Biodiesel Saves US$4.54 Billion In State Foreign Exchange, PASPI: Enough Development Opportunity Because It Has Palm Oil Supply

Illustration. (Photo: Doc. Antara)

JAKARTA - The implementation of biodiesel (B30), which later expanded to B35, further shows the government's efforts to reduce dependence on imports of fuel oil (BBM). Moreover, Indonesia is considered to have an adequate supply of palm oil or Fatty Acid Methyl Ester (FAME).

Executive Director of the Palm Oil Agribusiness Strategic Institute (PASPI) Tungkot Sipayung said, apart from reducing dependence on fossil fuels, the use of B35 biodiesel is also cheaper than importing diesel from abroad.

"Currently, the import price of our diesel last month was US$1.3 per liter or almost Rp. 21,000. Meanwhile, the domestic biodiesel price announced last month was around Rp. 13,000. So imported diesel is much more expensive than domestic biodiesel," he said. in Market Review, Tuesday 12 July.

Based on data from the Ministry of Energy and Mineral Resources (ESDM), the implementation of the mandatory program of blending biodiesel type biodiesel into diesel oil by 30 percent (B30) throughout 2021 has the potential to save the country's foreign exchange of up to 4.54 billion US dollars in 2021.

According to him, Indonesia is considered to have a great opportunity in the development of bioenergy, especially biodiesel. This condition is considering the distribution of palm oil supply as biodiesel raw material.

Besides being cheaper, Tungkot said, the use of biodiesel can also reduce imports of diesel so that it can save foreign exchange.

"For the record, 100 percent biodiesel or B100 is now very expensive at over 2 US dollars. So it is much more profitable to use domestic biodiesel than we import diesel at this time because the price is very expensive," concluded Tungkot.