Jokowi Signs CPO Fund Legal Framework

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo has signed a government regulation and a presidential regulation that will serve as the legal framework for the government’s CPO supporting fund policy. "[The regulations] have been signed, now we wait for the minister regulation," said Rida Mulyana, Director General of New and Renewable Energy, and Energy Conservation on Thursday, May 28, 2015.

Rida said that the new Government Regulation No. 24/2015 has been signed on May 18, 2015, while the Presidential Regulation on the Collection and Utilization of CPO Supporting Fund was signed on May 25, 2015.

However, Rida explained that the CPO supporting fund and 15 percent biodiesel policy can only be implemented after the Energy and Mineral Resources Minister issued a regulation on market price index, which will be used as a reference by state-owned oil and gas company Pertamina for biodiesel procurement process.

Another regulation that needs to be issued before the policy can be implemented, according to Rida, is the Finance Minister Regulation on the establishment of a public services agency that has the authority to organize and determine CPO supporting fund tariffs.

The CPO supporting fund is a fee that will be collected to cover for biodiesel processing cost in relation to the 15 percent biodiesel program.

PINGIT ARIA