"We are ready to support implementation of biodiesel 20, Euro emission standard determined by the government," general chairman of the Indonesian Federation of Motor Vehicle Industry(Gaikindo) Yohannes Nangoi at the opening of Gaikindo Indonesia International Auto Show (GIIAS) 2018 in Tangerang Selatan, on Thursday.
Industry Minister Airlangga Hartarto said B20 is designed as substitution for imported fuel to save US$21 million per day or US$5.9 billion a year.
"Certainly this is the fastest import substitutions and would improve the country`s balance of payments," Airlangga said.
Previously, only subsidized diesel engine vehicles or public service obligation vehicles such as railways were required to use B20 for fuel .
Ahead, non PSO diesel engine vehicles such as heavy equipment in the mining sector, tractors and excavators and private cars using diesel engines are also required to use B20 for fuel.
Therefore, the government will revise the Presidential Regulation No 61 of 2015 on collection and use of Oil Palm Plantation Fund . The revision is awaiting only for the signature of President Joko Widodo.
Airlangga said non-subsidized biodiesel is larger in supply than subsidized biodiesel. Supply of non-subsidized biodiesel is estimated to reach 16 million tons.
"That means there is additional demand for 3.2 million tons biodiesel per year," he said.
Airlangga said the basic material for biodiesel is available in abundance in Indonesia in the form of crude palm oil (CPO).
"The country`s production capacity for CPO was 38 million tons in 2017. Around 7.21 million tons of the production are for exports, and 8.86 million tons for domestic food basic material," he said.