- The Deputy for Food and Agribusiness Coordination at the Coordinating Ministry of Economic Affairs, Dida Gardera (“Deputy”), has affirmed that the government is set to begin trials/road testing of its new 50% biodiesel fuel mixture (“B50”) by 2025, with full implementation expected between 2027 and 2028. The Deputy explained that the B50 road testing would commence following the mandatory implementation of the 40% biodiesel fuel mixture (“B40”), which is set to take effect on 1 January 2025.
- In terms of the mandatory adoption of B40, the Deputy has affirmed that the government has already implemented various measures in order to ensure overall readiness, including evaluations of the following areas: 1) The biofuel production capacities of biodiesel businesses; 2) Infrastructure readiness and supporting capacities (e.g. availability of transportation options, specifications of vessels and the capacities of fuel terminal facilities); and 3) Technical performance and the results of B40 road testing, as conducted over long distances of up to 50,000 km.
- Additionally, the Deputy has stated that analyses conducted by the Public Service Agency of the Palm Oil Plantation Fund Management Agency (Badan Pengelola Dana Perkebunan Kelapa Sawit – “BPDPKS”) have confirmed that sufficient funds are available to support the implementation of the mandatory B40 program in 2025. In this context, the Deputy explained that a B40 distribution target of 16.08 million kiloliters has been set with the required estimated BPDPKS funding totaling approximately Rp. 37.5 trillion. (ANT)
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