National Biodiesel Absorption Reached 4.36 Million KL in Semester 1

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 269.Pers/04/SJI/2020

Date: 3 September 2020

National Biodiesel Absorption Reached 4.36 Million KL in Semester 1

Since implemented in January 2020, the mandatory mixing of 30 percent of biodiesel (Fatty Acid Methyl Ester, FAME) into automotive diesel oil Solar (B-30) has lifted the domestic use of biodiesel. Until mid-2020, record shows 4.36 million kiloliters (kl) of biodiesel have been absorbed, or reaching about 68% compared to the absorption volume in 2019.

"The pandemic is said to have slowed biodiesel absorption a little because of the low absorption by the transportation sector, but the government is optimistic that by year's end, FAME absorption will be higher than in the previous year due to the effects of the B-30 implementation," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR Agung Pribadi in Jakarta on Thursday (3/9).

Biodiesel consumption has grown significantly since 2016. In 2018, the consumption reached 3.75 million kl or growing by almost 50 percent from consumption in 2017 which reached 2.57 million kl. The mandatory mixing has continued to be imposed that in 2019 biodiesel consumption totaled 6.39 million kl.

Hopes for Oil Palm Farmers

Besides reducing the dependency on imported fuels, the utilization of biodiesel for vehicle fuel is expected to give larger multiplier effects to oil palm farmers. Support and appreciation have been expressed by various people, including Research Manager of Traction Energy Asia, Ricky Amukti.

"In the future, I hope the mandatory mixing allows independent farmers to directly contribute to the biodiesel supply chain. Additionally, I hope there will be other policies that will support the contribution," said Ricky on a separate occasion (3/9).

Ricky expressed his appreciation for the government's effort in supporting oil palm farmers through the biodiesel utilization policy. "On several occasions, the President has always said that biodiesel will absorb independent farmers' oil palm production, the last time was when he delivered the presidential speech at the Plenary Session of the House on 14 August. I hope there will be a huge leap in the improvement of farmers' welfare," he concluded. (IY)

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

Agung Pribadi (08112213555)

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