Govt Serious About Implementing B20 Mandatory

President Director of The Indonesian Oil Palm Estate Fund (BPDPKS) Dono Boestami said that the government is serious about making it mandatory for biodiesel to have a bio-content of 20 percent this year. The government is mandating that all diesel consumers, including in Public Service Obligation (PSO) sector and non-PSO, use biodiesel B20. One of their serious attempt is shown on recent enacted regulations that lay down rules on the exercise of many aspects, including sanctions threat in order to make businesses obey the policy. “The sanction is various from a fine of Rp6.000 per liter to revocation of permits,” Dono said at the seminar ”Investment Breakthrough to Achieve Renewable Energy” in The 7th IndoEBTKE ConEx 2018 di Balai Kartini, Jakarta (29/8/2018). He meanwhile remarked that BPDPKS has made commitment to support the policy, including to provide finance support. In that case, the biggest challenge is not about money anymore since the regulations have specified that BPDPKS is mandated to collect, manage, and disburse palm oil fund, including to support biodiesel development. In 2018, until June BPDPKS has disbursed Rp3,57 trillion, while in 2017 the total of disbursed fund recorded at Rp10,31 trillion. “Money is not an issue,” Dono said. The government’s policy to expand B20 mandatory has also other target to reach, including to save country’s foreign exchange reserves and to stabilize the current account deficit. It is estimated this will save foreign exchange reserves around $5,5 billion per year or US$21 million per day.  “The plan is to cut fuel imports that is currently the biggest imported commodity in Indonesia,” Dono said. ***