Economy & Industry Fuel & Emission

Production of Palm Oil-Based Biodiesel Continues


JAKARTA— The Oil Palm Plantation Fund Management Body (BPDP) gives positive response to Pertamina’s readiness in implementing Government’s “Mandatory B15 and B20” policy. The body says it will continue to spare USD 50 for every exported palm oil. The decision began in effect on 18 September 2015.

The “Mandatory B15 and B20” is a Government’s policy concerning biodiesel use for diesel engine-driven vehicles for transportation. Pertamina, as the fuel producer in Indonesia, is mandated to produce biodiesel fuel of mixture between diesel fuel and palm oil. The “B15” refers to diesel fuel with 15% palm oil that started to be implemented in September 2015. Meanwhile. The “B20” refers to the similar mixture using 20% palm oil that will be in effect in 2016. The mixture is chemically called fatty acid methyl ester (FAME).

BPDP Director Mr Bayu Krisnamurthi said the B15 and B20 is a point-of-no-return policy. “This isn’t about the oil palm, but instead we’re determined to use sustainable and environmentally friendly fuel,” he said on 8 September 2015.

He added, the use of palm oil-based biodiesel helps reduce emission by 17% to 50%. Besides, this is also as an effort to participate in establishing energy security.

Meanwhile, Director General of New, and Renewable Energy, and Energy Conservation, Ministry of Energy and Mineral Resources of the Republic of Indonesia Mr Rida Mulyana said that the “Mandatory B15” in 2015 and “Mandatory B20” policy in 2016 has several benefits. “No one is disadvantaged out of this,” he said.