Indonesia's Biodiesel Exports Decreased By 70 Percent, Director General Of EBTKE Explained The Cause

Biodiesel (Photo: Unsplash)

JAKARTA - Acting Director General of New Renewable Energy and Energy Conservation (EBTKE) Jisman Hutajulu revealed that Indonesia's biodiesel exports to the European Union (EU) decreased by 70 percent.

Jisman said this decline was due to deforestation-free egulations by the European Union or European Union Deforestation-free Regulation (EUDR).

Quoted from the Ministry of Foreign Affairs website, EUDR is a draft regulation owned by the European Union which aims to impose a due diligence obligation on 7 agricultural and forestry commodities, including palm oil. This obligation is to prove that goods entering the European Union market are goods that are free from deforestation. This regulation is expected to be adopted in May/June 2023.

"These various challenges have reduced our biodiesel exports by 70 percent," said Jisman in his remarks at the Indonesian Biodiesel Challenge Seminar by Aprobi, Tuesday, February 27.

Jisman added that the challenges faced by biodiesel did not only come from within the country but also from abroad.

One of the challenges faced from the global market is discrimination from the European Union against biodiesel products from the Republic of Indonesia which is carried out through negative chaotic renewable energy (RED).

"The two allegations of anti-dumping are the imposition of additional import duties on bioenergy products, especially palm oil," continued Jisman.

Furthermore, Jisman emphasized that to overcome these challenges, an integrated approach is needed that involves various parties including industry, academics and non-governmental organizations.

At the same time, continued Jisman, Indonesia also needs to explore opportunities and potential that have not been fully exploited in the bioenergy industry, technological innovation and market development.

"Strategic partnerships, massive investments in the context of conducive policies are several areas where we can see great potential for the growth and development of the bioenergy industry in the future," concluded Jisman.