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Indonesia saves $4.54 billion in foreign exchange by using biofuel

Antara News - December 24, 2021

Sugiharto Purnama, Uyu Liman, Jakarta – The utilization of 30 percent biodiesel (B30) in 2021 helped Indonesia save US$4.54 billion in foreign exchange or equivalent to Rp64.6 trillion, the Energy and Mineral Resources Ministry has informed.

Director of downstream oil and gas business development at the ministry, Soerjaningsih, said oil fuel business entities (BU BBM) absorbed 97.89 percent of the allocated 9.21 million kiloliters of B30.

"In addition, the compliance of BU BBM is getting better as they have distributed B30 by 94.17 percent of the total distribution of diesel fuel," she informed in a written statement here on Thursday.

It is hoped that the utilization of B30 in 2022 will run smoothly and its percentage utilization and distribution will increase, she added.

The government has determined that 18 BU BBM will be allocated 10.151 million kiloliters of B30 in 2022, she noted.

Meanwhile, assistant deputy for oil and gas, mining, and petrochemicals at the Coordinating Ministry for Economic Affairs, Andi Novianto, said that President Joko Widodo is committed to using environmentally friendly energy.

In addition to B20 and B30, which have been introduced, the government is developing B100 for a new era of green technology and clean energy, especially in the transportation and industrial sectors, he informed.

Strong collaboration between the government, business entities, and research institutions must continue to be carried out to resolve the challenges to the mandatory use of biofuels in 2022, he said.

Director of fund distribution at the Palm Oil Plantation Fund Management Agency, (BPDPKS) Edi Wibowo, lauded the implementation of B30, which is a mixture of 30 percent palm oil and 70 percent diesel.

He noted that the funds disbursed for palm oil plantation in 2021 reached Rp51.86 trillion, with volume pegged at 9.7 million kiloliters – an increase compared to 2020, when the funds were recorded at Rp28 trillion.

According to the agency, in 2015-2021, at least Rp110 trillion was spent on 29.14 million kiloliters of biodiesel.

The mandatory use of B30 is one of the government's attempts to increase the utilization of renewable energy and to reduce the international trade balance deficit, it added.

Source: https://en.antaranews.com/news/206185/indonesia-saves-454-billion-in-foreign-exchange-by-using-biofue