Indonesian Political, Business & Finance News

Gaikindo Says Using B50 Won't Be a Problem for Vehicles, Provided the Mix Is Proper

| Source: CNBC Translated from Indonesian | Energy
Gaikindo Says Using B50 Won't Be a Problem for Vehicles, Provided the Mix Is Proper
Image: CNBC

Gaikindo says a 50% palm-oil biodiesel blend (B50) should not pose a problem for vehicles, provided the composition is properly regulated. The Association of Indonesian Automotive Industries (Gaikindo) notes that while biodiesel can be blended at 50% into diesel, it is necessary to supplement with Hydrotreated Vegetable Oil (HVO). The main challenge of using HVO is its production cost. If using HVO makes diesel more expensive, it could dampen public demand. In addition to price, concerns exist about potential declines in efficiency, as increasing biodiesel blends can sometimes lead to higher fuel consumption. Industry officials say a middle ground must be found.

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