Jakarta – Indonesia is taking a step further in its green energy transition by distributing thousands of kilolitres (kl) of B40 biodiesel from two major refineries: the Plaju refinery in South Sumatra and the Kasim refinery in Southwest Papua. This step marks the start of the implementation of the mandatory biofuel program (BBN) B40 on January 1, 2025, following the Decree of the Minister of Energy and Mineral Resources (MEMR) Number 341.K/EK.01/MEM.E/2024.
In this first distribution, 5,000 kl of B40 was delivered from the Plaju refinery, while the Kasim refinery supplied 4,600 kl. Taufik Aditiyawarman, President Director of Kilang Pertamina Internasional (KPI), said this is a significant step in supporting the energy transition and commitment to sustainability.
“The production and distribution of B40 biodiesel is about meeting national energy needs and our contribution to achieving net-zero emissions by 2060. This is our real commitment to sustainability, green economy, and a cleaner future,” Taufik said in an official statement on Wednesday, January 15.
The Biodiesel program in Indonesia started with implementing B20 in 2019, then increased to B30 in the same year. Subsequently, B35 was launched in 2023, and it has reached B40. B40 biodiesel blends 40% palm oil-based fatty acid methyl esters (FAME) and 60% diesel fuel oil.
The Plaju and Kasim refineries are the main production centres for this innovative fuel. With production capacities of 119,240 kl per month in Plaju and 15,898 kl per month in Kasim, respectively, both facilities have been prepared with adequate supporting facilities and infrastructure.
“This results from the infrastructure and technology readiness that we have developed over the years. The B40 mandate is clear evidence that Indonesia can integrate biofuels into the national energy system,” Taufik added.
Environmental impact and sustainability
Implementing B40 is part of Indonesia’s efforts to reduce dependence on fossil fuels while reducing carbon emissions. Taufik emphasised that biodiesel production supports the Sustainable Development Goals (SDGs), especially in ensuring access to affordable clean energy for the community.
“Apart from being environmentally friendly, B40 also offers an economic solution by utilising domestic palm oil while creating jobs in the renewable energy sector,” he explained.
Despite these achievements, Indonesia still faces challenges in ensuring the equitable distribution of B40 throughout the region and mitigating negative environmental impacts, such as the potential for increased deforestation due to palm oil expansion.
“This is an important first step, but there is still a long way to go. We need to ensure that biofuel production does not compromise the ecosystem and remains aligned with sustainability principles,” Taufik added. (Hartatik)