Indonesia to Implement B40 Program Next Year
The Indonesian Government has set the target of implementing Biodiesel 40 (B40) program next year and B50 in 2021.
“Step by step, we hope to implement the B40 policy next year and B50 in 2021. This is our target. If we can achieve these steps, I think we can boost our foreign exchange reserves,” President Jokowi told reporters after launching the implementation of B30 program at a gas station operated by state-owned oil and gas company Pertamina on MT. Haryono street in Jakarta, Monday (23/12).
The President has previously stated that the implementation of B30 program is expected to save foreign exchange of Rp63 trillion. He also expressed hope that the implementation of B40 and B50 programs will continue to further save Indonesian foreign exchange reserves.
“This is what I often say. To improve our current account deficit, we have to increase import substitution, import substitution products. In addition, if the petrochemicals project can also be completed, the TPPI refineries will also save us a lot because our petrochemical product import is also very high,” the President said.
The implementation of Biodiesel policy, the President added, will increase Indonesia’s independence as Indonesia will not depend on export markets and other countries that want to buy Indonesian CPO.
“It’s alright if they don’t buy it, we can consume it ourselves. Our bargaining power becomes stronger. Moreover, this is also clean energy,” he said.
On the logistical difficulties to transport CPO to refineries to be used as B30, the President acknowledged the complexity of this problem. However, the President also stated that Pertamina’s refineries are capable to handle the B30, B40, and B50 production. (HIM/OJI/ES)
Translated by: Fairuzzamani Inayatillah
Reviewed by: M. Ersan Pamungkas