Photo: Terminal Petikemas Surabaya

JAKARTA (TheInsiderStories) – The use of biodiesel 20 percent (B20) as required by the government since Sept. 1, 2018 is not yet fully implemented due mainly to distribution problems. The use of B20 is aimed to reduce import of oil fuel, which is seen as the main factor causing the current account deficit (CAD).

The ministry of energy and mineral resource’s (MEMR) Oil and Gas Director General Djoko Siswanto said on Thursday (13/09) that after being implemented since Sept. 1, it could only be realized up to 80 percent.

“Due to distribution problems, the B20 implementation could not yet be implemented up to 100 percent,” said him.

Siswanto added, that in many regions, the oil refueling stations are dependent on ship transportations while procurement of ships is limited. As a result, the distributions to certain areas, especially islands, will take longer time. To certain areas could take up to 14 days.

According to him, the distribution of fatty acid methyl ester (FAME), which is processed from the crude palm oil (CPO) and mixed with the diesel fuel to make the B20, was also hindered by the availability of ships to transport the B20 from its producers to consumers in many areas. He did not give further details of the areas.

“Even in Pertamina (the state-owned energy producer), there are still 100 depots that could not yet distribute the B20 due to several problems which include distribution and the measure of B20 content,” added by Siswanto.

He said, that the government will check the problems on the field. Otherwise, said the director general, the ministry will give sanctions against those found guilty in implementing the B20 policy.

“The sanctions will include a fine of Rp6,000 per liter,” Siswanto said.

The implementation of the B20 is based on the presidential regulation Number 66 Year of 2018 on collection and use of funds from oil palm plantations, and the MEMR regulation Number 41 Year of 2018 on the production, distribution and the use of biodiesel.

Based on the regulations, all oil refueling stations are required to distribute the B20 product since Sept. 1 as a way to reduce the rising trend of current account deficit.

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