Indonesia’s B20 Expansion Reaches 80% of Target

Energy and Mineral Resources Minsitry oil and gas director general Djoko Siswanto has said that a program introduced in August on the mandatory use of 20% blended biodiesel (B20) has reached 80 percent of its target, reported The Jakarta Post on September 17. He was referring to the results of their monitoring of the B20 expansion program by state-owned oil and gas holding company Pertamina.  He expressed optimism over reaching 100 percent of the target by the end of 2019.

According to Pertamina logistics supply chain and infrastructure director Gandhi Sriwidodo, of the targeted 2,265 million kiloliters (kl) of fatty acid methyl ester (FAME), Pertamina used 1.8 million kl of FAME in the mix between January and September.  The mandatory use of B20 biodiesel is part of the government’s effort to reduce the import of crude oil, which is blamed for the swelling current account deficit and weakening rupiah.  The program also aims to absorb the country’s large production of palm oil amid the commodity’s weakening price in the international market.  Indonesia is the world’s largest producer of palm oil.