Indonesia to Use Biodiesel 35 Starting August

TEMPO.CO, Jakarta - The government will apply biodiesel 35 or B35 simultaneously nationwide starting Tuesday, August 1. B35 is a fuel with 35 percent biofuel (BBN) mixed into fuel oil (BBM). The B35 was first launched on February 1 this year.

"Since February 1, some places actually already have B35. But there are still several [business entities] terminals providing B30. By tomorrow, every one of them [will] provide B35," Fajar Wahyudi, head of distribution at the Agency Oil Palm Plantation Managers (BPDPKS), said in a discussion dubbed 'Pursuing Foreign Exchanges through the B35 Program' held at the Hotel Sultan, Monday, 31 July.

Fajar said that the use of the funds collected by the BPDPKS for biodiesel purposes was intended to cover the difference between the market price (HIP) of diesel fuel and the HIP of vegetable biodiesel. This is mandated in President Regulation (Perpres) No. 66 of 2018.

Fajar said that in 2022 the BPDPKS paid the difference in HIP to 23 biodegradable business entities. The amount was around Rp34.5 trillion. The volume of biodiesel paid for was almost 7 million kiloliters from distribution in that year, which was 10.36 million kiloliters.

"Payments are made in installments because in biodiesel this payment is usually until October. And for November-December, the payment will be made the following year," Fajar said.

RIRI RAHAYU

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