TEMPO.CO, Jakarta - The Energy and Mineral Resources (ESDM) Ministry estimated that the utilization of B40 products, which is a mixed fuel of 30 percent biodiesel and 70 percent diesel fuel, would not be ready until the first half of next year.

“B40 is not ready for at least the first half of 2021. So we will still use B30,” said the ESDM Ministry’s Director General of Renewable Energy and Energy Conservation, Dadan Kusdiana, during a hearing with the House of Representatives (DPR) Commission VII on Monday, November 16, 2020.

Dadan said that the B40 biodiesel program trial was still in the finalization stage. The government was also reviewing the ability to finance incentives for program implementation.

The incentive funding for the B30 program was quite challenging, he added, due to the high price of crude palm oil (CPO), while the price of crude oil was low. Thus, he explained that the price gap needed to be covered by incentives was getting bigger.

The ESDM Ministry’s Research and Development Agency previously targeted the B40 technical test to be completed in November 2020. At the end of this year, the agency will begin evaluating and preparing technical recommendations for the use of B40 products.

Also Read: Govt Eyes Implementation of B40 Biofuel in July 2021

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