State-owned electricity company PLN will purchase 2.2 million kiloliters of 20 percent blended biodiesel ( B20 ) for its diesel-fueled power plants as the government will make it mandatory to use of the fuel on Sept. 1.
“This year, we are ready to absorb 2.2 million B20,” said PLN Eastern Java, Bali and Nusa Tenggara business director Djoko Rahardjo Abu Manan in Jakarta on Thursday as reported by kompas.com.
He said PLN would buy the B20 fuel from three companies — state-owned gas and oil holding company Pertamina, AKR Corporindo and PT Kutilang Paksi Mas (KPM), but currently, only Pertamina was ready to supply the fuel.
Under Presidential Regulation (Perpres) No. 66/2018 on B20 mandatory usage issued earlier this month, all fuel distributors are required to sell the fuel starting next month.
Meanwhile, Pertamina acting president director Nicke Widyawati said separately that her company would be ready to sell B20 fuel starting on Sept. 1.
Previously, Coordinating Economic Minister Darmin Nasution said that by expanding the use of B20, the government hoped to decrease fuel imports by 3.5 million kl to 4.5 million kl per year, which was important to cut the current-account deficit. “But it will be difficult to achieve that target within the next six months,” Darmin said.
According to data from the Indonesian Biofuel Producers Association (Aprobi), biodiesel producers had produced 3.42 million kl of B20 fuel up to June. Domestic consumption reached 2.57 million kl, while 178,349 kl was for export. (bbn)