PALMOILMAGAZINE, JAKARTA – The Indonesian government continues to advance its efforts to achieve national energy sovereignty by leveraging palm oil as a biofuel source. Deputy II for Food and Agribusiness Coordination at the Coordinating Ministry, Dida Gardera, emphasized that this initiative not only supports energy independence but also addresses key economic and environmental challenges. These include stabilizing crude palm oil (CPO) prices, reducing greenhouse gas (GHG) emissions, and lowering the trade deficit by decreasing fuel imports.
Since 2014, the palm oil-based biodiesel policy has seen substantial progress, driven by the establishment of the Palm Oil Plantation Fund Management Agency (BPDPKS). The agency plays a critical role in accelerating policy implementation.
In 2014, the government introduced the mandatory B15 policy, requiring a 15% biodiesel blend in fuel, with a distribution volume of 915,000 kiloliters. This mandate has gradually expanded, culminating in the B35 policy launched in 2023. By 2024, the B35 mandate targets distributing 13.4 million kiloliters. According to data, the policy has saved approximately Rp139.9 trillion in foreign exchange and reduced GHG emissions by 32.6 million tons of CO2.
“In an effort to realize Indonesia’s commitment to achieve the Net Zero Emission target by 2060, the government plans to continue this policy with the mandatory implementation of B40 in 2025. With the target distribution volume reaching 16.08 million KL in 2025, it is estimated that the funds needed to support this policy will reach Rp37.5 trillion, which will be channeled through BPDPKS,” said Dida when giving a speech at the RSI Seminar, attended by Palmoilmagazine.com, Monday (18/11/2024) in Jakarta.
Dida said, to ensure the readiness of the implementation of the B40 policy, the government has conducted a number of evaluations, including an examination of the installed capacity and production capabilities of the Biofuel Business Entity (BU BBN), infrastructure readiness such as transportation modes, ships, and Fuel Oil Terminal (TBBM) facilities. Evaluation is also carried out regarding the engineering and results of the B40 road test with a distance of between 40,000 and 50,000 km.
This step is expected to accelerate Indonesia’s transition to the use of renewable energy that is more environmentally friendly, and support national energy sovereignty in the future. (P2)
