Five Principles in Implementing the Obligation of B20

Five Principles in Implementing the Obligation of B20

InfoSAWIT, JAKARTA - On 1 September 2018, the government launched the expansion of biodiesel mandatory program (B20). The diesel should be mixed 20% with palm oil biodiesel both for public service obligation (PSO) and non-PSO. It is hoped that there would be no more diesel (B0) in the markets.

The expansion of B20 program is designed to decrease the fuel import and to save the exchange. In the end, the government wants to reduce the trade balance deficit. To monitor the emplementation of B20 program, the government is committed to discuss it with every stakeholder once a week.

“One goal of the policy to press the trade balance deficit is B20. So we would always renew and update (every progress) in every week, every Thursday. We would make clear template then we could learn it with the team,” Coordinator Minister in Economy, Darmin Nasution said when leading the Coordination Meeting about the Supervision of B20 Implementation Expansion, Thursday (13/9) in Jakarta.

In mixing palm oil biodiesel 20% to diesel, the government implements five (5) principles that every stakeholder should do, they are, every liter of diesel to be sold should be mixed to palm oil biodiesel.

The second, if anyone forbids this, there would be administration sanction to give, both fine and the revocation of the business license. The third, there would be incentive given by Palm oil Plantation Fund Management Agency (PFMA). The fourth, the government would guarantee the quality of Fatty Acid Methyl Esters(FAME) through the Indonesian National Standard. The fifth, if the people complain, they could tell their complaint through customer care.

In his description in the coordination meeting in the office of Coordinator Ministry in Economy, General Director of Oil and Gas, Ministry of Energy and Mineral Resources,  Djoko Siswanto reported that some BU BBM (Badan Usaha Bahan Bakar Minyak) have run B20 partially or some other have not done it based on the regulation. He also reported that some of BU BBMandBU BBN (Badan Usaha Bahan Bakar Nabati) were fined.

The representative of General Directorate of New and Renewable Energy, and Energy Conservation, Ministry of Energy and Mineral Resource also told about BU BBNwhich has or has not fulfilled the obligation to supplyFAME based on the contract and issue when implementing the program.

The implementation of obligation in running B20 program, as a matter of fact, has some issue too. That is why, Director of PFMA, Dono Boestami told the issue aboutdebottleneckingand customer careto solve every technical and non-technical issue about the program.

As the monitoring and evaluation in B20 program, the representative of PT Pertamina also told the issue when mixing it, the needs of infrastructure, the study, and lists of Fuel Terminals that still sell Bo.

In the meeting, Miniter Darmin and the representatives of ministries/institutions also listened to the explanation from BU BBM, BU BBN, PLN,andFreeport. “Every institution should send the written report so that the team could clearly monitor it. This is a gambling for our country. Do not mass it,” Darmin said in the official statement to InfoSAWIT. (T2)


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