Jakarta – The government started the mandatory program of the palm oil-based biodiesel 35% (B35) on Wednesday, 01 February 2023. The B35 is a blending of 35% palm oil-based biodiesel (from FAME) and 65% petroleum diesel.
“The B35 will soon enter all modes of transportation that use the biodiesel as fuel. It’s estimated that the allocation of the palm oil-based biodiesel will reach 13.15 million kiloliter per year,” Musdhalifah Maschmud, Deputy in charge of foods and agribusiness coordination at the economic coordinating ministry, said on Tuesday, 31 January2023.
Musdhalifah said that the Indonesian government can implement the B35 due to the existence of the oil palm plantation fund management board (BPDPKS), which was initiated by the government, palm oil industry players, and oil palm smallholders. BPDPKS was established to collect and manage fund from the palm oil exports and use it to finance the development of the industry.
According to her, the good performance of BPDPKS in managing the palm oil fund has contributed to the efforts of maintaining the price of Crude Palm Oil (CPO). “To keep the price, BPDPKS needs to intervene in the market by absorbing the palm oil produced by smallholders. It also helps smallholders to improve productivity and sustainability through replanting programs,” she said.
Energy and Mineral Resources Minister Arifin Tasrif said that the B35 program is an upgrade from the previous B30 program which had been successfully implemented. “Last year, through the B30 program we managed to reduce our import of petroleum diesel and save US$8.34 billion or around Rp122.65 trillion in foreign exchange,” Minister Arifin said on Tuesday, 31 January 2023.
Arifin said that during 2022, the realization of biodiesel use reached 10.45 million kiloliters, exceeding the target set at 10.1 million kiloliters. “This year, under the implementation of B35 program we project it will reach around 13 million kiloliters,” he said.
PT Pertamina Patra Niaga’s President Director Alfian Nasution said that PT Pertamina has prepared its supporting facilities to store and distribute a total of 9.9 million kiloliters of the B35. “Previously, under the B30 program we received around 8.5 million kiloliters. But now under the B35 program we’ll receive 9.9 million kiloliters,” he said during a public discussion on the implementation of B35 for national energy security and sovereignty in Jakarta on Tuesday, 31 January 2023.
Source: TEMPO.CO/Kompas.com/SAWITKU.id
