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<br>JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is [testing fuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) with a view to increasing 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 stated.<br> |
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<br>If executed, the B40 mandate might increase [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) usage to approximately 16 million [kilolitres](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) (KL) next year, the [ministry](https://stocktwits.com/symbol/MNEL) said, from 13 million KL approximated to be [consumed](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) in 2024.<br> |
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<br>"We hope the trials might be completed in December, so that complete application of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.<br> |
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<br>The Indonesian [Biofuel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) Producers Association (APROBI) stated the market had the capacity to [satisfy](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) B40 need, with installed capability anticipated to increase to 20 million [KL annually](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) next year from 18 million KL now.<br> |
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<br>"However we will need more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.<br> |
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<br>The biodiesel industry would require 13.9 million [metric loads](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he added.<br> |
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<br>Indonesia's most significant palm oil association GAPKI stated a decrease in exports meant there would [suffice](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) [raw products](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) to [provide](https://pitchbook.com/profiles/company/51278-86) the B40 mandate for now.<br> |
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<br>But the market would need to examine "which one would be more important", [GAPKI chairman](https://stocktwits.com/symbol/MNEL) Eddy Martono said, to the possibility a boost in exports would make supplying the [domestic market](https://www.crunchbase.com/organization/mission-newenergy) less feasible.<br> |
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<br>Indonesia's palm oil output is approximated to reach 54.4 million lots 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 consumption rose, driven by [biodiesel mandate](https://pitchbook.com/profiles/company/51278-86).<br> |
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<br>The [ministry](https://forest500.org/rankings/companies/mission-newenergy-limited) had tested the biodiesel, [blended](https://www.zoominfo.com/c/mission-newenergy/346542889) with 40% of palm oil, on a train for the very first time previously this week, while [preparing](https://stocktwits.com/symbol/MNEL) to check the B40 mix on [agriculture](https://www.bloomberg.com/profile/company/MNELF:US) machinery, power plants and in the shipping market, it stated. (Reporting by [Bernadette Christina](https://www.google.com/search?kgmid=/m/0cqd_rb) and Dewi Kurniawati |
