Pertamina Ensures B40 Biodiesel Production Won't Disrupt CPO Stock for Cooking Oil

JAKARTA, Investortrust.id - The Chief Executive Officer of Pertamina New & Renewable Energy John Anis assured that the demand for crude palm oil for the production of Biodiesel 40, or B40, will not interfere with the stock of palm oil used for cooking oil production.

In a statement made during his attendance at the Abu Dhabi Sustainability Week (ADSW) 2025 in the UAE, John emphasized that current projections for crude palm oil (CPO) production remain positive, ensuring that B40 production would not disrupt domestic cooking oil needs.

John explained that Pertamina’s projections for B40 production are coordinated with palm oil producers to ensure a balance between domestic supply and demand. He further addressed concerns about B40’s impact on CPO exports, stating that while exports might decrease, this would result in a reduction in diesel imports, thus saving foreign exchange.

“B40 also helps reduce diesel imports, so while exports may decline, the savings on imports will help the country’s finances,” John remarked.

John emphasized that the primary objective of B40 production is to meet Indonesia's strategic fuel needs, particularly for domestic consumption. He believes that implementing B40 will have a positive multiplier effect, not only by saving foreign currency but also by providing a more environmentally friendly fuel option.

B40 is a blend of 40% palm oil-based biodiesel with diesel fuel. This mandatory B40 program is outlined in the Minister of Energy and Mineral Resources (ESDM) Decree No. 341.K/EK.01/MEM.E/2024, which mandates the use of biodiesel as a blend with diesel fuel.

Pertamina’s subholding refining and petrochemical unit, PT Kilang Pertamina Internasional (KPI), began producing B40 at its refineries in Plaju, South Sumatra, and Kasim, West Papua, starting January 1, 2025.