Indonesia’s Biodiesel Usage Allocation on 2021
Indonesia, the world’s largest producer and exporter of palm oil, plans to lower its allocation of biofuels for 2021, as the government adopts a more cautious outlook for fuel consumption for 2021.
Through the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources has set the volume allocation for Biodiesel Type Biofuel (BBN) in 2021 at 9.2 million kiloliter (KL). The current government has appointed 20 producers as biodiesel suppliers who will boost the mandatory 30% biodiesel (B30) success program. This number is slightly lower than the initial estimation of 9.6 million KL per year. However, the demand for fuel in the transportation sector is expected to be impacted, especially due to the COVID-19 pandemic. Through the B30 program, Indonesia is expected to be successful in blending 30% palm oil to fuel and make a homogenous biodiesel.. Under its ‘B30’ mandate, is expected to reduce the fuel import quota, whilst also boosting the domestic production of palm oil. The biodiesel also serve as one of government initiative of cleaner energy option.
The decision to shift the energy sources into biofuel energy began in 2018 when the mandatory B20 program was applied which regulate the transportation and construction sectors to mix of 20% palm oil to their production fuel . With the success of the B20 program, the proportion of biofuel content is increased to 30% and is planned to be 40% in the upcoming years.
Although the biodiesel allocation in 2021 is calculated to be lower, the government still believes that biodiesel demand is expected to increase by an average of 2.9% per year, between 2020-2025. Biodiesel consumption will also forecasted to increase by 7% over the next decade.
The mandatory B30, B40, B50, and so forth, constitute hopes, opportunities as well as challenges for the palm oil plantation industry. They represented an opportunity to support the country’s energy resilience as well as being self-sufficient in accommodating the country’s energy demand.
Indonesia had been lulled for too long with its imports of diesel oil and also by the pride of being the world’s largest CPO exporters but did not realize how dependent the country has become to the price fluctuation in the international market.. The unpredictable shift has brought many difficulties for local players in navigating the market’s direction and focus.
In line with the government’s program, Triputra Energi Megatara is also committed in participating to the B30 program by blending 30% of palm oil in the fuel products sold to the market. This decision is also parallel with Triputra Energi’s vision to commit and to bring the best cleaner fuel standards for the betterment of the community and the environment.
TEM is competing with compelling product quality and value-added service. Emerging from a strong, high-quality product background from Mobil Diesel Oil, Triputra Energi is also equipped with excellent services procedure.
The core of our business lies in our excellent biodiesel that is curated to achieve a cleaner and efficient source of energy for the betterment of our tomorrow.