Economy Policy

Producers call for clear B20 production allocation

The Indonesian Biofuel Producers Association (Aprobi) has said it welcomes Presidential Regulation (Perpres) No. 66/2018 mandating the use of 20 percent blended biodiesel ( B20 ), but has called for clear specifications on the production allocation for B20 fuel.

Coordinating Economic Minister Darmin Nasution had said earlier that President Joko “Jokowi” had signed the Perpres, which will come into effect on Sept. 1.

Aprobi chairman Master Parulian Tumanggor said in Jakarta on Monday that a technical guide on implementing the regulation was needed so that energy companies could prepare their biodiesel factories for production.

“We will produce about 2 million kiloliters (kl) of B20 fuel from Sept. 1 to Dec. 31,” Master said as quoted on kontan.co.id, assuring that biodiesel producers could meet the market demand once the B20 regulation had been enacted.

Master said the annual capacity of all biodiesel producers was 12 million kl. “What we urgently need is the [production] allocation for B20 fuel from the Energy and Mineral Resources Ministry,” he said.

B20 has been available in the country since 2016, but biodiesel production has been limited to the Solar diesel brand of state-owned energy company Pertamina under the public service obligation (PSO) scheme.

After Sept. 1, B20 is available for use as a non-PSO fuel, including use for transportation like buses, trains and ships, as well as heavy equipment and military vehicles.

Kontan.co.id

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