APROBI’s Commitment in Supporting the Mandatory Biodiesel Program

| Articles
Share Share on Facebook Share on Twitter Share on Whatsapp

The Indonesian Biofuel Producers Association (APROBI), which has existed in Indonesia since late 2006, has consistently demonstrated its existence in supporting government programs in developing and using Biofuels as renewable fuels. For 13 years, APROBI has continued to work with the government and various parties to pursue the development of Biofuels in Indonesia, and to fight for it in international forums.

APROBI, which brings together biofuel producers, also continues to support the implementation of the Biodiesel Mandatory Program in Indonesia. As we all know, the Biodiesel Mandatory Program is a program implemented by the Indonesian government to initiate the implementation and use of biodiesel as a fuel. 

We can see APROBI’s commitment in supporting this activity from the appreciation that APROBI often makes, such as:

  1. Reporting from CNBC Indonesia, Deputy Chairman of APROBI Hari Hanawi said that his party is ready to produce 9 million kiloliters of Biodiesel per year. With factories capacity of 11 million kiloliters, Indonesia can also export Biodiesel to several countries such as China, European countries or to the United States,
  2. In Maria Katarina’s dialogue with the Chairperson of the APROBI, Master Parulian Tumanggor, it is known that the government continues to encourage the absorption of domestic CPO production, one of which is carried out by expanding the Biodiesel market in the domestic market. Tumanggor said that current CPO absorption for the B20 program has reached 6.2 million kiloliters and for the application of B30 in January 2020 it is expected to increase to 9.5 million kiloliters. Besides, Tumanggor also explained that the trial of using 30% of Biodiesel was safe so that the application of B30 could be carried out immediately.
  3. APROBI respects the government’s decision to postpone the mandatory implementation of biofuel biodiesel by 40 percent (B40) in 2020. APROBI Vice Chairman Paulus Tjakrawan stated that the government’s consideration of delaying the mandatory B40 was acceptable due to the situation and condition of the national economy as well as the high price of CPO and the incomplete assessment.

According to Minister of Energy and Mineral Resources, Arifin Tasrif, as reported on the website of the Ministry of Energy and Mineral Resources, explained that the implementation of the B40 and B50 programs is currently in the stage of a comprehensive assessment of the composition of the mixture, economic evaluation which also includes readiness, raw materials and supporting infrastructure.

The B40 road test will be followed by a trial run on an existing diesel power plant. Until 2020, the realization of biodiesel utilization for domestic needs was 8.46 million kiloliters, which resulted in foreign exchange savings of IDR 38.31 trillion.

In July 2020, PPPTMGB Lemigas, the ESDM Research and Development Agency, began testing the durability of B40 / B50 biodiesel on the engine for the engine test bench at the PPPTMGB Lemigas laboratory. Paulus Tjakrawan appreciated the government’s readiness to run the B40 endurance test on vehicle engines. 

APROBI is very confident and optimistic that the B40 will continue even though it is postponed in 2020. The B40 technical test activity proves the government’s commitment to implementing the mandatory biodiesel program. The biodiesel companies that are members of APROBI are very well prepared to support the government’s biofuel program. APROBI specifically appreciates President Jokowi who is fully committed to implementing the B30 program in stages to build national energy security. The positive impact is that the government budget can be diverted for poverty alleviation programs, education, and infrastructure.

The benefits of the Biodiesel Mandatory Program are as follows:

  1. With the high production of Indonesian palm oil, the Mandatory Biodiesel Program can absorb palm oil production as a result of the increased demand for biodiesel.
  2. The plan to reduce imports of Indonesian Crude Palm Oil by the European Union until finally terminated in 2030: The Biodiesel Mandatory Program can increase domestic demand as a transition from decreasing export demand.
  3. 2.6 million farmers depend on the palm oil industry: The Mandatory Biodiesel program is expected to increase the price of fresh fruit bunches (FFB) at the farmer level as a result of the increased demand for biodiesel.