Energy Ministry Adds Biodiesel Allocation for 2021

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 422.Pers/04/SJI/2021

Date: 30 November 2021

Energy Ministry Adds Biodiesel Allocation for 2021

The Ministry of Energy and Mineral Resources (EMR) has set an additional allocation of biodiesel of 213,033 kl, or to 9,413,033 kl, to meet demand until the end of 2021.

The additional allocation is set out in Decision of Minister of EMR Number 149.K/EK.05/DJE/2021 of 30 November 2021 on the Third Amendment to Decision of Minister of EMR Number 252.K/10/MEM/2021 on Determination of Oil Fuel Business Entities and Biodiesel Business Entities and the Allocated Volume for Solar Diesel Mixing for January-December 2021.

Previously, the Ministry of EMR allocated 9.2 million kl of biodiesel for the year 2021. Until week four of November, a total of 8.08 million kl or 87.9% of the allocation had been used.

Director General of New, Renewable Energy and Energy Conservation, Dadan Kusdiana, said that increased public activity had led to a higher demand for fuels.

"The successful implementation of the Public Activity Restriction (PPKM) program by the government has made public activity gradually returns to normal. This has led to a higher demand for fuels, including Solar diesel, which has shown an upward trend since September 2021," said Dadan in Jakarta on Tuesday (30/11).

For 2022, the Ministry of EMR has set a biodiesel allocation of 10,151,018 kl in Decision of Minister of EMR Number 150.K/EK.05/DJE/2021 of 30 November 2021 on Determination of Oil Fuel Business Entities and Biodiesel Business Entities and the Allocated Volume for Diesel Oil Mixing for January-December 2022.

As many as 22 fuel distribution companies will support the biodiesel program in 2022 with a total installed capacity of 15,493,187 kl and annual production capacity of 13,527,527 kl.

The Ministry of EMR hopes that in 2022, biodiesel will be distributed more efficiently and with minimal delays or supply failures (B0). The ministry has made a number of improvements, for example, it has set an allocation volume after taking into account of how a biofuel distribution company distributed its biodiesel allocation in the period from 1 November 2020 to 31 October 2021. The ministry has also decided that at least two biofuel distribution companies should supply a delivery point, prepared a formula to determine transportation costs, selected biofuel and fossil fuel distribution companies based on optimized routes to make sure that transportation costs are efficient, and created an online application to monitor distribution so as to make mitigation action easier if B0 occurs at a delivery point.

According to the stages to implement mandatory biodiesel use as set out in Regulation of Minister of EMR Number 12 of 2015 on the Third Amendment to Regulation of Minister of EMR Number 32/2008 on the Provision, Utilization and Trading of Biofuels as Other Fuels, the government officially adopted a mandatory program to mix 70% of Solar diesel with 30% biodiesel, or the B30 Program, starting from 1 January 2020.

This program is one of the national priority programs to reduce dependence on fossil energy and transition to clean energy, especially in the transportation sector. (IY)

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