4 Regulations to Rule B20 Mandatory Use

THE government policy to expand the mandatory use of biodiesel B20 will soon become effective. Starting from 1 September 2018, the government mandates that all diesel consumers, including in Public Service Obligation (PSO) and non-PSO sectors, use biodiesel B20. The government has enacted four regulations to rule the policy. Firstly, the Presidential Regulation (Perpres) no 66 year 2018 regarding the second amendment to Perpres No 61/2015 regarding Collection and Disbursement of Oil Palm Estate Fund. The Perpres was signed by President Joko Widodo on 15 August 2018. This Perpres was followed by enacting a Minister of Energy and Mineral Resources (MEMR) Regulation No 41 year 2018 concerning provision, utilization of Biodiesel fuel under financing by the Indonesian Oil Palm Estate Fund. This regulation was signed by MEMR Minister Ignasius Jonan on 23 August 2018. The other regulation is Minister of Energy and Mineral Resources’ Decree Number 1935 K/10/MEM/2018 dated 27 August 2018 regarding revision to MEMR’s Decree number 1803 K/10/MEM/201 regarding biodiesel producers and biodiesel allocation quota for Pertamina (Persero) and PT AKR Corporindo Tbk for the period of May to October 2018. The fourth regulation is Minister of Energy and Mineral Resources’ Decree Number 1936 K/10/MEM/2018 dated 27 August 2018 concerning Procurement of Biodiesel Fuel for Blending with Fuel for period of September to December 2018. Those four regulations lay down rules on the exercise of many aspects, including sanctions threat in order to make businesses obey the policy. The policy to expand mandatory use of B20 policy aims to make the use of biodiesel blended fuels compulsory for all vehicles and heavy machinery in both Public Service Obligation (PSO) and non-PSO sectors. B20 is a blend of 20 percent by volume biodiesel with 80 percent by volume petroleum diesel. It is more popularly known as a subsidized fuel sold in Pertamina’s gas stations under the brand name Biosolar. ***