"The B30 program is expected to absorb 9.6 million kiloliters of domestic biodiesel in 2020. Hence, it will reduce diesel fuel imports by three million kiloliters," Kartasasmita noted on the sidelines of the Gaikindo Indonesia International Commercial Expo (GIICOMVEC) 2020 here on Thursday.
The minister explained that the program will increase the added value of crude palm oil (CPO) to Rp13.81 trillion (US$908 million) and reduce greenhouse emissions by 14.25 million tons of CO2, or equivalent to gas emissions from 52,010 small buses.
The program, launched by President Joko Widodo (Jokowi) on December 23, 2019, and the use of B30 is mandatory from January 1, 2020. Indonesia is recorded as the first country to implement the B30 mixed-fuel in the world.
The minister has lauded the country's industry support to the biodiesel mandatory policy.
In addition to the 30 percent mixed-fuel program, the government will apply the Euro-4 emission standard in April for diesel-fueled vehicles.
Indonesia, the world's biggest palm oil producer and exporter, has been gradually increasing the bio content of its biodiesel, aiming to absorb growing supplies of palm oil while also trimming costly fuel imports.
The B30 biodiesel will allow Indonesia to cut its fossil fuel imports by Rp63 trillion ($4.5 billion) a year, up from Rp43.8 trillion saved in 2019 from the existing B20 fuels.
President Jokowi had applied the policy entailing the mandatory use of 20-percent biodiesel mixed with 80-percent diesel fuel for consumers in response to the CPO’s markdown that had contributed to the trade deficit and current account deficit.
The Ministry of Energy and Mineral Resources stated that in 2019, the B20 policy has not only reduced the country’s trade deficit but also saved $1.66 billion (Rp23.6 trillion) of the country’s foreign exchange reserves during the January-July 2019 period.
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