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Three Palm Oil Corporations Involved in CPO Corruption Case Also Produce Biodiesel

Reza Pahlevi 20/04/2022 15:00 WIB

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Citing data from the Indonesian Biofuel Producers Association (Aprobi), PT Musim Mas, PT Wilmar Nabati Indonesia, and Permata Hijau Group have a combined annual biodiesel production of 3.19 million to

Biodiesel Production by Three Palm Oil Corporations Implicated in the CPO Corruption Case (2021)

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Three Palm Oil Corporations Involved in CPO Corruption Case Also Produce Biodiesel

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Biodiesel Production by Three Palm Oil Corporations Implicated in the CPO Corruption Case (2021)

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In addition to producing crude palm oil (CPO), three palm oil corporations implicated in the alleged CPO export permit corruption case also produce biodiesel.

These three corporations are PT Musim Mas, PT Wilmar Nabati Indonesia, and Permata Hijau Group.

Citing data from the Indonesian Biofuel Producers Association (Aprobi), these three companies have a combined biodiesel production capacity of 3.19 million tons per year.

Wilmar Nabati Indonesia has the largest biodiesel production capacity among the three companies, namely 1.45 million tons per year.

Musim Mas has the second largest capacity with a total of 1.18 million tons per year. This consists of production capacity in Batam of 780,000 tons and in Medan of 400,000 tons.

Lastly, Permata Hijau Group has a total production capacity of 563,000 tons per year. This comprises production from PT Permata Hijau Palm Oleo of 363,000 tons per year and PT Pelita Agung Agrindustri of 200,000 tons per year.

According to the Palm Oil Plantation Fund Management Agency (BPDPKS), each company that produces biodiesel also receives incentives.

"Incentives are given to companies because they produce biodiesel. All companies that produce biodiesel and meet the administrative requirements and whose products meet the quality determined by the Ministry of Energy and Mineral Resources can become biodiesel distributors," explained BPDPKS on its official website.

"The amount of the incentive is determined by the volume of biodiesel distributed, and the difference between the HIP (market index price) of diesel fuel and the applicable HIP biodiesel during the distribution period," BPDPKS clarified.

For example, the current subsidized diesel price is Rp5,150 per liter, while the HIP biodiesel was Rp15,559 per liter in April 2022. Therefore, the biodiesel incentive will be used to cover the price difference of Rp10,409 per liter.

Throughout 2021, BPDPKS provided incentives totaling Rp51.86 trillion. When accumulated over the period 2015-2021, the total amount of these incentives reached Rp110.05 trillion.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Three Palm Oil Corporations Involved in CPO Corruption Case Also Produce Biodiesel

Three Palm Oil Corporations Involved in CPO Corruption Case Also Produce Biodiesel

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Three Palm Oil Corporations Involved in CPO Corruption Case Also Produce Biodiesel

Three Palm Oil Corporations Involved in CPO Corruption Case Also Produce Biodiesel

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