JAKARTA – Indonesia can save foreign exchange up to around Rp161.25 trillion so far this year from the reduction of imports of oil fuels (BBM) due to the implementation of the government’s mandatory program of palm-oil-based biodiesel 35 percent (B35) since February 2023.

PT Pertamina President Director Nicke Widyawati said that the import saving this year is even projected to be higher than that of last year as a result of the  implementation of B35 program.

She said that last year, when the government had only implemented the biodiesel mandatory program at 30% or B30, it managed to save foreign exchange up to Rp122.65 trillion.

According to her, the biodiesel program has not only saved foreign exchange, but it has also reduced carbon emission up to 28 million tons of C02e in 2022. “With the B30 production program in 2022 we can reduce oil fuels imports, and we saved foreign exchange at Rp122 trillion. This year (2023) the import reduction is projected to save foreign exchange of around Rp161.25 trillion. In terms of carbon emissions, in 2022 we can reduce 28 million tons of CO2,” she said during a hearing with the House of Representatives (DPR) Commission VI in Jakarta on Monday, 02 October 2023.

Indonesia has implemented the palm-oil-based biodiesel production program since 2008 with an initial blending percentage at 2.5%. Then it was gradually upgraded to 7.5% in 2010, 10% in 2011, 15% in 2015, 20% in 2016, 30% in 2019, and 35% since February 2023.

Nicke is optimistic that technologically the biodiesel program can be upgraded up to 100%. “Technologically, we can make it up to biodiesel 100% or B100,” she said.

She said that Indonesia has a huge potential to further develop the biodiesel, as it is the world’s largest producer of palm oil with a total production in 2021 reaching 49.7 million tons or 67% of the total production of palm oil in the world.

“Besides, Indonesia is also the world’s largest producer of biodiesel with a total production of 137,000 barrels per day,” she said.

The Indonesian government has been trying to reduce reliance on oil fuels imports, which have been continually rising from year to year. The imports have not only drained foreign exchange, but also increased carbon emissions and made Indonesia prone to fluctuations of oil prices at the global market that might destabilize the national economy.

To increase the national energy resilience, the government decided to launch the biodiesel mandatory program to blend the diesel fuel with fatty acid methyl esters (FAME), which is derived from the processing of crude palm oil (CPO). (*)

Source: sawitkita.id

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