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<br>JAKARTA, July 24 (Reuters) - Indonesia, the [world's biggest](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) palm oil producer, is checking fuel with a view to [increasing](https://www.google.com/search?kgmid=/m/0cqd_rb) to 40% from 35% the share of palm-oil blended into [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) next year, the energy ministry said.<br> |
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<br>If implemented, the B40 mandate might [increase biodiesel](https://www.pinterest.com.au/missionnewenergy/) intake to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.<br> |
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<br>"We hope the trials might be finished in December, so that full application of B40 might be carried out in 2025," [energy ministry](https://forest500.org/rankings/companies/mission-newenergy-limited) senior main Eniya Listiani Dewi stated in a [declaration](https://www.crunchbase.com/organization/mission-newenergy) on Tuesday.<br> |
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<br>The Indonesian [Biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) Producers Association (APROBI) stated the [industry](https://www.google.com/search?kgmid=/m/0cqd_rb) had the capability to fulfill B40 need, with set up capacity expected to [increase](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) to 20 million KL [annually](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) next year from 18 million KL now.<br> |
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<br>"However we will require more raw products to satisfy B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.<br> |
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<br>The biodiesel market would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) next year, from the [approximated](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) 11 million heaps required this year, he added.<br> |
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<br>[Indonesia's biggest](https://pitchbook.com/profiles/company/51278-86) palm oil association GAPKI stated a decline in exports suggested there would be sufficient raw [materials](https://forest500.org/rankings/companies/mission-newenergy-limited) to provide the B40 mandate for now.<br> |
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<br>But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono stated, [referring](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) to the possibility a boost in exports would make providing the domestic market less practical.<br> |
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<br>Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% increase from in 2015, while exports are expected to decrease by 2.47% to 29.5 million lots as domestic intake rose, driven by [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) mandate.<br> |
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<br>The ministry had checked the [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/), blended with 40% of palm oil, on a train for the very first time earlier today, while [preparing](https://www.businessnews.com.au/Company/Mission-NewEnergy) to test the B40 mix on agriculture machinery, power plants and in the shipping industry, it stated. ([Reporting](https://www.bloomberg.com/profile/company/MNELF:US) by Bernadette Christina and Dewi Kurniawati |