SUBANG – The ministry of energy and mineral resources (MEMR) will start implementing the program of palm oil-based biodiesel 40 percent (B40) early next year. Energy and Mineral Resources Minister Arifin Tasrif said that its road test has been conducted since the end of July 2022 and it is targeted to be completed by November 2022.
“Next month we’ll file a proposal to President to start using B40 from 01 January 2023,” Minister Arifin said when seeing off the team of B40 road test in Subang, West Java, on Tuesday, 01 November 2022.
Arifin said that based on the results of monitoring and evaluation, the B40 product can meet the current energy need. “Its use can also support the efforts of reducing carbon emissions. The government is aiming to use all available energy sources. The conflict of Russia-Ukraine, which has affected the global supply of energy, has reminded us the importance of maintaining energy supply and security,” he said.
“Oil is used for land, sea and air transportation. We need to make preparations, trying to utilize all sources of renewable energy,” Arifin said, adding that through a series of tests, the government hopes that the target of implementing B100 can be finally realized later.
Meanwhile, the MEMR’s New and Renewable Energy and Energy Conservation Director General Dadan Kusdiana said that they have completed the stages of supervising and evaluating the program. “We have to implement a number of our home works to support the B40 program. Those are particularly concerned with the infrastructure prepared by Pertamina and other related companies,” he said.
According to him, the available blending facilities were designed for B30 program. “So we need an adjustment if we want to implement the B40 program,” he said.
Price Stability
Commenting on the government’s B40 plan, the Indonesian Palm Oil Association (GAPKI) has stated that the upgrading of B30 to B40 program will stabilize the price of palm oil at the domestic market of Indonesia.
GAPKI Secretary General Eddy Martono said the biodiesel program will help the government in saving foreign exchange from the import of diesel fuel and stabilize the price of palm oil at domestic market.
“The B40 program will increase the local absorption of CPO that will then maintain the stability of its price,” he told Kontan.co.id on Thursday, 03 November 2022.
Eddy ensured that with the current condition of CPO production, there will be no problem regarding its supply for the production of biodiesel. He said that in 2021 the need of CPO for biodisel reached 7.3 million tons and as of August 2022 it had reached 5.7 million tons. The CPO production as of August 2022 reached 28.8 million tons. “It means there is no problem with CPO supply for the production of biodisel,” he said.
But Eddy noted that one thing that should be seriously considered to sustain the CPO supply for biodiesel production is the necessary step to avoid competition between the need of palm oil for foods and for energy. (*)
Source: KONTAN.CO.ID
