BPDPKS Allocates Funds to Support Expansion of B20 Mandatory Use

The Indonesian Oil Palm Estate Fund (BPDPKS) stands ready to contribute in carrying out government’s initiative to expand the mandatory use of B20 in order to push the use of renewable energy and to save foreign exchange reserves as well. BPDPKS allocates insentive fund to support biodiesel production. “We allocate funds to support expansion of the mandatory use of B20 which is expected to soak up palm oil surplus in the market,” President Director of BPDPKS Dono Boestami said. Dono’s statement came as he delivered speech on the National Seminar on Indonesian Oil Palm with the theme “Strengthening BPDPKS Institutional Foundation to Support Indonesian Sustainable Palm Oil, Reduce the Poverty Rate, and Improve People’s Welfare” at Borobudur Hotel, Jakarta, Monday (20/8/2018). It is already known that the Government is  implementing a policy to expand the mandatory use of 20 percent biodiesel blend (B20) fuel. Under this policy, B20 fuel will be used by both Public Service Obligation (PSO) sector and non-PSO sector. “On 15 August 2018, President Joko Widodo signed Perpres No 66/2018 regarding second amendment of Perpes No 61/2015 to regulate expansion of the mandatory use of B20. Starting from 1 September 2108, B20 will be used by both PSO and non-PSO,” Coordinating Minister for Economic Affairs Darmin Nasution said in his speech on the seminar. Meanwhile, Dono said that BPDPKS commits itself to carry out the program. “In order to support use of biodiesel, in 2017 BPDPKS has disbursed incentive for 2,3 million kilo liter of biodiesel. Until first semester of 2018, BPDPKS has disbursed incentive for 1,1 million kilo liter of biodiesel,” Dono said. In that case, Darmin voiced concern about supporting BPDPKS so that expansion of the mandatory use of B20  can be fully implemented . “We need to strengthen BPDPKS foundation, especially in terms of fund disbursement,” Darmin said in his speech. At the same time, Trade Minister Enggartiasto Lukita stressed the importance of expanding BPDPKS’ role to strengthen palm oil diplomacy in international stage. “This is very important to implement marketing communication strategy to promote Indonesian palm oil, especialaly when we face trade dispute,” Enggartiasto said. In response to the statement, Finance Minister Sri Mulyani Indrawati said that BPDPKS has very important role in developing palm oil industry in the country, from upstream to downstream, including in promoting palm oil to the world. Sri Mulyani also agreed to Enggartiasto’s proposal to use palm oil fund for promotion and diplomacy program. “If possible, the fund can be used to support our attempt to lobby the world,” Sri Mulyani said. Attendees at the seminar included speakers who spoke about developing sustainable palm oil and BPDPKS’s role in it. Deputy of Coordinating Ministry for Economic Affairs of Food and Agriculture Musdhalifah Machmud spoke about BPDPKS’ role in developing sustainable palm oil. The day-long seminar also had the presence of several speakers: Dean Of Vocational School of Bogor Agricultural University Arief Daryanto; Director General of Treasury of Finance Ministry Marwanto Harjowiryono; and a prominent expert on state finances Mulia P. Nasution. Some speakers spoke about establishing Indonesian sustainable palm oil. They were Head of Sub-directorate for Oil Palm within the Ministry of Agriculture Edi Subiyantoro, Managing Director for Trading & Downstream PT Triputra Agro Persada Sutedjo Halim, Chairman of APKASINDO Amin Nugroho, and a economist Fadhil Hasan. ***