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Indonesia-Signs-15.6-Mln-Kilolitres-Biodiesel-Allocation-For-2025.md
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| <br>Biodiesel allocation decree was waited for by market<br> | |||
| <br>Indonesia had prepared to launch greater biodiesel mix on Jan. 1<br> | |||
| <br>Palm oil criteria contract rose 1% after previous fall<br> | |||
| <br>Government goes for 50% biodiesel mix in 2026<br> | |||
| <br>(Recasts with energy minister's remark)<br> | |||
| <br>By [Bernadette](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) Christina and Fransiska Nangoy<br> | |||
| <br>JAKARTA, Jan 3 (Reuters) [- Indonesia](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) Energy and Mineral Resources Minister signed a decree on Friday designating 15.6 million kilolitres (KL) of [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) for 2025 circulation, while giving the market till the end of next month to adjust to the greater level of the fuel in the mix.<br> | |||
| <br>Indonesia, the world's biggest exporter of palm oil, had prepared to [release](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) the mandatory requirement of 40% palm oil fuel in [biodiesel](https://pitchbook.com/profiles/company/51278-86) on Jan. 1, up from 35% now.<br> | |||
| <br>"The ministerial guideline has actually been signed," the minister Bahlil Lahadalia informed reporters, adding the federal government was working to [increase](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) the necessary biodiesel mix to 50% next year.<br> | |||
| <br>Eniya Listiani Dewi, a [ministry senior](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) authorities, said [biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) [producers](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) and [fuel retailers](https://www.zoominfo.com/c/mission-newenergy/346542889) will be provided till Feb. 28 to adapt to the B40 mix. She stated the [hold-up](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) was since of technical challenges connected to subsidies for the fuel.<br> | |||
| <br>The non-implementation on Jan. 1. had actually led to a 2.6% drop in the [Malaysian palm](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) oil benchmark contract on Thursday. On Friday, it recovered by around 1%.<br> | |||
| <br>Fuel merchants and biodiesel producers had stated they were unable to draw up agreements for [biodiesel distribution](https://stocktwits.com/symbol/MNEL) without the decree.<br> | |||
| <br>The [biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) allowance for 2025 indicated an [increase](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) from 2024's estimated biodiesel usage of 12.98 KL, ministry information revealed on Friday.<br> | |||
| <br>Of the overall allowance for this year, 7.55 million KL is for the public service responsibility (PSO), which covers sectors such as public transport, whose sales will be subsidised by the [country's palm](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) oil fund.<br> | |||
| <br>"The remaining allowances will be sold at market price. The non-PSO allotment is set at 8.07 million KL," Bahlil stated, [including](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) the fund might not subsidise the price gap between the palm oil and [nonrenewable fuel](https://stocktwits.com/symbol/MNEL) sources for the general allowance.<br> | |||
| <br>BPDPKS, the company in charge of collecting and handling the palm oil funds, approximated in November B40 would require a 68% [aid boost](https://stocktwits.com/symbol/MNEL).<br> | |||
| <br>To that, Indonesia prepares to increase its export levy for crude palm oil (CPO) to 10% from the [current](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) 7.5%, however for that to happen, another [official guideline](https://www.crunchbase.com/organization/mission-newenergy) is needed. (Reporting by Bernadette Christina Munthe, Fransiska Nangoy, Dewi Kurniawati | |||