Airlangga: B40 Will Continue To Support 17m Smallholders

The government has reaffirmed its commitment to continue the mandatory program of biodiesel 40 percent or B40 despite of the Covid-19 pandemic that had weakened the national economy.

Economic Coordinating Minister Airlangga Hartarto said during an exclusive interview with CNBC Indonesia last Thursday (30/7/2020) that the B40 program is concerned with the fate of tens of millions of oil palm smallholders who rely on the palm oil industry.

“Its implementation needs the commitments of all stakeholders, including state-owned PT Pertamina and other oil-gas producers. It is aimed to support 17 million oil palm smallholders who rely on the palm oil industry,” Minister Airlangga said during a CNBC Exclusive Interview titled “Biodiesel post Covid-19 pandemic, go on or stop?” at CNBC Indonesia last Thursday.

“We have to support the implementation of the program. It will create many benefits, not only economic benefit, to our country,” he said.

One of the targets of the biodiesel program is to increase the absorption of palm oil to produce the fatty acid methyl esters, which will provide 40 percent mixture of the B40 product as the continuation of the previous B30 program.

He said that in the future the biodiesel mixture will be further increased. “We will further increase the biodiesel program implementation with the D100, which is 100 percent processed from palm oil in July 2021,” he added.

He pointed out that to achieve the target, all related government institutions should move quickly. The Covid-19 pandemic should not become a hurdle that will hinder or slow down its development.

“Next year, the ministry of energy and mineral resources (MEMR) and the technology assessment and application board (BPPT) will cooperate in the production of the biodiesel for vehicles. I hope the program will progress well,” he said. (tas/tas)

Source: CNBC Indonesia | Featured image via