The Southeast Asian nation, which reduced diesel/gasoil imports by 33.43 on the year to 3.82MM mt (78.5K b/d) and gasoline imports by 5.6 on the year to 6.938MM mt (321K b/d) in 2019, will likely continue to reduce overseas purchases for the fuel products. Instead, the Indonesian government is aiming to increase domestic use of bio fuel after upgrading its bio fuel mix to B30 (30 biofuel) in from B20 previously. Palm Analytics's Co-founder and Owner Sathia Varga said, "9.6MM kL (166K b/d) of biodiesel will be consumed under the B30 mandate in 2020 and total production of Palm Oil Methyl Ester will be around 10.6MM kL." Additionally, Indonesia's B30 mandate will also be used for power generation and industrial and commercial uses, according to Analyst Loren Puette of analyst at SP Global Platts Analytics. Puette also projects diat biodiesel consumption on roads could reach above 6MM kL (103K b/d) this year. Despite efforts to increase the mandate to B40, some market participants have shown bearish outlook for the market with sone middle distillate trader stating, "There's going to be a lot more gasoil with expansions, new refineries in Indonesia... and now less demand with the move towards biodiesel."
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