The B15 program was implemented in April 2015 (as the follow up of the preceding B10 program). However, compliance has been low as producers had to wait for further specific regulations (related to the new palm oil export levies that are used to finance the biodiesel program), while Pertamina ran out of fatty acid methyl ester (FAME) reserves. Earlier this year, the government also set a new biofuel index price (HIP) in order to support local biodiesel producers. Previously, these producers were unwilling to supply biofuel as the steeply declining petroleum price made the biofuel business less profitable and attractive. Moreover, with the new HIP local producers do not have to compete with each other in terms of prices.

The eleven companies, which were appointed directly (without bidding process), will together supply a total of 1.87 million kiloliters of biodiesel to Pertamina and AKR Corporindo between November 2015 and April 2016. Nearly all (approx. 1.84 million kiloliters) will be supplied to Pertamina, the largest company in Indonesia in terms of profit and revenue. The three companies that will supply most of the biodiesel are Wilmar Nabati Indonesia, Wilmar Bioenergi Indonesia, and Musim Mas. After April 2016 the program will continue but the biodiesel suppliers have not been determined yet.

Eleven Biodiesel Suppliers in the Period Nov 2015 - April 2016:

Company Volume (kl)
Wilmar Nabati Indonesia    547,407
Wilmar Bioenergi Indonesia    388,304
Musim Mas    338,982
Cemerlang Energi Perkasa    140,016
Darmex Biofuels    133,744
Pelita Agung Agriindustri     90,552
Ciliandra Perkasa     73,078
Anugerahinti Gemanusa     49,362
Primanusa Palma Energi     44,189
Bioenergi Pratama Jaya     33,375
Energi Baharu Lestari     20,078

Source: Kontan

In 2014, the Indonesian government implemented the B10 biodiesel program, forcing producers of subsidized diesel to blend their diesel with 10 percent of FAME. However, the program lacked success as the target (2.1 million kiloliters) was not achieved (with realization at 1.8 million kiloliters). This year, the B15 program was introduced with a production target of 4 million kiloliters. However, it remains unclear whether this target will be met, even though members of the Indonesian Biofuel Producers’ Association (Aprobi) now have a total installed biodiesel production capacity of nearly 7 million kiloliters per year.