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Support Government Programs and Policies Regarding Biodiesel

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By: Indah Rahmawati) *

President Jokowi has released the B30 biodiesel program on Monday (12/23/2019). Biodiesel B30 is a kind of 30 percent biodiesel blend which is predicted to reduce fuel imports and increase exhaust emissions.
Breakthrough after breakthrough is currently being promoted by the government. Not only suppressing the fuel import figures, but the application of the B30 breakthrough is expected to be able to save on foreign exchange imports. This will certainly strengthen the economic conditions in Indonesia. Although the B30 is still in the testing phase, but there are already several brands of diesel cars that use it.

According to the Director of Bioenergy at the Ministry of Energy and Mineral Resources ESDM Andriah Feby Misna, explained that in addition to ensuring the readiness of producers as well as quality and product quality certification, the Ministry of Energy and Mineral Resources has also provided a guidebook for suppliers in handling handling and distribution of biofuel blends and also solar.

In fact, the Ministry of Energy and Mineral Resources together with diesel car manufacturers have conducted a 50,000 kilometer road test in the areas of West Java and Central Java using B30 from May 2019 to November 2019. The vehicles used have weights above 3.5 tons and below 3 , 5 tons. From the results of the road test, Andriah detailed that the influence of the use of biodiesel on the performance of engines for vehicles with a capacity of 3.5 tons turned out to be able to increase its power. With details; the level of fuel consumption is small but emissions have decreased between 0.01 to 0.8 grams.

For information, as for the replacement of fuel filters for new vehicles need to be replaced in the range of use between 7,500 to 15,000 kilometers. Which means changing the filter a little earlier after that returns to normal. B30 trials will then be applied to fuel railroad, ships, power plants and transport vehicles in the mining sector.

The Ministry of Energy and Mineral Resources in 2020 has also determined the allocation of B30 to be distributed by Pertamina at 25 delivery points in the areas of Jakarta, Medan, Balikpapan, Plaju, Rewelj and also Boyolali.
Regarding prices, the B30 has the same price as diesel fuel set in the market. If there is a price difference with the international price of the MOPS, it is subsidized by the government through the budget of the Palm Oil Plantation Fund Management Agency (BPDPKS).

Meanwhile, Coordinating Minister for the Economy Airlangga Hartanto explained, one of the government’s efforts to reduce oil and gas imports is biodiesel. At the end of last year, the government had implemented 20 percent biodiesel (B20) and in January the level of crude palm oil (B30) would be increased to 30 percent (B30).

According to him, with the absorption of crude palm oil (CPO) of 10 million kiloliters (KL) to meet the needs of B30, Indonesia could save foreign exchange from oil and gas imports up to 8 billion US dollars or around Rp 112.8 trillion (exchange rate of Rp 14,000 ) and able to reduce the trade balance deficit. Wow, a pretty fantastic number right?

The B30 program is suspected to be a government road map to reduce the current account deficit or what is commonly called the current account deficit (CAD). Gradually, the government will increase the percentage of CPO in biodiesel to reach 100 percent. In fact, the Government is targeting the biodiesel program to be implemented in the next two years.

In addition, the government will also initiate a program to shift the use of avtur fuel to green avtur. Airlangga said, with the realization of the program, it would be able to save foreign exchange up to 2 billion US dollars or equivalent to Rp.28.2 trillion.

Furthermore, Airlangga added that applying Avtur green for 1 year needs would save US $ billion. This program is expected to improve the trade balance and reduce oil and gas dependency. Various innovations in the world of fuel can be implemented as a first step in simplifying Indonesia’s well-known complicated economic regulations and many rules. If the application of B30 is successful, it is quite possible that the Nusantara economy will rebound rapidly. And can improve other sectors.

The good news is that Biodiesel is the best candidate to replace fossil fuels as the world’s main transportation energy source. Given fossil fuels, including types of natural resources that can not be renewed. So that the savings will be able to preserve nature. In addition, biodiesel is a renewable fuel that can replace diesel petrol in engines today and can be transported and sold using today’s infrastructure.

) * The author is a social economic observer

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