Domestic Utilization Achieves 12.2 Million Kiloliters In 2023, Government Encourages Biodiesel Mandatery Program

Illustration. (Photo: Doc. Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the government will continue to encourage the mandatory biodiesel program because programs have been tested for fossil fuels with a percentage of 40 percent or B40, after previously launching the B35 biodiesel mandatory program.

"The government continues to encourage the mandatory biodiesel program which has now been piloted for B40," said Airlangga at the National Coordination Meeting on the National Action Plan for Sustainable Palm Oil Plantation (RAN-KSB), Thursday, March 28, 2024.

Airlangga conveyed that throughout 2023 the realization of the use of biodiesel for the domestic market reached 12.2 million kiloliters.

"The realization of domestic biodiesel last year was 12.2 million kiloliters and this greatly affects the absorption of domestic CPOs," he said.

Airlangga said the program is expected to have a big economic effect on Indonesia. Moreover, there will be an increase in the added value of Crude Palm Oil (CPO) in the country.

Airlangga said the government had also issued various policies, including Indonesia's sustainable palm oil or ISPO certification and the People's Palm Oil Rejuvenation (PSR) program.

"The president's regulation on ISPO aims to accelerate sustainable certification for large-scale businesses and oil palm plantations. The revised Presidential Regulation and ISPO also includes an accuracy from the supply chain of palm oil or traceability, by strengthening the concept of downstreaming," he said.

According to Airlangga, this is important because it is a response from the government to the European Union Deforestation Regulation (EUDR) policy decided by the European Union (EU).

Airlangga conveyed that the people's palm oil rejuvenation (PSR) program only reached around 50 thousand hectares (Ha) per year since 2017. This figure is below the target set by President Joko Widodo (Jokowi) of 180 thousand Ha per year.