Bahlil Claims B50 Can Hold Rp170 Trillion in Foreign Exchange

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Teddy VOI)

KARAWANG - The government hopes that B50 biodiesel will not only reduce solar imports, but also expand the market for crude palm oil or CPO in the country.

Energy and Mineral Resources Minister Bahlil Lahadalia said the need for CPO for the biodiesel program increased after B50 was implemented. According to Bahlil, CPO needs increased from 15.2 million tons to 16.3 million to 17 million tons.

Bahlil said this increase could provide market certainty for palm oil farmers. Moreover, if the CPO price in the foreign market is low or the demand from other countries is weakening.

"If the CPO price is outside the low and other countries do not want it, then yes, we will set aside a portion of it to build B50 downstream so that the farmers' prices rise, the industry rises, the country is prosperous," said Bahlil in Karawang, West Java, Thursday, July 9.

Bahlil conveyed this at the launch of Biodiesel B50 by President Prabowo Subianto. The event was also attended by palm oil farmers, entrepreneurs, B50 users, ministers, and representatives of a number of sectors.

In terms of foreign exchange, Bahlil said the previous B40 program was able to save around Rp133 trillion. With B50, the value increased to around Rp170 trillion.

"With the implementation of B50, it turns out to be Rp170 trillion. So from B40 to B50 we can add to our foreign exchange reserves of Rp170 trillion," said Bahlil.

He also said that the added value of the CPO industry also increased. The figure increased from Rp20.92 trillion to Rp23.49 trillion.

In terms of labor, Bahlil said that the absorption of workers rose from around 1.8 million people in the B40 program to 2.1 million people with B50.

The government also links B50 to the target of reducing greenhouse gas emissions. According to Bahlil, emission reductions increased from 39.66 million tons of CO2 to around 44.46 million tons of CO2.

Bahlil said, B50 users from a number of sectors also attended online. They come from the mining sector in Kutai, agriculture in Semarang, railways at Lempuyangan Yogyakarta Station, maritime transport through the Geomarin ESDM Ship in Cirebon, and the industrial sector in Surabaya through Pertamina Patra Niaga.

In front of President Prabowo, Bahlil also mentioned business actors who were initially reluctant to use B50 for price reasons. He said the government had spoken to entrepreneurs in the mining and industrial sectors to use domestic products.

"I have said, if you do not use B50, I will review the RKAB," said Bahlil.

Bahlil also mentioned that there were plans to use part of the BPDPKS funds to reduce the price of B50 for certain fishermen. The scheme was discussed because the BPDPKS funds in the last three months were surplus.

He then clarified that the direction discussed targeted fishermen above 30 tons.

"Without the state budget, the Coordinating Minister said that he would use part of the BPDPKS fund to lower the price of B50 at the level of farmers and fishermen. Mr. Coordinating Minister, farmers are the same as fishermen or fishermen? Oh, fishermen who are above 30 tons," said Bahlil.