Government to push for biofuel use at airlines

The Ministry of Energy and Mineral Resources (MEMR) and the Ministry of Transportation signed on Friday a Memorandum of Understanding (MOU) to push the use of biofuel at airlines.

The MoU was signed by Director General of New and Renewable Energy and Energy Conservation Rida Mulyana and Director General of Air Transportation Herry Bakti in a ceremony presided over by Minister of Energy and Mineral Resources Jero Wacik and Minister of Transportation Evert Erenst Mangindaan.

Present at the ceremony were President Director of sate owned oil and gas firm PT Pertamina Karen Agustiawan, President Director of state owned airline PT Garuda Indonesia Emiryah Satar and officials from MEMR, the Ministry of Transportation, the Ministry of Environment, the Ministry of Finance, the Ministry of Agriculture, the Technology Application and Assessment Agency (BPPT), the Indonesian National Air Carriers Association (INACA), the Indonesian Biofuel Producer Association (APROBI), airport operators and other local airlines.

Under the MOU, both ministries will coordinate with related governmental agencies on studies, development, trials of biofuel for airlines as well as the preparation of certification, regulations, socialization and supervision of a sustainable use of biofuel for air transportations and renewable energy at airports.

The MEMR said in a statement the use of new and renewable energy in the country is still low, accounting a mere 5 percent in the national energy mix, despite the fact that Indonesia has the world?s second largest biofuel potentials after Brazil. The use of biofuel will result in the reduction of the use of fossil fuel and thus will strengthen the national energy resilience and reduce greenhouse gas emissions.

The ministry said Pertamina?s demand for aviation turbine fuel or jet fuel is projected to reach 4.8 million kiloliters in 2016 and 5.8 million kiloliters in 2020. On the assumption of the jet fuel will be blended with biofuel by 2 percent, Pertamina will need 95,000 kiloliters of biofuel in 2016. The demand will increase to 175,000 kiloliters in 2017 on the assumption of 3 percent biofuel.

?Indonesia has the potential to become a hub for international airlines if it can utilize its resources to provide jet biofuel not only for domestic but also international airlines,? the ministry said.

Editing by Johannes Simbolon