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Biodiesel production throughout 2018 reached 6.01 million kiloliters, exceeding the target set at 5.70 million kiloliters.

Production includes the interests of exports or domestic use for the B20 program, as well as domestic interests outside of B20.

Director of Bioenergy Directorate General of Renewable Energy and Energy Conservation Anriah Feby Misna said, of that amount, the utilization of domestic biodiesel in 2018 reached 4.02 million kiloliters which included the use of a 20% biodiesel (B20) mix program and outside the program.

This achievement has an impact on the country’s foreign exchange savings of around US $ 2.01 billion, equivalent to Rp28.42 trillion. However, Feby continued, related to the implementation of B20 by a biofuel business entity (BUBBN), the realization is still in the range of 3.20 million kiloliters.

“So, another addition to the B20, there are those (producers) who use it for their own industries,” He said on Friday (4/1).

The ESDM data states that biodiesel production sequentially from 2014 to 2017 is 3.32 million kl, 1.62 million kl, 3.65 million kl, and 3.41 million kl.

This increase in absorption is due to the policy of encouraging the use of B20 in various sectors since September 1, 2018, and this has succeeded in reducing the fuel import burden.

Based on ESDM Minister’s Regulation Number 41 of 2018, the BBM business entity (BUBBM) that does not fulfill the requirements, namely not mixing the fuel, will be subject to administrative sanctions in the form of a fine of IDR. 6,000 per liter of biodiesel volume which must be mixed with the volume of Solar in the current month, and in the form revocation of business license.

To minimize the delay possibility in the supply of fatty acid methyl esters (FAME) from BUBBN to BUBBM in meeting the next year’s needs, the Indonesian Biofuel Producers Association (Aprobi) asks BUBBM to be able to send purchase orders related to how much FAME must be supplied in advance or at the latest 14 days before the start of the B20 program in January 2019.

Aprobi Chairman Paulus Tjakrawan admitted that all BUBBM had sent the purchase order of B20 raw material needs for the B20 implementation which would begin in January 2019.

Source: Bisnis Indonesia