Fuel From Palm Oil B40 Is Ready To Use Motorized Vehicles In July 2021

JAKARTA - The government is targeting the implementation of the mandatory 40 percent biodiesel (B40) program by June 2021. This government move has received support from stakeholders in the palm oil industry sector because it is considered to be able to provide welfare for 16 million oil palm farmers.

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia as the fifth largest palm oil producing country in the world certainly has a strategic and decisive position in the world palm oil business.

Furthermore, he said, managing palm oil into fuel can not only reduce the burden of imported fuel oil but also save the use of the state budget.

"In the next year, both the Ministry of Energy and Mineral Resources and BPPT will collaborate through testing the mixing of B30 and B10 on motorized vehicles. I hope this program runs well, on time so that it brings many benefits to the community," he said, in an Exclusive Interview event by CNBC. Indonesia with the title "Post-COVID-19 Biodiesel, Continued or Stopped?" Thursday, July 30th.

Biodiesel B40 is fuel oil (BBM) whose composition consists of a mixture of B30 as much as 40 percent of biofuels and 10 percent of D100 content. This B40 will later be used as fuel for motorized vehicles. Given, the Indonesian government is committed to using more environmentally friendly fuels.

Meanwhile, the President Director of BPDP Palm Oil, Eddy Abdurrachman, admitted that he is optimistic that the mandatory implementation of B40 can be realized in June next year. BPDP is ready to support the government's move.

According to Eddy, so far BPDPKS has provided support in the framework of B40 in collaborative researches and already tested stages, especially in the transportation sector. So that according to the B40 time line it can be implemented in June 2021.

Regarding the readiness of the community to use biodiesel, according to him, so far people are unconsciously accustomed to using biodiesel.

"Unconsciously, the community is actually using it. There are several sectors that take advantage of the B30 program, the first micro-agricultural fisheries business. If we see fishermen use B30. Transportation as well. Electricity development PLN uses B30 now, and industries now use biodiesel diesel," he said.

In the same opinion, the Chairman of the Indonesian Biofuel Producers Association (Aprobi) MP Tumanggor said that the community has been familiar with biodiesel since at least 2015. Basically, the community's readiness is very good.

"Fill it to the gas station even though diesel is already biodiesel. B20, B30 if we fill it is B30," he said.

Tumanggor said the development of B40 for motorized vehicles was the right step. This is because if the biodiesel project is stopped, it will affect 16 million Indonesian oil palm farmers.

"The point is that there are 16 million involved in plantations and the oil palm industry. If you don't continue, there will be 16 million victims," he said.

In addition, he said, another benefit from the development of the B40 is that Indonedia will have extraordinary renewable energy. Moreover, Indonesia's palm oil production reaches 48 million tons, of which 70 percent is for export and 30 percent is for domestic consumption.

"If we don't make biodiesel, the price will definitely go down, say if now it is above 600 it could be like 2015, it was already close to 500 and at that time our economy immediately weakened. Why? Because our foreign exchange earnings fell drastically," he said.

On the same occasion, Deputy CEO of PT Kilang Pertamina Internasional Budi Santoso Syarif added that the B30 and later B40 products would definitely go through a test process on public vehicles. Apart from that, biodiesel is also environmentally friendly, including in the future up to B100.

"As stated by Pak Tumanggor, the 40 thousand KM test runs every day and various road contours and temperatures. We passed Dieng, so it was conveyed to the public that B30 was tested," he said.