The application of Biodesel B20 can help increase the price of Crude Palm Oil (CPO) and reduce fuel imports
CIDISS. Dissemination of the Use of B20 Biodiesel is increasingly driven by the Government, starting as of September 1, 2018 the application of the use of palm oil mix of 20% (Biodiesel 20 / B20) is applied to all diesel-engined vehicles in Indonesia, in addition to being able to save foreign exchange. will reduce the number of national imports, and can spur an increase in the price of Crude Palm Oil (CPO) in Indonesia.
President Jokowi said the use of biodiesel will reduce oil imports which are not small. Even reducing the cost of up to USD 5-6 billion “I have given my target to the ministers so that in this one year there really is a change in the settlement of the current transaction defect” said the President at the Ceremony of the Realization of 1 million CBU export units on Wednesday (5 / 9/2018) in Tanjung Priok Jakarta.
The use of B20 biodiesel can improve the performance of Indonesia’s trade balance deficit in the oil and gas sector, for the past six months the deficit was USD 5.4 billion, while non-oil and gas surplus was USD 4.4 billion, but if the results were still in deficit, the Coordinating Minister for Economic Affairs Darmin said “We believe that once the B20 is carried out until the end of the year, we will not be deficit in total, plus tourism activities.”
Minister Darmin Nasution added, “The use of B20 Biodiesel will be able to absorb more domestic CPO production which in turn can maintain CPO price stability and expand employment” domestic consumption of CPO increases both amid low CPO prices, with the application of consumption B20 domestic palm oil is expected to increase in the future, the impact will reduce fuel imports.
B20 products can reduce fuel oil imports by 6.9 Million Kiloliters and save the country’s foreign exchange up to USD 2 Billion per year. In addition, B20 is also able to reduce CO2 emissions equivalent to 9 to 18 million tons per year. The government is targeting B30 products to be achieved by 2020.
By: Rikky, S *)
