Market Power is The Key to Implement Biodiesel 30%

DOMESTIC palm oil production will be enough to support government plan to accelerate the use of fuel with 30% biodiesel content (B30 biofuel).

Market Power is The Key to Implement Biodiesel 30%

DOMESTIC palm oil production will be enough to support government plan to accelerate the use of fuel with 30% biodiesel content (B30 biofuel). Though, the main issue is not about the suplly but market power to absorb the products. “The key is not raw materials, but the power to soak up the products,” said Joko Supriyono, Chairman of Indonesian Palm Oil Association (Gapki) as quoted by Kotan.co.id (10/7/2018). Joko’s statement was to comment on President Joko Widodo plan to accelerate the use of fuel with 30% biodiesel content. Indonesian Biofuel Producers Association (Aprobi) also supports the plan. “We support the plan to use more biodiesel in order to reduce use of fossil fuel,” said Paulus Tjakrawan, Managing Chairman of Aprobi as quoted by Antara. Aprobi predicted biodiesel domestic consumption will reach 3,5 million kiloliters. About 2,8 million KL of them will be used by Public Service Obligation (PSO) and the rest 500.000 Kl for non-PSO. The implementation biodiesel mandatory in the country can help boost biodiesel domestic consumption up to 500.000 ton per year. This year, Aprobi is targeted to produce 3,5 million kiloliters. ***