BPDPKS Urges Stakeholders to Meet Challenges in Biodiesel Mandatory Program

NUSA DUA—President Director of the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS) Dono Boestami urged palm oil stakeholders to take further action to face challenges in use of renewable energy such as biodiesel.

He said, mandatory use of biodiesel in Indonesia was a must, not a choice. “We are serious about this program. We can’t wait anymore,” Dono said as he spoke in the 15th Indonesian Palm Oil Conference in Nusa Dua, Bali, Friday (1/11/2019).

Yet enormous challenges remain, both in using B20 or B30 by 2020. One of the challenges Indonesia has to face is how to maintain the good quality of the biodiesel, particularly in the sense of blending process. “It is deemed necessary to improve the quality of biodiesel in the blending process,” Dono added.

The others challenges are related to logistic and infrastructure since biodiesel needs a good care. Therefore, storage facilities must be designed to deal with certain condition. In this case, it needs more logistic and blending facilities.

Another challenge is that consumers need to be ready for B30. “It needs support from distributors as well as incentives for consumers so that they are willing to use biodiesel.”

Stakeholders are also vital since some of them are not ready to accept the development and adoption of mandatory biodiesel program. For that reason, it is necessary to introduce biodiesel and education campaigns to highlight the positive impact of biodiesel as well as to tell the public that renewable transport fuel obligation is a must.

Speaking at the same session, Paulus Tjakrawan, Chairman of Associaiton of the Indonesian Biodiesel Producers Association (Aprobi) said that biodiesel producers were facing challenges related to pricing policy. “Fortunately, Indonesia has BPDPKS that provides full support to implement mandatory use of biodiesel,” Paulus said.

From external side, trade barriers are still the biggest challenges facing biodiesel producers. European Union has adopted RED II while the US has adopted RFS 2 (Renewable Fuel Standard). “Not to mention tariff barriers like the EU that has imposed countervailing duties on imports of biodiesel from Indonesia,” Paulus added.

Dono and Paulus agreed those challenges must be overcome in trying to make a success of mandatory use of biodiesel in Indonesia.  ***

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