Down 10.9 Percent, Biodiesel BBN Market Index Price In June IDR 10,234 Per Liter

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) has set the Price of the Nabati Fuel Index (BBN) for biodiesel type for June 2023 at IDR 10,234 per liter.

The price decreased by 10.9 percent from the biodiesel HIP last month, which was IDR 11,493 per liter.

"This stipulation has been effective since June 1, 2023, as stated in the Letter of the Director General of New Renewable Energy and Energy Conservation (EBTKE) Number T-2240/EK.05/DJE.B/2023," said Head of the Communications, Public Information Services and Cooperation Bureau of the Ministry of Energy and Mineral Resources (ESDM) Agung Pribadi in Jakarta quoted on Saturday, June 10.

Agung added that the average price of the Charisma Marketing Palm Oil (CPO) for the period April 25 to May 24, 2023, reached IDR 10,507/kg, the difference of IDR 1,432 per kg from the previous month.

The HIP BBN price for the Biodiesel type is calculated using the HIP = (Averaged CPO KPB + 100 US dollars per ton) x 870 Kg / m3 + Ongkos Transport.

"The amount of transportation costs in the calculation formula for biodiesel prices follows the provisions in the Decree of the Minister of Energy and Mineral Resources No. 21.K/HK.02/DJE/2023," explained Agung.

For information, the HIP BBN itself is set every month and an evaluation is carried out at least once every 6 months by the Director General of EBTKE. For the conversion of the exchange rate using the reference of the Bank Indonesia middle rate for the period from April 25 to May 24, 2023, it is Rp. 14,777.

Previously, the biodiesel HIP was used for the implementation of a mandatory 35 percent biodiesel mixture of diesel oil (B35) starting June 1, 2023, and Pertamina has realized the preparation of facilities and facilities for the implementation of Biodiesel FAME (Fatty Acid Methyl Ester) mixing, which is a crude palm oil (CPO)-based mixture of 35 percent (B35) into Diesel Oil Fuel (BBM).

Director of Bioenergy at the Ministry of Energy and Mineral Resources, Edi Wibowo, said the launch of the B35 product was in line with the Decree of the Minister of Energy and Mineral Resources Number 208.K/EK.05/DJE/2022 dated December 28, 2022, regarding the implementation of B35 which began as of February 1, 2023.

"There are a few obstacles that occur in several locations of the handover points so that 35 percent of Biodiesel mixing cannot be carried out as a whole, this problem is that there are still stock FAMEs with B30 specifications and B30 mixtures at the Oil Fuel Terminal (TBBM), as well as facilities and infrastructure at the handover point. need adjustments," said Edi in Jakarta.

He explained, following up on the distribution of B35 which could not be carried out simultaneously on February 1, 2023, the Decree of the Director General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources Number 19.K/EK.05/DJE/2023 concerning Guidelines for the Implementation of the Implementation of Natural Fuel Mixing Types of Biodiesel into Diesel Oil Fuel Types of 35 percent (B35), where tolerance is given until July 31, 2023.

This tolerance is given for conditions if the BBM Business Entity tank still has B100 according to specifications for B30, then 30 percent (B30) mixing is still required. Also, if in the BU BBM tank there is B100 according to specifications for B35, but because it still requires adjustment of the sarpras, then 30 percent (B30) mixing can still be done. Tolerance also applies to conditions for mixing between B30 and B35 which cannot be avoided, so there is tolerance for checking the suitability of the mixing percentage with the mixed percentage tolerance value of +/- 10 percent of the percentage content of FAME (Biodiesel).

"Starting August 1, 2023, the BU BBM tank must be filled with B100 according to specifications for B35 and 35 percent mixing (B35) is carried out," explained Edi.

Meanwhile, the Region Manager Communication, Relations & CSR of Pertamina Patra Niaga, West Java Regional, Eko Kristiawan explained that Pertamina has prepared hoarding facilities, reception facilities, blending facilities and quality control. This B35 product has also paid attention to all aspects, such as vehicle power, engine, and fuel space. The launch of B35 products is also Pertamina's commitment to distributing environmentally friendly energy.

"The use of this product is expected to be an inclusive, clean, sustainable energy acceleration and encourage investment to achieve Net Zero Emission, as mandated by President Joko Widodo," said Eko.

For the West Java Regional area, there are 6 terminals that will distribute B35 products, namely Integrated Balongan Terminal, Tanjung Gerem Fuel Terminal, Cikampek Fuel Terminal, Bandung Terminal Group (Padalarang & Ujung Berung) and Tasikmalaya Fuel Terminal. The Pertamina terminal can carry out a consignment pattern for alternative-emergency patterns that distribute B30 / B35 products according to product needs at the end terminal. For Integrated Jakarta Terminal, the implementation of the first distribution of B35 is estimated to be on August 1, 2023.