All mining firms expected to start using biofuel next year

By Bambang Atmaja

The government expects all mining companies in Indonesia to start using biofuel in their operations next year in a bid to help reduce petroleum import.

Coordinating Minister for the Economy Hatta Rajasa said that preparations are underway to help ensure that the goal can be realized.

?We expect the use of biodiesel can be accelerated significantly in the second half of this year,? he told Petromindo.com on Wednesday.

Under the existing regulation issued in September of last year, the transportation and industrial sectors are required to use at least 10 percent of biofuel in their fuel consumption.

Meanwhile, Minister of Energy and Mineral Resources Jero Wacik said on Wednesday that his office has already held talks with producers of mining heavy equipment to adjust their machinery so that fuel for the equipment can be mixed with biodiesel.

The mandatory use of biofuel introduced last year has help increased consumption of biodiesel in 2013 to increase by 24 percent to 2.8 million kilo liters from the previous year?s volume, according to Maritje Hutapea, Director of Energy Conservation.

Maritje said that the mandatory use of biodiesel by the transportation, industrial and power plant sectors this year is expected to surge to 4 million kilo liters, which will result in foreign exchange savings of up to US$3.1 billion as the country reduces diesel import.

The biodiesel consumption in the future is projected to further increase as the government plans to increase the mandatory use of the fuel from the current 10 percent to 20 percent in 2016, Jero said.

Editing by Reiner Simanjuntak