TEMPO.CO, South Tangerang - President Joko “Jokowi” Widodo said the government will announce a mandatory use of diesel fuel mixed with 30 percent palm oil (B30).
“We will launch B30 on date 20s. That will reduce our oil imports,” said the President after inaugurating the JORR II toll road in South Tangerang, Banten, Friday, December 6.
On several occasions, he frequently said that oil and gas imports were the highest contributors to the current account deficit and the trade balance deficit. During a limited meeting at the presidential office last August, he targeted the use of 30 percent palm oil-based fuel in early 2020.
The former Jakarta governor also hoped palm oil production could be consumed domestically, and thus Indonesia did not have to fret about the European Union's palm oil discrimination.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the program could save up to US$8 billion or Rp112 trillion, with an assumed rate of Rp14,000 per US dollar.
The mandatory use of B30 is one of the government’s quick win programs expected to be completed soon. The government is presently applying B20 mandatory and will further develop it to B50, B70, up to B100.
In addition, the government is designing a road map on green avtur, which within a year could save up to US$2 million or Rp26 trillion. “The program is expected to recover trade balance and lower the dependence on oil and gas,” Airlangga said.
AHMAD FAIZ IBNU SANI