Increasing By 19 Percent, The Ministry Of Energy And Mineral Resources Has Determined The Allocation Of Biodiesel In 2023 Of 13.15 Million KL

JAKARTA - The government through the Ministry of Energy and Mineral Resources (ESDM) revealed that it will support the president's directives in increasing the provision of clean energy in a sustainable manner through increasing biodiesel mixing into Solar Oil Fuel to 35 percent or B35.

Referring to the projected distribution of Biosolar in 2022 of 36,475,050 kiloliters (KL), as well as the assumption of demand growth of 3 percent, it is estimated that Biosolar sales in 2023 will reach 37,567,411 million kL.

"The estimated need for Biodiesel to support the implementation of B35 is 13,148,594 kL, or an increase of about 19 percent compared to the 2022 allocation of 11,025,604 KL," wrote the Head of the Communication Bureau, Public Information Service, and Cooperation of the Ministry of Energy and Mineral Resources, Agung Pribadi in an official statement, Friday, December 16.

In this regard, he continued, the Ministry of Energy and Mineral Resources determined that the allocation of Biodiesel in 2023 has an installed capacity of 16.6 million KL.

This is stated in the Decree of the Minister of Energy and Mineral Resources Number 205.K/EK.05/DJE/2022 dated December 15, 2022.

"The distribution of the Biodiesel program in 2023 is supported by 21 business entities for the Nabati Fuel/Bu BBN," he continued.

He continued, the increase in biodiesel mixing to B35 has gone through a series of tests, both in the laboratory, as well as through the implementation of the B40 Road Test.

"This road test activity has been going on from July 2022 to the end of December 2022, where in general it provides an overview of good performance," he added.

In addition, the implementation of B35 has also taken into account the readiness of BU BBN and BU for fuel oil/BBM, both in terms of supply readiness, distribution, including supporting infrastructure.

In line with the increase in the percentage of the Biodiesel mixture to B35, the Ministry of Energy and Mineral Resources has improved the quality of Biodiesel through the Decree of the Director General of EBTKE Number: 195.K/EK.05/DJE/2022.

This is done to give consumers confidence that this increase in percentage does not interfere with the performance of diesel engines.

"The government hopes that the distribution of Biodiesel in 2023 can be carried out more efficiently and minimize delays or failed supply (B0)," he said.

Some of the efforts that have been made to overcome this include making efforts so that at every handover point at least 2 BU BBNs supply, BU BBN and BU BBM selection based on route optimization so that transportation costs become efficient with the help of the GAMS application.

Not only that, but a formula for the Biodiesel Market Index (HIP) has also been prepared which further reflects justice and real conditions in the field and makes an online BBN distribution monitoring application to facilitate mitigation in the event of a potential B0 at the handover point.