The Ministry Of Finance Has Not Yet Reviewed The Impact Of The Implementation Of The B50 Prabowo-Gibran Program

EAST BELITUNG - The 50 or B50 biodiesel program will be accelerated in the Prabowo Sumbianto-Gibran Rakabuming Raka administration.

Initially, the program was targeted to start in 2029, but was accelerated to next year.

Responding to this plan, the Intermediate Policy Analyst of the State Revenue Policy Center (PKPN) of the Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemenkeu), Nursidik Istiawan admitted that he had not conducted a study regarding the impact of the implementation of the Prabowo-Gibran program.

Including, continued Nursidik, regarding the potential decline in exports of crude palm oil (CPO) and its decline.

"B50 impacts on exports, we haven't done any calculations that way," said Nursidik at the Palm Oil Contribution Press Tour for the State Budget and the Economy, written Friday, August 30.

However, Nursidik said that his party would immediately conduct a study on Prabowo-Gibran's plan.

This study will be conducted together with the state revenue team that has been formed.

"We are trying to re-examine with the team that has been formed, especially in the APBN policy team, we will jointly try to examine state revenues," he explained.

Implementation Of B50 Sedot Export Allocation

Meanwhile, Chairman of the Indonesian Palm Oil Entrepreneurs Association (Gapki) Eddy Martono said the implementation of B50 would suck up palm oil production allocated for export.

Based on Gapki data, domestic crude palm oil (CPO) production was recorded at 54.84 million tons. This production was absorbed for consumption of 24.34 million tons.

Consisting of 10.30 million tons of food, 2.27 million tons of oleochemic and 35 (B35) biodiesel 11.77 million tons. Meanwhile, the allocation of crude palm oil for exports is 30.50 million tons.

If the B40 program is run next year, domestic consumption will increase because there is an increase in absorption in biodiesel. Meanwhile, the allocation for exports is reduced.

Total consumption of crude palm oil to 26.57 million tons. In detail, absorption to food is 10.30 million tons, oleochemia is 2.27 million tons and biodiesel is 14.0 million tons. Meanwhile, the allocation of crude palm oil for exports is 28.27 million tons.

Likewise, if the B50 program is run next year, domestic consumption will increase because there is an increase in absorption in biodiesel. Meanwhile, the allocation for exports is reduced.

Total domestic consumption will increase to 30.07 million tons. In detail, absorption to food is 10.30 million tons, oleochemia is 2.27 million tons and biodiesel is 17.50 million tons. Meanwhile, the allocation of crude palm oil for export will be 24.77 million tons.

Dampak Penerapan B50, produksi untuk alokasi ekspor berkuran. Penerimaan PE dan BK berkurang. Ketersediaan anggaran untuk subsidi biodiesel berkurang," ujar Eddy.

Previously, President-elect Prabowo Subianto planned to implement the B50 program early next year.

According to him, if Indonesia could implement B50, it would reduce the burden of importing fuel oil (BBM) to US$20 billion per year.

"With B50, 50 percent of biodiesel is made of palm oil. Once we reach B50, God willing, by the end of this year, or early next year we will save 20 billion US dollars per year. We don't need to send this money abroad," Prabowo said as quoted by Chanel News Asia, Friday, August 30.