President Joko Widodo confident Indonesia could save Rp63 trillion (US$4.5 billion) of foreign exchange use with the implementing of 30 percent biodiesel program or B30 - Photo by President Office

JAKARTA (TheInsiderStories) – President Joko Widodo confident Indonesia could save Rp63 trillion (US$4.5 billion) of foreign exchange use with the implementing of 30 percent biodiesel program or B30. He claimed it when inaugurate the implementation of B30 in state-owned energy producer, PT Pertamina gas station in South Jakarta, on Monday (12/23).

“But for me it is not enough to just get to B30. I have ordered the ministers and CEO of Pertamina to start the B40 later next year and early 2021 also go to B50,” said the head of state.

He explained, there are three reasons the government continues to accelerate the implementation of the biodiesel program. First, the program is a form of endeavor to look for new renewable energy sources. Widodo asserted, Indonesia must free itself from dependence on fossil energy which will one day be exhausted.

Second, he continued, Indonesia’ dependence on imports of fuel oil is quite high. On the other hand, the country also the largest oil producer country in the world.

“With the potential of such a large palm oil, we have many sources of biofuel as a substitute for diesel fuel. We must exploit this potential to support our national energy security and independence,” said the president.

Widodo stressed, that efforts to reduce imports, especially diesel fuel, must seriously. Third, he revealed, the application of B30 will also create huge domestic demand for crude palm oil (CPO).

In addition, according to the president, the implementation of B30 will also have a multiplier effect on 16.5 million oil palm farmers and planters. Currently, Indonesia’ CPO exports often face challenges in the form of negative campaigns, for example from the European Union.

While, CEO of Pertamina, Nicke Widyawati, stated that the company had taken rapid steps by testing B30 distribution since November 2019 in several major cities such as Palembang, South Sumatra, Yogyakarta, Central Java, Balikpapan, East Kalimantan and Sorong , Papua.

“Pertamina has prepared 28 fuel oil terminals as the mixing point of B30, which will be distributed to all our gas stations throughout Indonesia,” she said.

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