Govt to Amend Regulation on Oil Palm Fund to Push B20

The government is planning to revise presidential regulation on collection and disbursement of oil palm fund in a bid to expand the use of biodiesel with 20% biofuel (B20) on non-public service obligation (PSO) transportation. “The government will revise presidential regulation on collection and disbursement of oil palm fund that mandating B20 only to public service obligation (PSO) transportation,” said Industry Minister Airlangga Hartarto on a press conference after a meeting in presidential office, Friday (20/7/2018). According to him, the use of B20 is only mandated to subsidised transportation (PSO), such as trains.

Govt to Amend Regulation on Oil Palm Fund to Push B20
The government is planning to revise presidential regulation on collection and disbursement of oil palm fund in a bid to expand the use of biodiesel with 20% biofuel (B20) on non-public service obligation (PSO) transportation. “The government will revise presidential regulation on collection and disbursement of oil palm fund that mandating B20 only to public service obligation (PSO) transportation,” said Industry Minister Airlangga Hartarto on a press conference after a meeting in presidential office, Friday (20/7/2018). According to him, the use of B20 is only mandated to subsidised transportation (PSO), such as trains. The revised regulation will mandate B20 to non-PSO transportation, such as heavy equipment in mining sector, tractors, excavator, and also expanded to private vehicles. Airlangga said current non-subsidized biodiesel supply reached 16 million tons, more than the subsidized. Mandating B20 to non-PSO will require additional biofuel production of 3,2 million tons a year. “All technical terms, including time schedule will be discussed later.” About the raw material, Airlangga said that crude palm oil (CPO) supply is sufficient. National installed biodiesel production capacity reached 38 million tons in 2017. About 7,21 million tons of them is exported, while for domestic consumption reached 8,86 million tons. ***