Domestic Biodiesel Distribution Increased by 39% until February 2022: Here are the Drivers

The high demand for subsidized solar fuel also led to a surge in domestic biodiesel distribution during the first two months of 2022. Citing data from the Indonesian Biofuel Producers Association (Aprobi), domestic distribution increased by 39% to 1.66 million kiloliters (kl) compared to the same period last year.

Aprobi recorded domestic biodiesel distribution of 841,000 kl in January 2022. This figure is higher than the 515,000 kl distributed in January 2021.

Furthermore, domestic biodiesel distribution reached 816,000 kl in February 2022, a 681,000 kl increase compared to the same period the previous year.

For information, subsidized solar fuel contains 30% biodiesel (B30). This explains the increase in domestic distribution, which is in line with the disbursement of subsidized solar fuel exceeding its quota during the same period.

Citing Pertamina's data, the realization of subsidized solar fuel disbursement reached 2.5 million kl by February 2022. This amount is 10% higher than the allocated quota of 2.27 million kl.

Pertamina suspects leakage of subsidized solar fuel to large industrial sectors that are not the target of the subsidy. This is evidenced by the composition of subsidized solar fuel sales, which account for 93%, compared to 7% for non-subsidized fuel.