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B20 mandatory use starts effective next month
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Coordinating Economic Minister Darmin Nasution. (JP/Anton Hermansyah)
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oordinating Economic Minister Darmin Nasution said on Monday that President Joko “Jokowi” had signed a presidential regulation on the mandatory use of 20 percent blended biodiesel (B20), which will go into effect on Sept. 1.
Jokowi signed Presidential Regulation No. 66/2018 on the mandatory use of B20 in all segments of market on Aug. 15, Darmin said, adding that actually, B20 had been used since 2016, but it was limited to public service obligation (PSO) fuel under the brand of Solar diesel fuel.
“Starting from Sept. 1, B20 will be used as non-PSO usage. The fuel can be used for transportation as well as heavy and military equipment,” Darmin said as quoted by kontan.co.id, adding that they only requested two months for them to carry out trial.
The transportation methods that require B20 include buses, ships and locomotives.
Darmin explained the mandatory use of B20 was part of the government effort to boost the use of palm oil domestically amid decreasing price of crude palm oil (CPO) in the global market.
The minister said a number of ministries in coordination with relevant institutions were working to encourage the development of downstream industries for exports in trying to boost consumption of the commodity.“For palm oil, our policy is to boost demand. We cannot stop production of palm oil because the plants are already in production. That is why we are creating demand for palm oil products,” the minister added. (bbn)
