Minister of Energy and Mineral Resources (ESDM) Launches Implementation of Mandatory Utilization 15% biodiesel (B15)

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launching-biodieselJakarta – Minister of Energy and Mineral Resources (MEMR) Sudirman Said on today, Monday (23/3), at the office of the Ministry of Energy and Mineral Resources, officially launched the Implementation of Mandatory Utilization 15% biodiesel (B15). This event aims to provide a detailed explanation for 10 days after the Government prepares B15 program since President announced a package of economic structural reform policies Indonesia which was attended by stakeholders from the government, oil producers, biodiesel producers, fuel enterprises, automotive and heavy equipment manufacturers, observers and practitioners of biodiesel and related associations.

Support from the technical side has been carried out by the Ministry of Energy and Mineral Resources in 2014 to facilitate the use of the B20 road test on a vehicle that is supported by the association said Pertamina, BPPT and APROBI as biodiesel stakeholders. A review and road test to prove that the use of biodiesel can be performed on the vehicle or diesel engines up to 20% (B20) without being discovered problems or engine modifications. Expected that all relevant stakeholders, both government agencies, private sector, civil society and the media take an active role to support and oversee the B15 so that it can run properly.

The government is currently preparing a fiscal policy instruments in order to support the implementation of the B15 through control of the supply of palm oil used as raw material for biodiesel. Including the review of the HIP Biodiesel because of the support of palm oil producers who contribute to the supply of raw material for biodiesel.

The current development indicates that the disparity between the Market Price Index (HIP) biodiesel with diesel fuel prices increased. Therefore, it is necessary to be able to cope with these conditions through the provision of palm oil for biodiesel in volume and reasonable value. Availability CPO as raw materials Biodiesel is sufficient that CPO production in 2014 reached 31 million tons with domestic consumption by 30% of the total production and will increase to 33 million tons in 2015.

In 2015, the Government has issued six policy package to respond to the weakening of the rupiah against the US dollar, one of which is an increase of 15% biodiesel blending obligation (B15). B15 utilization policies need to be implemented in order to support macroeconomic policy and save foreign exchange through reduced fuel oil imports. Mandatory implementation will be able to absorb B15 biodiesel production in the country of 5.3 million KL (equivalent to 4.8 million tonnes of Crude Palm Oil (CPO)) and provide foreign exchange savings amounting to 2.54 billion USD.

Since 1 September 2013, the mandatory use of biodiesel increased to 10% (B10). With this policy, the actual implementation of the mandatory biodiesel in 2014 reached 1.84 million kiloliters (kl), or an increase of 75% compared to the achievements of the mandatory biodiesel in 2013. Utilization of biodiesel mixed into Type Specific Fuel Oil (JBT) become a contributor The major performance improvement, amounting to 1.16 million kiloliters (equivalent to 62.7% of the total achievement in 2014).