Biodiesel 20 Strengthens National Self-Sufficiency, Minister Says

Minister of Industry delivers a press statement after a Limited Meeting, at the Presidential Office, Jakarta, Friday (20/7) (Photo: PR/Jay)

Regarding the Government’s plan to implement use of B20 biodiesel – or fuel with a 20 percent biodiesel content – Indonesian Minister of Industry Airlangga Hartarto said that national CPO (crude palm oil) production, which is the raw material of biodiesel, reaches 38 million tons in 2017, in which 7.21 million tons are for exports and 8.86 million tons are for national food needs.

“It means the CPO can be used for energy without giving pressure for food sector,” Airlangga said during a joint press statement with Coordinating Minister for the Economy Darmin Nasution and Cabinet Secretary Pramono Anung after a Limited Meeting, at the Presidential Office, Jakarta, Friday (20/7).

Airlangga added that the Government would also revise the Presidential Regulation (on this matter) so that it includes non-PSO (public service obligation) in which the consumption reaches 16 million tons. Thus, he added, there will be a 3.2 tons- increase in biodiesel demand per year. However, the Minister said that he would discuss the technical matters on amount of time required to reach that figure.

“We hope it can be implemented by using the same distribution pattern applied to PSO and non-PSO, which is by involving private sectors,” he added.

The Minister added that the Government’s next mid-term plan after the B20 is implemented to PSO and non-PSO, is promote industry towards biofuel 100 percent. He also explained that technology for biofuel 100 percent is already available, the same technology as fuel oil. Thus, it will not interfere with technical conditions of vehicles, power stations, and others, he said.

With that condition, the Government is confident of a substitution from biodiesel import to biofuel/biodiesel 100 percent or is often referred to as green diesel, he added.

“Thus, we are changing from biodiesel 20 percent to biodiesel 100 percent or green diesel; and, the Government will set the time. Therefore, we will have endurance or self-sufficiency,” Airlangga said, adding that all processes are done within the country by using domestic raw material.

“It will bring multiplier effects to 17 million farmers, 17 million growers. This is the role of the Government to develop self-sufficient economy,” Airlangga concluded. (DND/FID/ES) (RAS/EP/Naster)