Minister Airlangga Claims B35 Biodiesel Saves US$10.75bn in Foreign Exchange

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Economy Airlangga Hartarto said the implementation of the 35 percent blended biodiesel (B35) policy would save up to US$10.75 billion in the country’s foreign exchange and provide added value to the palm oil industry of Rp16.76 trillion.

“The B35 policy is also estimated to reduce greenhouse gas emissions by 34.9 million tonnes of CO2. As a developing country, Indonesia surely promotes affordable green energy,” said Airlangga in a talk show on the B35 implementation for energy independence at the Coordinating Ministry HQ, on Tuesday, January 31, 2023.

B35 is a mixture of 35 percent crude palm oil or CPO and diesel fuel. Airlangga explained that the program kick-started in 2006 with a mixture of 2.5 percent, and was then increased to 20 percent in 2012 and 30 percent in 2020.

He also recalled that B30 made a huge contribution to achieving 36 percent of the new renewable energy (EBT) program in 2021. “Indonesia has initiatives in the B35 program, and we will enhance this,” the Coordinating Minister emphasized.

Airlangga further asserted that the B35 biodiesel program would not disrupt the supply of CPO for consumption as the producers guaranteed the supply in the country. According to him, there would even be an increase in cooking oil supply to around 450,000 tons per month from previously around 350,000 tons.

RIRI RAHAYU

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