Kartini L Makmur, Robert Sidauruk
The Government is considering increasing the biodiesel indices mixtures for diesel fuel from the current 2.5% to 10%. This measure is being considered in order to reduce imports of diesel fuel that reached USD 9.8 million in the second quarter of 2013, an amount equal to 4.4% of total GDP.
By doing so it is hoped that imports of diesel fuel can be decreased by 3.5 million kiloliters from the recent levels of annual imports reaching 35 million kiloliters. This proposed policy appears to be realistic given the fact that national biodiesel production reached 4.5 million kiloliters and that this domestic biofuel can be used for transportation and electrical power plants.
Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources, admitted that there is a hesitance among biodiesel producers to sell their products due to several commercial considerations. Hence, he continued, it is necessary to create specific policies that support this eco-friendly fuel.
“By imposing a mandatory selling policy, producers will have no option other than to sell their products,” says the Deputy Minister.
In conjunction with the proposed policy, the Government has also set a renewable energy utilization target of 22% by 2025. To realize this plan, Vice President Boediono is urging all related Government institutions to address any barriers in achieving the target with one measures being to increase the biodiesel mixture indices for diesel fuel.
While supporting the proposed policy, Paulus Tjakrawan, Secretary General of the Indonesian Biofuel Producers Association stated that proper infrastructure remains the biggest obstacle for realization of the proposal. For example, there is currently an insufficient numbers of tankers and storage tanks to transport biofuel outside of Java.
Despite the infrastructure issue, the Director of Renewable Energy, Rida Mulyana, has confirmed the policy will be issued on Wednesday, 28 August.
“We have drafted the Minister of Energy and Mineral Resource Regulation to incorporate the policy,” Rida says.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
The Government is considering increasing the biodiesel indices mixtures for diesel fuel from the current 2.5% to 10%. This measure is being considered in order to reduce imports of diesel fuel that reached USD 9.8 million in the second quarter of 2013, an amount equal to 4.4% of total GDP.
By doing so it is hoped that imports of diesel fuel can be decreased by 3.5 million kiloliters from the recent levels of annual imports reaching 35 million kiloliters. This proposed policy appears to be realistic given the fact that national biodiesel production reached 4.5 million kiloliters and that this domestic biofuel can be used for transportation and electrical power plants.
Susilo Siswoutomo, Deputy Minister of Energy and Mineral Resources, admitted that there is a hesitance among biodiesel producers to sell their products due to several commercial considerations. Hence, he continued, it is necessary to create specific policies that support this eco-friendly fuel.
“By imposing a mandatory selling policy, producers will have no option other than to sell their products,” says the Deputy Minister.
In conjunction with the proposed policy, the Government has also set a renewable energy utilization target of 22% by 2025. To realize this plan, Vice President Boediono is urging all related Government institutions to address any barriers in achieving the target with one measures being to increase the biodiesel mixture indices for diesel fuel.
While supporting the proposed policy, Paulus Tjakrawan, Secretary General of the Indonesian Biofuel Producers Association stated that proper infrastructure remains the biggest obstacle for realization of the proposal. For example, there is currently an insufficient numbers of tankers and storage tanks to transport biofuel outside of Java.
Despite the infrastructure issue, the Director of Renewable Energy, Rida Mulyana, has confirmed the policy will be issued on Wednesday, 28 August.
“We have drafted the Minister of Energy and Mineral Resource Regulation to incorporate the policy,” Rida says.
(hot/kc)