Govt' to Incorporate Biofuels into Conventional Fuel in 2015  

TEMPO.CO, Jakarta - The government plans to speed up the implementation of its' mandatory biofuel content policy by upping its’ target from 10 percent to 20 percent. "This year, we are aiming to increase the incorporation of biofuels into conventional fuels to around 15 percent," said the Minister for Energy and Mineral Resources, Sudirman Said at the Coordinating Ministry for the Economy complex on Monday, March 16, 2015.

The mandatory biofuel content policy - which aims to encourage the mixing of renewable fuels derived from vegetables into conventional petrol and diesel fuels - is one of the eight policy directives that was decided upon by the government as a part of its' effort to minimize the impact of the continuously depreciating Rupiah against the US Dollar. It is known that the government aims to begin socializing this particular policy directives beginning in April 1, 2015.

Sudirman said that once implemented, the mandatory biofuel content policy could help save on Indonesia's expenditure by up to US$1,3 billion. Apart from the savings, the policy is also expected to boostt the growth of Indonesia's crude palm oil (CPO) producers - as CPO demand is expected to rise by 3.5 million kiloliters, once the policy is socialized and implemented, said the Minister.

Previously, Sudirman had also been quoted of saying that using biofuel as an alternative to traditional fuels could reduce Indonesia’s dependence on fuel imports by at least around 15 percent. The Minister also said that in order to help popularize and ensure the success of the mandatory biofuel policy, the government is planning to repurpose tens of millions of unproductive areas - which ranges from areas which had been damaged by mining activities, as well as by clearing some under-utilized forested areas - to be utilized as productive plantations whose sole purpose is to provide a place to grow renewable energy resources.

The Coordinating Minister for the Economy, Sofyan Djalil, said that the policy will be imposed on both subsidized and non-subsidized fuels - including a Solar [a brand of diesel fuel marketed by state oil-and-gas company, Pertamina). "Whoever decides to import Solar needs to ensure that their product must contain at least 15 percent of biofuel," he said, before adding that whomever fails to do so faces the risk of sanctions - including Pertamina.

"Once the industry is ready, we will raise the mandatory biofuel content to around 20 percent. Furthermore, once it becomes a public law, we have the right to impose sanctions on any offenders, regardless of who they are," said Djalil.

AYU PRIMA SANDI | KHAIRUL ANAM