Minister of EMR Signs Legal Basis for B30 Distribution Trial

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 664.Pers/04/SJI/2019

Date: 18 November 2019

Minister of EMR Signs Legal Basis for B30 Distribution Trial

After the road test of B30 biodiesel (a blend of 30% biofuel and diesel fuel) at diesel engine vehicles show there is no significant difference in vehicle performance, the government will immediately carry out distribution trials to see the readiness of distribution channel and the material quality.

The legal basis for the policy is Decision of Minister of Energy and Mineral Resources Number 227 K/10/MEM/2019 on Implementation of Trials to Blend 30% Biofuel (B30) with Diesel Fuel in the Period 2019, signed by Minister of EMR Arifin Tasrif on 15 November 2019.

"The issuance of this Ministerial Regulation related to B30 is to prepare for the B30 implementation in early 2020. With this trial, we hope to see how things will go, so we will have smooth implementation later in 2020," said Head of Bureau of Communication and Public Information Services of Ministry of EMR, Agung Pribadi, Monday (18/11).

According to Agung, the issuance of the Ministerial Regulation is aimed not only to better prepare for B30 distribution but also to save the foreign exchange reserves from reduced diesel imports of about 10% compared to the previous B20 program. "We also hope we can immediately calculate the diesel fuel subsidies which are certain to be lower with the use of B30 in the future. With the trial, subsidies will be reduced by 10%," said Agung.

Distribution trial of B30 as fuel will be carried out in eight distribution regions, namely Fuels Terminal (TBBM) Rewulu, TBBM Medan, TBBM Balikpapan, TBBM Plumpang, TBBM Kasim, TBBM Plaju, TBBM Panjang, and TBBM Boyolali in Central Java. With the start of B30 distribution trial, the government estimates there is an additional of about 72,000 liters of biodiesel absorbed until the end of the trial period. For the mandatory B20, the government has allocated about 6.6 million KLs of biodiesel until the end of 2019.

The increased use of biodiesel as one of New, Renewable Energy (NRE) through the B30 implementation is a directive of the President of Republic of Indonesia, Joko Widodo, in an effort to reduce deficit. The President reiterates measures to increase domestic oil production that must be done to support domestic policies as well as reduce fuel oil imports.

"I want to reiterate the increased oil production in the country so that the segmentation of the new, renewable energy policy must also be accelerated, especially the acceleration of the mandatory B20 to B30, and later to B50 and finally to B100," said the President at a limited meeting about the programs under the Coordinating Ministry for Maritime Affairs and Investment at the President's Office (30/10). (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (081122135)

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