JAKARTA, Feb 27 (Reuters) - Indonesia's unblended biodiesel consumption in 2024 is seen rising to 12.5 million-13 million kilolitres from 12.2 million kilolitres last year, an energy ministry official said on Tuesday, leading to a possible fall in palm oil exports.
The Indonesia Palm Oil Association (GAPKI) had previously estimated that palm oil exports were expected to fall roughly 4% this year because of higher domestic demand for the vegetable oil as biodiesel feedstock while production growth remained modest.
The world's biggest palm oil producer and exporter has pushed a wide use of the palm oil-based fuel to reduce crude oil imports and shift to lower emission fuel.
"Biodiesel allocation for 2024 (is) set at 13.4 million kilolitres. For realisation, we hope around 12.5 million to 13 million kilolitres," energy ministry official Edi Wibowo told an industry seminar.
The government has allocated 13.4 million kilolitres of biodiesel for this year as the country rolls out its 35% palm oil blend for biodiesel, a programme better known as B35.
GAPKI previously estimated Indonesia's palm oil output in 2024 would grow 4.9% annually to 55.8 million tons. Domestic consumption was expected to rise by 9% to 25.4 million tons, including 11.6 million tons for biodiesel feedstock.
Indonesia's biodiesel production rose to 13.15 million kilolitres in 2023 from 11.82 million kilolitres in the previous year, data from the Indonesia Biofuel Producer Association (APROBI) showed.
Meanwhile, exports stood at 187,810 kilolitres, down nearly half from 2022. The government said that biodiesel exports were hurt by restrictions imposed by importing countries.
(Reporting by Bernadette Christina; Editing by Subhranshu Sahu)
