In the implementation of mandatory use of biodiesel as fuel – known as B20 program -, President Joko “Jokowi” Widodo has expressed hope that the B20 program can be converted into B30 program in January next year, then into B50 at the end of 2020.

“We hope the conversion to B30 can be accelerated to reduce dependency on fossil fuel and fuel import,” President Jokowi said in his remarks during a limited cabinet meeting on Implementation Evaluation of the Mandatory Use of Biodiesel (B20) program at the Presidential Office, Jakarta, Monday (12/8).

According to the President, the government can save approximately US$5.5 billion per year from the consistent implementation of the B20 program. It can also encourage demand for domestic Crude Palm Oil (CPO) and bring positive impacts to around 17 million palm farmers and palm oil workers, he added.

The President added the European Union’s discrimination against palm oil must be anticipated by strengthening Indonesia’s bargaining position.

President Jokowi also instructed his Cabinet to conduct a thorough study on the possibility to process palm oil into jet fuel to reduce jet fuel import and narrow down deficits in trade and current account balances.

In addition, the President also maintained that he would monitor the implementation of B20 program, including the progress to convert to B30 program.

“I might use the service of the Development Finance Comptroller (BPKP), Price Waterhouse (PricewaterhouseCoopers, red) or other agencies to ensure that the policy is well-implemented,” he said.

The Head of State also instructed state-owned oil company PT Pertamina to provide report on the utilization of CPO through cold processing in their oil refineries to produce green diesel and green gasoline. “Aside from Pertamina, palm oil refinery factories must also develop stand-alone green fuel (production plant) to stimulate development of national green refineries,” the President concluded.

Average monthly diesel import this year has dropped by 45% compared to that in 2018, Coordinating Minister for the Economy Darmin Nasution has announced.

According to him, the decline was caused by the implementation of the mandatory Biodiesel 20 (B20) program which started last year. The realization of B20 program has reached 97.5% of the plan outlined a year ago, he added.

(Selengkapnya dapat di baca di Majalah Sawit Indonesia, Edisi 94, 15 Agustus – 15 September 2019)


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