"The (COVID-19) pandemic has slightly slowed down the utilization of biodiesel owing to declining consumption in the transportation sector. However, the government is upbeat about the use of FAME (fatty acid methyl ester) until the end of this year surpassing last year's consumption due to the implementation of B-30 (a 30-percent biodiesel mix)," Chief of the Communication and Public Information Service Bureau of the Energy and Mineral Resources Ministry Agung Pribadi stated here on Friday.
Biodiesel consumption has risen significantly since 2016 by nearly 50 percent to reach 3.75 million kl in 2018 as compared to 2.57 million kl in 2017. The government will mandate the use of biodiesel blended fuels until consumption is clocked at 6.39 million kl.
The use of biodiesel mix has not only reduced the country's dependence on imported fuels but it has also had a larger multiplier effect on palm oil growers.
In fact, several parties, including Traction Energy Asia research manager Ricky Amukti, has supported and commended the use of biodiesel mix.
"Looking ahead, with this mandatory (use of biodiesel mix), we are optimistic that self-financing farmers can directly contribute to the biodiesel supply chain. In addition, we are upbeat about policies capable of encouraging the contribution," Amukti noted recently.
Furthermore, Amukti lauded the government for its efforts to support palm oil growers through mandating the use of biodiesel.
"For the umpteenth time, the president has always said biodiesel will be able to absorb palm oil from farmers. He last reiterated the statement while delivering his speech at the plenary session on August 14. May there be a great leap to support the farmers' welfare," he added.
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