Biodiesel Uptake Realization Until July 2022 Reaches 4.9 Million KL

Illustration (Photo: Antara Doc)

JAKARTA - Director of Bioenergy at the Ministry of Energy and Mineral Resources (ESDM), Edi Wibowo, revealed that the realization of biodiesel absorption until early July 2022 had reached 4.9 million kiloliters (KL).

Edi added that this number had reached 49 percent of the target set at the beginning of the year of 10.15 million KL.

"Until early July 2022, our absorption has reached 4.9 million KL, almost 5 million KL. So with the initial allocation of 10.15 million KL, almost 49 percent has been absorbed, so it's still on track," said Edi at the Energy Corner, Monday, July 11.

With the planned implementation of the 35 percent Biodiesel program, at the end of July, Edi estimates that the realization of absorption will increase to 10.80 million KL by the end of 2022.

"Our target at the end of the year with B30 is still around 10.1 million but later it can be realized. But with the presence of B35, it may increase from 10.15 to 10.8 million KL later," added Edi.

Regarding the readiness of raw materials, Edi said that the raw material for biodiesel is very sufficient, namely 17.14 million KL.

He also hopes that this program will not only reduce the use of diesel fuel but will also help increase the price of Fresh Fruit Bunches (FFB) from oil palm farmers, which is currently at the level of IDR 1,000 per kilogram (kg).

"We hope that absorption from the CPO market will increase so that the price of FFB at farmers is expected to increase," said Edi.

It is known that the government plans to implement the use of biodiesel with a blend of 30 percent palm oil (B30) into a mixture of 35 percent palm oil (B35) by the end of July.

Edi revealed that his party was conducting a series of preparations to finalize the specifications for the B35 and B40 trials to pursue the trial plan.

"From all raw materials, it is sufficient. The biodiesel industry itself has reached 17.14 million kiloliters (KL). It is sufficient and hopefully it can work," he said.

Meanwhile, in terms of regulation, Edi explained, there were no significant changes because biodiesel would still use existing regulations.

However, his party is also working on regulations at the ministerial decree level which will regulate the percentage of biodiesel mix flexibly.