Biodiesel production realization up to September 2018 reached 3.49 million kiloliters.

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30/10/2018 13:54 WIB

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National biodiesel production reached 3.49 million kiloliters from January to September 2018, against a target of 5.7 million kiloliters.

Indonesia Biodiesel Production Realization (2014-September 2018)

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Indonesia Biodiesel Production Realization (2014-September 2018)

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The Indonesian government expanded its mandatory B20 program starting September 1, 2018. This expansion mandates the use of fuel containing 80% diesel and 20% palm oil-based biodiesel for both subsidized (Public Service Obligation/PSO) and non-PSO sectors.

According to the Ministry of Energy and Mineral Resources (ESDM), national biodiesel production in 2017 reached 3.41 million kiloliters and is targeted to reach 5.7 million kiloliters in 2018. Realization from January to September 2018 reached 3.49 million kiloliters. Despite initial opposition, the mandatory B20 program continues, although some field-level shortcomings remain.

According to Coordinating Minister for the Economy, Darmin Nasution, the policy expansion of the mandatory B20 aims to boost the national economy and protect the environment. The current high current account deficit is partly due to the large import of diesel fuel from Singapore. This policy is expected to reduce fuel imports and increase biodiesel exports. It will also increase the demand for palm oil as a biodiesel feedstock.

"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."