Fine Imposed to B20 Suppliers for Sluggish FAME Distribution
27 September 2018 06:52 WIB
TEMPO.CO, Jakarta - The Coordinating Ministry of Economic Affairs asserted that fines will be imposed to whichever business entities in the field of biodiesel fuel or ordinary fuel that is proven to hamper the distribution of B20 fuel.
Coordinating Minister of Economic Affairs Darmin Nasution assured that the ministry continues to evaluate the policy’s implementation since its inception.
“We will accelerate the realization to impose fines to avoid being looked down upon,” said Darmin on Wednesday, September 26.
Read also: KAI Turns to Biodiesel to Comply with Govt B20 Policy
Distributors such as Pertamina are currently faced by the lack of raw material upon producing the 20 percent biofuel (B20), which is Fatty Acid Methyl Esters (FAME).
Darmin announced that the ministry will decide which biofuel or fuel business entities that will be fined within the next two weeks.
The weak amount of supply to produce the B20 fuel was revealed by Gandhi Sriwidodo, who acts as Pertamina’s Director of Logistics, Supply chain, and Infrastructure, during a meeting with members of the House of Representatives (DPR).
Gandhi revealed that the distribution of FAME to Pertamina has only reached 62 percent from this month’s initial goal. Meaning that Pertamina realistically only received 224.6 thousand kiloliters, and is down 100 thousand kiloliters to further produce the B20 fuel.
YOHANES PASKALIS