The Growth of Biodiesel as an Alternative Energy in Indonesia

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It has been more than 10 years since the beginning of the biodiesel implementation program in Indonesia. As we track back to the year 2008, it was the year when Indonesia started to implement the rather more eco-friendly diesel-based fuel. The diesel-based fuel itself has played an important role in the daily life of people in the country, as we all may know that there are many things other than vehicles that utilize diesel fuel.

It is still very common to find diesel-based cars anywhere on the street in Indonesia, as the type of the car itself is still one of the favorites to be owned by the people in Indonesia. There are plenty of benefits of the diesel-based vehicle, as it is the main reason why people are still loving it. A diesel-based vehicle is relatively cheaper in terms of fuel consumption, and is more powerful in some terrain. Other than that, please notice that diesel fuel consumption also applies for industrial purposes, such as factories, diesel power plants, and many more.

In the year 2020, it was recorded that a total of 63.96 million kilolitres (Kl) fuel was consumed, where the consumption of diesel and petroleum was the third-highest among other fuel consumption. Diesel and petroleum consumption reached the amount of 14.39 million Kl, therefore this is a piece of evidence that diesel-based fuel is still one of the favorites for the people in Indonesia, as it also means that the potential of biodiesel growth in Indonesia is very wide open. However, talking about the usage of diesel-based fuel, this kind of fuel is not very good for the environment, therefore the government of Indonesia has implemented the biodiesel program for a better environment, where the regulation has been improved from time to time.

It is important to note that the usage of diesel fuel is not only for transportation. There are a lot of industrial types that use diesel fuel to operate their machines to accelerate the production rate. Aside from that, it is believed that the demand for biodiesel will keep increasing in the future because the government of the Republic of Indonesia is working hard to implement the higher mixture of palm oil into the diesel fuel (biodiesel mixture).

Today the regulation and implementation of biodiesel usage in Indonesia have been improved a lot since its first appearance for the public in 2008. The Indonesian government through The Ministry of Energy and Mineral Resources (ESDM) has regulated the utilization of B30 biodiesel as mandatory, whether it is PSO or non-PSO for the transportation fuel segment. However, it is to be known that in 2019, despite only the B20 biodiesel type, it will be mandatory for all segments of users whether it is industrial or personal use.

Therefore it is expected that the growth of Biodiesel fuel will keep increasing in Indonesia, as there is more segment to utilize the fuel, the mixture of the biodiesel will also be increasing as the government aims to reach the B100 by the year of 2024, through state-owned oil enterprises, Pertamina.