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Jakarta Post

Biodiesel consumption to slip 13.6 percent this year

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Tue, July 28, 2020   /   08:12 pm
Biodiesel consumption to slip 13.6 percent this year Trucks line up at Sunda Kelapa Port in North Jakarta are pictured in this undated photo. (JP/Arief Suhardiman)

Consumption of key biodiesel ingredient fatty acid methyl esters (FAME) in Indonesia is expected to fall short of this year's target by 13.6 percent amid falling fuel consumption.

Consumption is expected to reach 8.3 million kiloliters, down from 9.6 million kl of subsidized FAME allocated for this year, said the Energy and Mineral Resources Ministry’s Renewables Director General Sutijastoto on Tuesday.

Despite the lower consumption, his office will not revise the annual biodiesel subsidy budget, which is stipulated under energy ministry decree No. 119/2019.

“We still keep the decree in case things change,” he told reporters at a press briefing.

The ministry’s estimate is based on state-owned Pertamina’s projected fuel demand. The top fuel distributor expects fuel consumption to fall by around 25 percent this year, compared with normal conditions, as businesses remain partially closed.

The lower fuel consumption is primarily driven by lower aviation fuel and gasoline consumption, which are respectively used by airplanes and private vehicles. Diesel consumption fell less steeply as commercial vehicle activity remained relatively more active amid social restrictions.