APROBI’s Commitment in Supporting Ministerial Decree for a Better Indonesia

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Indonesia as a developing country is not yet stop to improve its regulations for a better future. The country with the fourth-largest population has recently released a ministerial decree that determines to boost utilization of palm oil. This important step of utilizing more palm oil, instead of conventional diesel, in hope to create a better environment as Indonesia currently stands in the top ten most populated country, by 40.7 air quality index (AQI) where Banten surprisingly (instead of the capital city; Jakarta) is recorded as the most polluted province in Indonesia, as of 2020.

The crucial ministerial decree by the letter number of PMK 191/PMK.05/2020 has been released in late 2020. APROBI as an organization of Indonesian biodiesel producers appreciated the recent regulation, as the chairman of APROBI, M.P. Tumanggor express his delights “We support the adjustment levy rates with the PMK no. 191/2020 by the Ministry of Finance, as this will strengthen the palm oil downstream program”. 

Aside from that, by this new ministerial decree, APROBI is looking forward to the impact of this regulation. APROBI predicts, by the year of 2021 domestic consumption of Biodiesel will continue to raise as the result of the B30 mandatory program. The target of this program is 9.2 million kiloliters absorption of Biodiesel made from palm oil. Currently the government is working to increase the B30 program to B40, where it will create a greater impact on the AQI and the environment. 

We should be aware the difference between B30 and B40 is the amount of palm oil used within the biodiesel product itself. B30 means that it uses thirty percent (30%) of biodiesel mixture, while the rest is solar. This also applies to B40, where it means that it uses forty percent (40%) of biodiesel mixture, and the rest is solar. This indeed will improve the life quality of the people in Indonesia, as also benefit other living organisms.

This program is not only beneficial for one side, as it is also felt by other stakeholders within the biodiesel supply chain. This is proven by the Chairman of Indonesian Oil Palm Smallholders Association (APKASINDO), Gulat Manurung. He mentioned that today oil palm farmers are pleased by the B30 mandatory program. He added that farmers are very welcome with Government planning to increase the blending to B40

Deputy for Food and Agriculture Coordination at the Coordinating Ministry for Economic Affairs, Musdhalifah Machmud, is delighted as Indonesia has become an example for other countries for biodiesel program. As far as today, Indonesia has been an example for some countries such as Thailand, Malaysia, and Colombia. According to her, starting in early 2020 Malaysia has experimented in applying the B20, while Thailand applying the B10, and Colombia B5. This certainly to show that Indonesia is the true leader in palm oil and biodiesel industry.