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Kadin calls for incentive to boost biodiesel output amid higher rollout
Incentives are critical to encouraging producers to ramp up production and investing in a more efficient processing technology, the Indonesian Chamber of Commerce and Industry (Kadin) said.
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A man unloads palm oil seeds from a pickup truck on July 10, 2024, after bringing them from a plantation to sell at a market in Sepaku, East Kalimantan. (AFP/Yasuyoshi Chiba)
T
he Indonesian Chamber of Commerce and Industry (Kadin) has urged the government to provide incentives so that producers could boost biodiesel output, as President Prabowo Subianto pushed for further adoption of the biofuel in the country.
M. Maulana, Kadin’s chairman of energy and natural resources strategic planning and institutional affairs, said that incentives are critical to encouraging producers to ramp up production and invest in more efficient processing technology.
“We are ready to be the government’s strategic partner to align the [mandatory B40] policy with the national energy and mineral resources road map, including to ensure the sustainability of raw material supplies and [B40] absorption in the domestic market,” he said, as reported by Bisnis.
The Energy and Mineral Resources Ministry had planned to launch a mandatory requirement of 40 percent palm oil-derived fuel in biodiesel (B40) on Jan. 1 from the current 35-percent mix, but give local industry time to adapt to the higher level of fuel in the mix until the end of February.
Next year, the ministry has set its sights on increasing the mandatory mix to 50 percent.
Read also: B50 biofuel goal may cause palm oil deficit
Maulana went on to say that the mandatory B40 program is an important part of the government’s effort to reduce greenhouse gas emissions and increase the renewable energy portion of the national energy mix.
