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‘Cleaner’ fuel program to start on Sept. 1, but no restrictions yet
The government aims to bring down the sulfur content in fuels sold in the country to no more than 50 parts per million (ppm), from the current approximately 500 ppm for gasoline and up to 3,500 ppm for the lowest grade of diesel.
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Supply-side: A gas station worker refuels a car along a section of the Palembang-Jambi highway in Tanjung Kerang, Musi Banyuasin regency, South Sumatra, on Tuesday. (Antara/Nova Wahyudi)
T
he government plans to start distributing “cleaner fuel” on Sept. 1 in an effort fight air pollution in Jakarta and possibly in other major cities, but experts caution that the policy could lead to a higher financial burden on the state-owned enterprise producing the fuels, as well as the state budget.
The new fuels will have a decreased sulfur content and will start with the CN 48 diesel fuel brand Solar before possibly being expanded to other fuel products by state-owned oil and gas firm Pertamina, including subsidized RON-90 gasoline brand Pertalite.
The government hopes to bring down the sulfur content in fuels sold in the country to no more than 50 parts per million (ppm), from the current approximately 500 ppm for gasoline and up to 3,500 ppm for the lowest-grade diesel.
Coordinating Economic Minister Airlangga Hartarto announced the low-sulfur fuel plan for September after meeting with several ministers on Tuesday, including Maritime Affairs and Fisheries Minister Wahyu Sakti Trenggono, who also confirmed the plan.
Airlangga said the government would familiarize the public with the low-sulfur fuel program before starting it on Sept. 1. He also said there would be no restrictions on subsidized fuel sales yet to non-eligible customers but said a “targeted subsidized fuel distribution” plan remained in place.
On July 9, Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on his Instagram account that the government would make subsidized fuel available only to eligible customers and introduce cleaner fuel with a much lower sulfur content. He said both programs would begin on Aug. 17.
Rachmat Kaimuddin, undersecretary for transportation and infrastructure at the Office of the Coordinating Maritime Affairs and Investment Minister, said the high sulfur content in the fuel currently sold in Indonesia significantly contributed to air pollution, especially in Jakarta.
