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Jakarta Post

Ministry slaps fine on 11 companies for distribution violation  

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, December 18, 2018   /   04:12 pm
Ministry slaps fine on 11 companies for distribution violation   A 20 percent blended biodiesel (B20) pump (Courtesy of/The Indonesian Palm Oil Producers Association (Gapki) )

The Energy and Mineral Resources Ministry has laid a combined fine of Rp 360 billion (US$24.83 million) against 11 companies for violating the distribution regulation on 20 percent blended biodiesel (B20).

The ministry's oil and gas director general, Djoko Siswanto, said on Monday that the B20 distribution violations were committed during the monthlong period after the B20 mandatory use policy came into effect in September.

“On Friday, I have signed the letters [fining the 11 companies]. Their combined fines amounts to Rp 360 billion,” he said as quoted by

He said that the amount of the fines was calculated according to the Rp 6,000 per liter of biodiesel for slow or delayed distribution as stipulated in Energy and Mineral Resources Ministerial Regulation No. 41/2018.

Djoko declined to identify the companies, but he said that the violators included state-owned oil and gas holding company Pertamina and another state-owned company.

The ministry has allowed one week for each company to respond to the letters, and would not enforce the fines if the company could provide strong evidence showing that it had not violated the regulation.

Several companies had said that they could not meet the prescribed distribution period for B20 biodiesel because they needed two to three days after the blending process before the biofuel was ready to distribute.

Indonesian Biodiesel Producers Association (APROBI) Paulus Tjakrawan chairman confirmed that the deviating companies had received the ministry's fine letter and that they would submit their response within two weeks. (bbn)