B30 may save US$4.8 million in foreign exchange

B30 may save US$4.8 million in foreign exchange

Photo File: The Coordinating Minister of Economy Airlangga Hartarto (second right) delivered a statement to the press in South Sulawesi, Tuesday (Nov 12, 2019). ANTARA/Darwin Fatir/GTM

The B30 mandatory policy will be officially implemented nationwide on January 1, 2020. We have targeted it may save the country $4.8 billion in foreign exchange throughout 2020
Jakarta (ANTARA) - Indonesia's 30 percent blended biodiesel (B30) mandatory policy to be launched early next year may save US$4.8 billion for the country in foreign exchange in 2020, Coordinating Minister of Economic Affairs Airlangga Hartarto stated here, Friday. "The B30 mandatory policy will be officially implemented nationwide on January 1, 2020. We have targeted it may save the country $4.8 billion in foreign exchange throughout 2020," Hartarto remarked.

The authority has planned to run the trial of B30 for use in the transportation sector this month as the preliminary test results showed that the uses of 20 percent blended biofuel (B20) and B30 had met the qualifications required after short test parameters.

The short test parameters whose indicators include the Fatty Acid Methyl Esters (FAME) level, density, viscosity, water and acid levels, aimed to show the quality of blended biofuel. According to the preliminary tests, the uses of B20 and B30 had no significant impact on the vehicle's performance.

The B30 policy, according to the minister, decreased the country's import on fuel by 3.37 percent (month-to-month) to US$14.77 billion in October this year.

"Indonesia's government is committed to cut the fuel imports in the future," he added.

Apart from the B30 mandatory policy, the authority has also revitalized PT Trans Pacific Petrocemical Indotama (TPPI) to substitute imports of petro-chemical products. TPPI is a subsidiary of PT Tuban Petrochemical Industries, of which the state-owned oil and natural gas holding Pertamina controls 41 percent.

Besides, the ministry has launched several measures such as developing the green refinery, decreasing the use of Liquified Petroleum Gas (LPG), and utilizing more Dimethyl Ether (DME) is which processed by coal gasification.

The coal gasification was a process of converting the fossil fuel-based carbon materials into carbon monoxide, hydrogen, and carbon dioxide.

"These measures aim to strengthen Indonesia's trade balance," he stated.

In October this year, the country's balance of trade was $163.9 million in surplus, while the trade deficit reached $163.9 million in September 2019. (INE)

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