Indonesia Energy Ministry: Semester I 2021, Mandatory B30 Provides Savings of Up to IDR 29.9 Trillion

The mandatory B30 program or mixing 30 percent of biodiesel with 70 percent of diesel oil has been implemented since January 1, 2020. This program has also become one of the national priority programs to reduce emissions while reducing dependence on fossil energy, especially in the transportation sector.

Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources Dadan Kusdiana said that the achievements of the B30 program in the first semester of 2021 further confirm Indonesia’s success as a world B30 pioneer.

“The supply and utilization of B30 has put Indonesia in a leading position in the world in the implementation of biodiesel. The B30 program has been enjoyed by consumers who use engines with diesel fuel in both the transportation sector and other industrial sectors,” said Dadan in Jakarta, Sunday (25/25). 7).

Dadan said, in the first semester of 2021, the volume of biodiesel that had been distributed was 4.3 million kilo Liters (kL) or 46.7% of the biodiesel distribution target in 2021, and provided economic benefits equivalent to Rp. 29.9 trillion. This figure consists of foreign exchange savings of IDR 24.6 trillion and added value from Crude Palm Oil (CPO) to biodiesel of IDR 5.3 trillion. In addition, the implementation of biodiesel has also succeeded in reducing CO2 emissions by 11.4 million tons of CO2e.

In 2021, the biodiesel allocation is set at 9.2 million kL, supported by 20 BU BBN participating in the FAME procurement and 20 BU BBM which are required to mix Biodiesel Type BBN with Diesel Oil Type Fuel. The average monthly absorption is estimated at 766 thousand kL. From January to June 2021, the average achievement of monthly Purchase Order fulfillment reached 93.03%, with the lowest absorption in January and the highest in June 2021.

The Covid-19 pandemic is suspected to have slightly slowed the absorption of biodiesel due to restrictions on mobility, resulting in a decrease in biodiesel uptake in both the transportation and industrial sectors. However, the government is optimistic that by the end of the year biodiesel absorption will reach the set target.

Several obstacles that occurred in the distribution of biodiesel in Semester I include limited storage tanks, delays in FAME unloading due to overcrowding in the jetty, and equipment damage at the BUBBN plant. To ensure that the distribution of B30 runs smoothly and that there is no distribution of B0 (pure diesel), several efforts are continuously being made, including encouraging the acceleration of the preparation of additional storage tanks, adding jetty facilities , increasing supervision, and appealing to the BUBBN industry to avoid unplanned maintenance . e. (DLP/KO)