The impact of the policy will save foreign exchange, the Coordinating Minister for Economic Affairs, Darmin Nasution, said after a short meeting to discuss the accelerated implementation of mandatory biodiesel mix policy at the Presidential Office in Jakarta on Friday.
The government deemed it necessary to save foreign exchange as the country`s balance of trade has seen a deficit for quite a long time, he said.
"For four years, we have recorded a deficit, particularly in oil and gas trade," he said, adding that the country saw a deficit of US$5.4 billion in oil and gas trade just in the first half of 2018.
However, the balance of trade in non-oil and non-gas commodities recorded a surplus of US$4.4 billion, bringing down the country`s trade deficit to nearly US$1 billion over the period, he said.
By accelerating the implementation of the mandatory biodiesel mix policy, the importation of fossil fuels can be reduced and the current account deficit can hopefully decline, Nasution explained.
"We have calculated it," he said. "After checking certain data, including data regarding foreign exchange for the importation of fuel oils, we found that it can reach nearly US$5.5 billion per year. Just in the first six months of 2018 the deficit was US$1 billion, so the deficit could reach US$2 billion in one year."
Reporter: Bayu Prasetyo
Editor: Yosep Hariyadi
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