Jakarta – This month, diesel fuel mixed with 35 percent palm oil is officially available to the public. Coordinating Minister for the Economy Airlangga Hartarto said the move was a real manifestation of the government’s commitment to accelerating an inclusive and sustainable energy transition, starting February the 1st, 2023, mandatory biodiesel blend level will be increased further to 35% (B35) from previously 30%.
“B35 will soon be included in all of our national transportation that uses biodiesel fuel,” said Hartarto when delivering a keynote speech at the ‘Energy Corner Special Talk Show: Mandatory Implementation of Biodiesel B35’. Furthermore, he said, over the past seven years, the blending level of biodiesel has continued to increase from 15% (B15) in 2015, 20% (B20) in 2016, and 30% (B30) in 2020.
The B35 policy is expected to absorb 13.15 million kiloliters of biodiesel for the domestic industry. Policy implementation is also expected to save import spending of USD 10.75 billion and increase the added value of the downstream industry by IDR 16.76 trillion. The B35 policy is also projected to reduce greenhouse gas emissions by 34.9 million tonnes of CO2.
“The government is encouraging state-owned enterprises such as Pertamina and PLN to use more sustainable products and is pushing this to become a Key Performance Indicator for Directors working in the energy sector,” said Hartarto.
Reflecting on the implementation of B30 in 2022, he continued, more than 10.5 million kiloliters of biodiesel had been distributed. This has been able to save around USD 8.34 billion of foreign exchange. The B30 program has also absorbed a workforce of more than 1.3 million people and reduced greenhouse gas emissions of around 27.8 million tons of CO2.
The move is based on Decree of the Minister of Energy and Mineral Resources (ESDM) Number 295.K/EK.01/MEM.E/2022 concerning the Phasing of the Utilisation of Biodiesel Fuel as a Mixture of Diesel Fuel Oil in the Financing Framework by the Oil Palm Plantation Fund Management Agency and the Decree of the Minister of Energy and Mineral Resources No. 205.K/EK.05/DJE/2022 concerning Determination of Oil Fuel Business Entities and Biodiesel Type Business Entities and Allocation of Biodiesel Type of Biofuel Volume for Mixing Diesel Fuel Oil for the period January to December 2023. (Hartatik)