Observer Says Scarcity Of Cooking Oil Doesn't Affect B30 Program

JAKARTA - Energy Watch Executive Director Mamit Setiawan said that the recent shortage of cooking oil will not affect the B30 program launched by the government. To note, B30 itself uses CPO as a blend.

According to him, the need for Fatty Acid Methyl Ester (FAME) in this case Crude Palm Oil (CPO) for this program is not much.

"So far, based on the data I have, Pertamina's needs are not so great that the scarcity that occurs does not occur because of the B30 program," he told VOI, quoted Tuesday, March 15.

He continued, in 2021 ago, Pertamina's FAME needs were only 7.5 million kilo liters or 6.5 million metric tons per year where based on GAPKI data, CPO production throughout 2021 was 46.88 million tons.

"This means that Pertamina's FAME needs are only 13 percent of the total national CPO production," he added.

In 2022, continued Mamit, GAPKI projects that CPO production will be 49 million tons and the need for the biodiesel program with the B30 program, which requires 8.83 million tons.

"So in my opinion, this biodiesel program will not have a significant impact on domestic CPO needs," he said.

Mamit added that in fact CPO exports throughout 2021 were very large, including CPO, Processed CPO, Oleochemicals and biodiesel which reached 34.2 million tons. Meanwhile, only 18.42 million tons are sold domestically.

For that, according to him, the B30 program will not be affected by the scarcity that occurs.

"I think it will continue because this is a mandatory program. It is regulated by the Ministry of Energy and Mineral Resources for this biodiesel program. Pertamina is only in a position to run. If the government revises this policy, I think Pertamina will follow suit," concluded Mamit.