Indonesian Vice Presiden Ma'ruf Amin, said the implementing of 30 percent biodiesel use (B30) will absorb 3 Million Tons (MT) of crude palm oil (CPO) in 2020 - Photo by GAPKI

JAKARTA (TheInsiderStories) – Indonesian Vice Presiden Ma’ruf Amin, said the implementing of 30 percent biodiesel use (B30) will absorb 3 Million Tons (MT) of crude palm oil (CPO) in 2020. He delivered the data at the Indonesia Palm Oil Conference in Bali, as reported by local media today (10/31).

He asserted, that the government was ready to carry out concrete steps to improve the management of the palm oil industry, especially to supply the domestic needs. According to him, the mandatory policy of B20 has absorbed more than 4 MT CPO.

He predicting the number will increase to 6.4 million tons of palm oil by the end of the year. And, next year, he asserted, by implement B30 the industry could absorb around 10 MT of CPO throughout 2020.

He revealed that there are three steps that must be taken by the government, businesses and farmers to increase the productivity and competitiveness of Indonesian palm oil internationally namely land productivity, certification to ward off negative campaigns, and develop downstream project.

Previously, the government targeting the implementation of B30 starting October this year and B100 in five years. Recently, said the officials, that B30 was still in the testing phase. The government sees the use of B30 will reduce diesel consumption by up to three million kiloliters.

The B30 will free the country from the pressure of major European countries on palm oil, he adds. Beside, the government is also preparing an investment to produce B100 or green diesel which is targeted to begin within the next five years. The B100 program is expected to reduce diesel consumption by up to seven million kiloliters.

As many as 10 Indonesian palm oil companies, from seven companies earlier, has committed to participate in the B100 production program. And it was hoped that within the next three years the country would be able to produce green diesel independently.

Furthermore, the green diesel will be mixed with B30 which is expected to produce B50 or B60. However, in the first three years of green diesel production, the amount is expected to be sufficient to produce at least B50.

At different places, the chairman of the Indonesian Automotive Industries Association, Yohanes Nangoi, said domestic car manufacturers were ready to implement a mandatory policy on the use of B30.

“The bottom line is that most brand holder agents can accept it. They make adjustments and there is no problem. Now there are 10 brands that carry out the B30 test. In addition, the types of vehicles are more varied, including trucks, pickups, and passengers will try a test,” he told reporters last September.

Month ago, President Joko Widodo has announced that he wants the country accelerates the mandatory B30 and expecting to save US$5.5 billion per year in fuel imports.

Based on the energy and mineral resources minister data, from January to July, the country consumed around 2.95 million kiloliter of fatty acid methyl ester (FAME). The country hopes to consume 6.2 million kiloliters of FAME over the full year and 9.6 million kiloliters in 2020.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com