Indonesia Sets 2022 B30 Biodiesel Allocation at 10.15 Million kL

Jakarta — Indonesia's Ministry of Energy and Mineral Resources (ESDM) has set its 2022 biodiesel allocation at 10,151,018 kilolitres (kL) under a decision dated 30 November 2021. It has also added 213,033 kL to the 2021 allocation, bringing that year's total to 9,413,033 kL. The decisions concern the existing B30 programme, a blend of 30% biodiesel with 70% conventional diesel.

The 2022 figure is an allocation, not biodiesel already consumed or delivered. ESDM based its calculation on diesel imports and biodiesel distribution in 2021, together with an assumed 5.5% increase in diesel demand. The ministry projects diesel demand of 33.84 million kL in 2022; that is a forecast, not an observed outcome.

Extra volume for the remainder of 2021

According to the ministry, biodiesel deliveries had reached 8.08 million kL by the fourth week of November, or 87.9% of the initial 9.2 million kL allocation. As mobility and fuel demand recovered, ESDM authorised another 213,033 kL for the rest of the year. Ministerial Decision No. 149.K/EK.05/DJE/2021 sets out the revised total of 9,413,033 kL.

Dadan Kusdiana, director-general of new and renewable energy and energy conservation, attributed rising diesel demand to recovering activity since September, according to ESDM's statement. ANTARA also reported the extra allocation on 1 December. A larger allocation does not establish that every litre will be used: final deliveries can only be assessed after the supply period ends.

Distribution plans for B30 in 2022

Ministerial Decision No. 150.K/EK.05/DJE/2021 sets next year's biodiesel allocation at 10,151,018 kL. ESDM says 22 fuel businesses will support distribution, alongside biodiesel installed capacity of 15,493,187 kL and annual production capability of 13,527,527 kL. Neither installed capacity nor production capability is a promise of actual deliveries.

The ministry plans to take biofuel producers' (BU BBN) delivery performance between 1 November 2020 and 31 October 2021 into account when assigning volumes. It also aims to have at least two producers supply each delivery point, introduce a transport-cost formula, optimise routes and use online monitoring to identify possible supply failures. The concern is that a delivery point might otherwise receive unblended diesel, known as B0.

CNBC Indonesia reported the same allocation and business-capacity figures on 1 December, citing ESDM. The distinction between an allocation, factory capacity and fuel actually delivered matters: each describes a different stage of the programme. The November delivery tally measures progress in 2021, whereas the number for 2022 is the government's announced supply plan.

What to watch next year

For the palm oil and fuel supply chains, the decision offers an indication of expected biodiesel demand, not a guarantee of feedstock consumption. The practical test will be whether producers can get biodiesel to blending points when needed. Assessment of B30's performance in 2022 should therefore use delivery data rather than treating the ministerial allocation as a final result.

ESDM has outlined changes to monitoring and distribution, but their effectiveness cannot be established from the announcement alone. Readers can follow the biodiesel mandate data and the guide to blending levels. As of this report, the central development is the 2022 B30 allocation and the ministry's attempt to reduce supply disruptions.