Government Designing Strategic Plan On B40 Development

Jakarta  – Energy and Mineral Resources Minister Arifin Tasrif said that the government is designing a strategic plan to develop the palm oil-based biodiesel 40 percent (B40).

“There are a number of strategies to realize the target of B40 production. Among them is through development of green diesel by co-processing in the refinery of PT Pertamina (RU II Dumai) in 2022,” he said during a webinar in Jakarta recently.

Pertamina was reported to develop two standalone bio-refineries in Cilacap, Central Java, in 2022 and in Plaju, South  Sumatera, in 2024. The two bio-refineries will produce green diesel and green avtur with 100% raw material from the vegetable oil.

Then, the ministry of energy and mineral resources (MEMR) will also develop the green gasoline from the crude palm oil (CPO), popularly known as “Bensin Sawit Rakyat” (people’s palm gasoline), which will involve the smallholders in Musi Banyuasin, South Sumatra.

“Currently, we’re preparing a pilot demonstration plan in Bandung, West Java. This will be then realized in small units in regions, hoping that the regions will be self-sufficient in energy by using the CPO,” Minister Arifin said.

The minister noted that currently the government has been implementing the policy of mandatory production of B30, which is aimed to stop the import of oil fuels in 2027, reduce carbon emissions and increase the palm oil absorption at local market. “The biodiesel policy implementation will also save our foreign exchange, and increase the welfare of smallholders and growers,” he said.

He pointed out that the biodiesel mandatory policy has been successfully implemented for the last 15 years and has made Indonesia as the pioneer in producing the biodiesel with blending rate of 30%.

Recently, the government has successfully implemented the CN 235-220 Flying Test Bed (FTB) by using bio-avtur from Bandung to Jakarta and vice versa.

“The flying test shows a satisfactory result that has encouraged us to further improve it. There is a new sector that we can develop by utilizing our natural advantages. Our bio-avtur is potential for further development to enter the international market,” Arifin said. (*)