Ministry: Indonesia Saves up to Rp23tn from Biodiesel Use

TEMPO.CO, Jakarta - The Deputy Minister of Energy and Mineral Resources (ESDM), Arcandra Tahar, announced Indonesia saved up to US$1.66 billion or Rp23 trillion after implementing a policy of the mandatory use of 20 percent palm oil blend in Solar-branded diesel (B20 biodiesel). The saving was obtained from the declining imports of solar fuel throughout January-July 2019.

“We have saved some US$1.66 billion from January to July 2019,” said Arcandra at the Coordinating Ministry for Economic Affairs office, Jakarta, Monday, August 12.

During the period, the ministry recorded the absorption of fatty acid methyl esters (FAME), the raw material for producing biofuel, reached 2.9 million kiloliters from the targeted 6.2 million kiloliters.

At the same time, the government is testing the use of B30, which is scheduled to complete in October. The government also continues to run evaluation.

However, Arcandra could not ensure yet as to when the policy would be imposed. “What is certain is that we are evaluating it while running the trial,” he said. In June 2019, the Central Statistics Agency (BPS) recorded all components of oil and gas imports declined by US$469.2 million.

The mandatory use of B30 was expected to jack up the domestic consumption of biodiesel up to 6.9 million kiloliters in 2025. In 2018 alone, the consumption reached 3.8 million kiloliters, buoyed by the massive implementation of B20.

CAESAR AKBAR | HENDARTYO HANGGI