Minister of Energy and Mineral Resources Decree (Kepmen ESDM) No. 341.K/EK.01/MEM.E/2024 — B40: 40% Biodiesel Blend in Diesel Fuel under BPDPKS Financing

Minister of Energy and Mineral Resources Decree (Kepmen ESDM) No. 341.K/EK.01/MEM.E/2024 sets the use of biodiesel as a blend in diesel fuel (minyak solar) at 40% (B40) under financing by the Oil Palm Plantation Fund Management Agency (BPDPKS, now BPDP). The decree was issued in Jakarta on 24 December 2024 and is the legal basis for the B40 mandatory blending programme that the Ministry of Energy and Mineral Resources (ESDM) put into effect from 1 January 2025. For the palm oil industry, it determines how much palm oil, as fatty acid methyl ester (FAME), is absorbed by Indonesia's domestic biodiesel programme.

Key points

• The biodiesel share in diesel fuel under BPDPKS financing is set at 40%: 40% biodiesel (palm-based FAME) and 60% diesel fuel.
• The decree implements Article 3(1) and Article 18(5)(a) of Minister of Energy and Mineral Resources Regulation No. 24 of 2021 on the supply and use of biodiesel under financing by the Oil Palm Plantation Fund Management Agency.
• Its stated grounds are achieving energy security and increasing the sustainable supply of clean energy, together with the agreement reached at the BPDPKS Steering Committee meeting on 19 December 2024.
• It was issued in Jakarta on 24 December 2024 and took effect on that date; the Ministry announced that the B40 mandate applies from 1 January 2025.

Who it affects

Biofuel business entities (biodiesel producers), fuel business entities that distribute diesel fuel, and the palm oil industry as the supplier of FAME feedstock.