Minister launches B15 program
Monday, March 23 2015 - 10:19 AM WIB
Until the launching of the program, diesel oil sold in the country is required to contain only 10 percent biodiesel. Under the Ministry of Energy and Mineral Resources Regulation No. 20/2014, diesel oil is required to contain 10 percent biodiesel (B10) and the content of biodiesel should be raised to 20 percent (B20) in 2016 and 30 percent (B30) in 2020. The government has made B10 mandatory since Sept. 1, 2013.
President Joko Widodo recently announced a package of new economic policy, aimed to strengthen the value of the local currency, which includes the obligation to sell B15 diesel oil.
The consumption of biodiesel has been increasing since the government pushed for the consumption of the fuel. The consumption reached 1.84 million kiloliters in 2014, up by 75 percent from the previous year. The 1.84 million kl volume includes 1.16 million kl or 62.7 percent of the total, which was blended with particular oil fuel, the ministry said in a statement on Monday.
As a result of the B15 policy, the government expects the domestic consumption of biodiesel will increase to 5.3 million kl or equal with 4.8 million tons of CPO. This will allow the country to save US$2.45 billion in foreign exchange reserve.
Biodiesel in Indonesia is mostly produced from CPO, while the country?s is the largest CPO producer in the world. Last year, Indonesia produced 31 tons of CPO. This year, the output is expected to increase to 33 million tons.
Editing by Johannes Simbolon