Extended Mandatory B20 Takes Effect; No Change in Fuel Price

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  • TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution said the price of biodiesel in gas stations (SPBU) would not increase despite the government extended a policy of mandatory use of 20 percent palm oil blend in Solar-branded diesel (Mandatory B20). 

    “The fuel price in SPBU remains the same, no changes occur,” said Darmin at his office, Jakarta, Friday, August 31.

    The fuel price, Darmin added, would not raise despite the increased price of palm oils because the Oil Palm Estate Management Fund Agency (BPDP) would cover the gap of the price hike.

    “BPDP will handle all delivery cost including the distribution if necessary,” Darmin said, adding that the government would subsidize the Public Service Obligation (PSO) Solar-branded fuel if the price increase.

    The government has officially enacted the expansion program of mandatory use of 20 percent biodiesel blend (mandatory B20) simultaneously throughout Indonesian regions per today, September 1.

    According to Darwin, the policy aimed at cutting the deficit and fuel oil import, as well as saving foreign exchange. The state trade deficit has reached some $1.1 billion and one of the causes is the increasing cost of oil and gas imports which worth more than $5 billion.