Roll out B15 biodiesel programme pronto, senator urges Govt

KUALA LUMPUR: The government has been urged to upgrade quickly the B10 biodiesel programme being implemented to B15 to ensure that Malaysia remains a key player and the benchmark for palm oil prices in the world.

Senator Datuk Lim Pay Hen said Indonesia’s plan to introduce its own crude palm oil (CPO) benchmark price in June poses a threat to Malaysia’s palm oil industry, especially as the Asean neighbour has launched the B35 (35% palm oil biodiesel blending) programme to spur domestic palm oil demand.

Currently, Indonesia is the world’s largest palm oil producer, with CPO output of 47 million tonnes in 2022.

“If Indonesia were to continue with its plan, Malaysia would continue to be left behind, and cease to be significant in the global palm oil industry.

“So this is a two-pronged solution to save the nation’s palm oil industry, as the implementation has been delayed time and again. If the government is serious [about dealing with the issue], it needs to move swiftly,” he said during the debate on the Supply Bill 2023 in the Dewan Negara here today.

Under the 12th Malaysia Plan, the government targets to implement the B30 biodiesel programme in the transport sector by 2025.

He noted that only two years are left to achieve the goal of introducing B30.

The B20 biodiesel programme was previously scheduled to be carried out by end-2022.

Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the plantation and commodities minister, said Indonesia’s plan to have its own CPO benchmark price will affect the entire oil palm industry chain, not just Malaysia, but also globally.