JAKARTA – The Indonesian government has targeted to start the use of biodiesel 40 percent (B40) for vehicles this year. The B40 will be produced with the mixture of 60 percent diesel fuel and 40 percent from the processing of crude palm oil (CPO).
Until last year, the biofuel production is only blended with 30 percent fatty acid methyl ester (FAME) or biofuel 30 percent (B30). But this year the government has planned to upgrade the mandatory biofuel to B40.
The energy and mineral resources’ (MEMR) new and renewable energy and energy conservation directorate general projected the total consumption of CPO for the biofuel production this year will reach 10.15 million kiloliters with a total fund needed for the program at Rp35.41 trillion. The MEMR noted that the fund will be derived from the export levies collected by the oil palm plantation fund management board (BPDPKS).
But recently, the B40 program has been facing the problem of rising price of crude palm oil (CPO), which was resulted from a tight supply but rising demand at the global market. The CPO price increase has also pushed up the prices of downstream palm oil products, such as cooking oil, at domestic market. But the use of CPO as the source of foods and energy is no longer considered as contentious issue.
Through its mandatory biofuel program, the government has ensured the supply and price of CPO for the biodiesel production. “For the B40 production, there is no problem with the supply of 10.1 million kiloliters of CPO this year,” Paulus Tjakrawan, the vice chairman of the association of Indonesian biofuel producers (Aprobi) told Bisnis.com recently.
He also mentioned the new policy on CPO that was recently issued by the government to secure its supply at local market, especially as raw material to produce cooking oil. “Regarding the government’s plan to apply DMO (domestic market obligation) policy for CPO producers, I think it should be carefully implemented as it involves many stakeholders and potential to affect many other economic sectors,” said Paulus.
The government has targeted to conduct the test of B40 in February 2022. The automotive business players have been ready for its implementation.
PT Daimler Commercial Vehicles Indonesia (DCVI) Product and Marketing department head Faustina Tjandra said that the test of B40 will be conducted with several versions of content. “Road test of B40 will be implemented with several versions of combinations, such as FAME 30% with HVO (Hydrotreated Vegetable Oil) 10% or FAME 30% with DPME (distilled palm oil methyl ester) 10 percent or other combinations. We’ll have yet to consider their performances when used in vehicles,” Faustina told Bisnis.com recently.
During the implementation of B30, especially in 2020, the use of biodiesel had managed to cut the import of oil fuels. Aprobi reported that during the period of B30 program implementation, the import of diesel fuel was reduced at US$3.73 billion.
The B30 program also has environmental benefit, as it reduced the carbon emission. Aprobi reported that in 2020 the use of B30 had cut emission up to 24.6 million tons of CO2, or equivalent to 7.8% of the target set for 2030.
Based on data from Aprobi, during January – August 2021, total production of biodiesel reached 8.9 million kiloliters, with domestic consumption reaching 8.43 million kiloliter. The big producers of B30 include Ciliandra Perkasa, Musim Mas, Wilmar Bionergi Indonesia, and Sinarmas Bio Energy.
Source: Bisnis.com
