

Hariyanto linked the weakening of B30 demand to the pandemic. Neither source, however, provided a sector-by-sector breakdown of diesel consumption or quantified the contribution of any individual disruption to March's decline. The available evidence supports the ministry's account of lower B30 demand and biodiesel distribution; it does not establish a precise causal share for particular restrictions or logistical problems.

Context from the preceding years

For context, ESDM reported biodiesel consumption of 2.37 million kL in 2017 and 3.55 million kL in 2018, with the expansion of B20 incentives to non-public-service-obligation sectors among the reasons cited for the increase. Consumption reached 6.37 million kL in 2019, excluding additional biodiesel used in B30 trials late that year. Katadata repeated these historical figures in its 23 April coverage.

Those annual totals provide background but are not directly comparable to a single quarter's distribution. As of 23 April, the information available covered only the first three months of 2020. It would be premature to extrapolate that quarter into a full-year outcome. What the contemporary figures establish is narrower: B30 remained the blending framework, while actual biodiesel distribution during the early pandemic fell short of the purchase orders. The distinction between a mandatory blend percentage and realised biodiesel volume is essential to reading this period accurately.