Energy Minister Underlines Biodiesel Use in IRENA Meeting

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 033.Pers/04/SJI/2021

Date: 21 January 2021

Energy Minister Underlines Biodiesel Use in IRENA Meeting

Biodiesel plays a vital role in strengthening Indonesia national energy security, Minister of Energy and Mineral Resources (EMR) Arifin Tasrif has said at IRENA's 11th Session Assembly under the titled Renewables and Pathway to Carbon Neutrality--Innovation, Green Hydrogen, and Socioeconomic Policies which was held virtually on Wednesday (20/1).

The Indonesian Government is preparing a biodiesel development strategy through the mandatory B30 and B40 program. The program will be periodically monitored and evaluated to facilitate debottlenecking, add supporting infrastructure, and ensure that the incentives are attractive.

"We are conducting a comprehensive assessment on the B40 dan B50, especially about the mixture composition, and economic evaluation which includes preparedness, raw materials, and supporting infrastructure. Road tests on B40 will be continued with trials at existing diesel power stations," said Arifin.

In terms of efforts to increase biodiesel raw materials, Arifin said the Indonesian Governments is developing various raw materials from other domestic natural resources to substitute palm oil. The development is done with minimum land/forest clearing. "The Ministry of EMR is cooperating with relevant stakeholders about the use of reclaimed/post-mining areas and selecting plants suitable for land condition and climate," Arifin explained.

Until 2020, realized use of biodiesel for domestic needs reached 8.46 million kiloliter. The biodiesel use had saved Indonesia's foreign exchange of Rp38.31 trillion. The calculation had been based on the 2020 average of MOPS Solar diesel of USD50 per barrel at an exchange rate of Rp14,400 per United States dollar.

Arifin also presented Indonesia innovations towards carbon neutrality, for example co-firing at coal-fired power plants (PLTU), the use of Refuse-Derived Fuel (RDF), replacement of diesel generators with renewable energy power plants including bio-based ones, the use of geothermal fluids for drying of agricultural products, and biogas.

The Indonesian Government and state energy company Pertamina are developing Green Refineries capable to produce Green Diesel, Green Gasoline, and Green Avtur. Arifin said that in July 2020, Pertamina was able to produce D100 at a refinery in Sumatra island with an initial capacity of 1,000 barrels per day.

The Government will also prepare regulations, incentives, and supporting infrastructure, including fostering the development of the supporting industries.

For the record, International Renewable Energy Agency (IRENA) is an intergovernmental organization that supports countries in their transition to a sustainable energy future. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy through concrete activities.

Indonesia officially became a member of the IRENA on 7 September 2014. Previously, the country ratified IRENA Statute in Presidential Regulation Number 62 of 2014 on Ratification of the Statute of the International Renewable Energy Agency. Indonesia's membership in the IRENA can support its government's efforts to develop new, renewable energy as targeted in the country's National Energy Master Plan (RUEN). (IY)

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