Gov't Prepares Subsidy for Biodiesel B20  

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  • Motorists buy fuel at Pertamina gas stations. Tempo/Tony Hartawan

    Motorists buy fuel at Pertamina gas stations. Tempo/Tony Hartawan

    TEMPO.CO, Jakarta-Achieving success in the mixing of 15 percent vegetable oil (B15) with solar, the government will increase it to 20 percent (B20). Around Rp8 billion from crude palm oil exports or CPO Supporting Fund (CSF) has been prepared for the subsidy.

    Indonesian Oil Palm Estate Fund (BPDP) president director Bayu Krisnamurthi said next year, the agency will allocate subsidy fund for Pertamina if there is a price difference between bio-fuel and mineral fuel. Bayu will also prepare subsidy for mixing of 30 percent vegetable oil (B30) for PT Perusahaan Listrik Negara’s (state electricity company) power plants. “Next year, we will allocate Rp8 trillion for B20 and B30. The Rp1.5 trillion will be for replanting program and education expenses,” said Bayu on Monday, October 19.

    For the preparation, today the government conducted test on seven cars using B20 fuel to go on a road show of 5,000 kilometers distance going through Jakarta, Medan and then back to Jakarta. The seven cars are scheduled to return on November 2. “We hope the test goes smoothly,” said Bayu.

    For this trial, the cars carry fuel reserves of 700 liters of pure solar and 3,500 liters of biodiesel (B20). After returning to Jakarta, the Energy and Mineral Resources will conduct evaluation.