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Jakarta Post

Govt plans to double B20 biodiesel consumption next year

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, November 27, 2018   /   03:16 pm
Govt plans to double B20 biodiesel consumption next year A 20 percent blended biodiesel (B20) pump. (Courtesy of/The Indonesian Palm Oil Producers Association (Gapki) )

The government plans to double the consumption of 20 percent blended biodiesel ( B20 ) amid the declining price of palm oil on the global market.

Energy and Mineral Resources Ministry Renewable Energy Director General Rida Mulyana said on Monday that the B20 consumption target for next year would be 6.2 million kiloliters.

“We expect there will be an increase in the consumption of B20 by 3 million kiloliters [next year],” he said as quoted by, adding that the state-owned electricity company alone was expected to consume about 700,000 kl of B20 next year.

“The consumption increase is expected to help boost the crude palm oil [CPO] price and help oil palm growers.”

As one of the word’s largest CPO producing country, Indonesia was hit hard by the sudden decline in the commodity’s price to around US$420 per ton from around $530, last week.

In response, the government has temporarily removed the export levy that was usually charged by the Indonesian Oil Palm Estate Fund (BPDP-KS) for replanting.

The government introduced the mandatory use of B20 in early September as part of its efforts to reduce crude oil imports that have contributed to the widening trade deficit and current account deficit. (bbn)