commit 8d1ee6ebfe5e72698a87b578cb3a7fbaac1b6a2e Author: frederick33483 Date: Sun Jan 12 10:55:21 2025 +0000 Add 'Indonesia's Higher Biodiesel Mandate Rollout May Be Gradual,' diff --git a/Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md b/Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md new file mode 100644 index 0000000..b8fa1c4 --- /dev/null +++ b/Indonesia%27s-Higher-Biodiesel-Mandate-Rollout-May-Be-Gradual%2C.md @@ -0,0 +1,23 @@ +
Indonesia firmly insists B40 [biodiesel](https://www.pinterest.com.au/missionnewenergy/) application to proceed on Jan. 1
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Industry individuals looking for phase-in duration expect gradual intro
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Industry faces technical challenges and expense concerns
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[Government financing](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) concerns develop due to palm oil cost disparity
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JAKARTA, Dec 18 (Reuters) - Indonesia's plan to expand its biodiesel required from Jan. 1, which has actually fuelled issues it could suppress global palm oil supplies, looks increasingly likely to be carried out gradually, [experts](https://forest500.org/rankings/companies/mission-newenergy-limited) stated, as market participants look for a phase-in duration.
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Indonesia, the world's biggest producer and exporter of palm oil, plans to raise the necessary mix of [palm oil](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) in [biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to 40% - called B40 - from 35%, a policy that has actually triggered a jump in palm futures and may press costs further in 2025.
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While the government of President Prabowo Subianto has said repeatedly the [strategy](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) is on track for complete launch in the [brand-new](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) year, market watchers say expenses and technical challenges are likely to result in partial application before full adoption across the sprawling archipelago.
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Indonesia's biggest fuel retailer, state-owned Pertamina, stated it requires to customize some of its fuel terminals to mix and store B40, which will be completed throughout a "shift duration after federal government establishes the mandate", representative Fadjar Djoko Santoso informed Reuters, without providing information.
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During a meeting with federal government officials and biodiesel manufacturers recently, fuel sellers asked for a [two-month](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) shift duration, Ernest Gunawan, secretary general of [biofuel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) manufacturers association APROBI, who was in participation, told Reuters.
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Hiswana Migas, the [fuel merchants'](https://www.google.com/search?kgmid=/m/0cqd_rb) association, did not right away respond to a demand for comment.
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Energy ministry senior main Eniya Listiani Dewi informed Reuters the required hike would not be carried out slowly, and that [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) producers are prepared to provide the greater mix.
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"I have actually validated the readiness with all manufacturers last week," she said.
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APROBI, whose members make fat methyl ester (FAME) from palm oil to be mixed with diesel fuel, stated the [federal government](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) has not provided [allowances](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) for manufacturers to sell to sustain merchants, which it typically has actually done by this time of the year.
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"We can't perform without purchase order documents, and order files are obtained after we get contracts with fuel companies," [Gunawan](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) told Reuters. "Fuel business can only sign contracts after the ministerial decree (on [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) allowances)."
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The federal government prepares to [allocate](https://www.google.com/search?kgmid=/m/0cqd_rb) 15.62 million [kilolitres](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) (4.13 billion gallons) of FAME for B40 in 2025, Eniya informed Reuters, less than its preliminary price quote of 16 million kilolitres.
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FUNDING CHALLENGES
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For the federal government, funding the greater mix could likewise be a challenge as [palm oil](https://www.bloomberg.com/profile/company/MNELF:US) now costs around $400 per metric load more than petroleum. [Indonesia](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) uses earnings from [palm oil](https://www.bloomberg.com/profile/company/MNELF:US) export levies, handled by a company called BPDPKS, to cover such gaps.
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In November, BPDPKS approximated it needed a 68% increase in aids to 47 trillion rupiah ($2.93 billion) next year and approximated levy collection at around 21 trillion rupiah, fuelling market speculation that a levy hike is imminent.
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However, the palm oil market would challenge a levy hike, said Tauhid Ahmad, a senior expert with think-tank INDEF, as it would injure the market, including palm smallholders.
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"I think there will be a hold-up, due to the fact that if it is executed, the aid will increase. Where will (the cash) originate from?" he said.
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Nagaraj Meda, managing director of Transgraph Consulting, a product consultancy, stated B40 would be challenging in 2025.
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"The implementation may be slow and gradual in 2025 and most likely more fast-paced in 2026," he stated.
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Prabowo, who took workplace in October, campaigned on a platform to raise the mandate even more to B50 or B60 to attain energy self-sufficiency and cut $20 billion of yearly fuel imports. ($1 = 16,035.0000 rupiah) (Reporting by Bernadette Christina \ No newline at end of file