BPDPKS Reaffirms Commitmment to Keep Biodiesel at Affordable Price
JAKARTA—The Indonesia Oil Fund Plantations Management Agency (BPDPKS) reaffirmed its commitment to keep biodiesel at affordable price, seeing that BPDPKS is obliged to pay the negative price gap between diesel fuel and biodiesel and therefore people can afford the biodiesel.
“BPDPKS is obliged to pay the price gap between biodiesel and diesel fuel,” BPDPKS President Director Eddy Abdurrachman said at Exclusive Interview, a tv program of CNBC Indonesia raising the topic “Biodiesel after Covid-19 pandemic, continue or stop?" in Jakarta, Thursday, (30/7/2020).
Currently, biodiesel prices remain so high that people couldn’t afford it. Therefore, BPDPKS is obliged to solve that problem. Using palm oil fund to pay the price gap is aimed at assuring the production of palm oil, which is the raw material for biodiesel, continues to run. Hence, biodiesel production will continue to run and bring the product directly to customers.
Eddy added that funds collected by BPDPKS from palm oil export levies are not used only for biodiesel incentive, but also for various purposes to establish sustainable palm oil in the country.
"We collect the funds from palm oil export levies. We manage and then distribute them for various purposes including to improve farmers’ knowledge and skills, to carry out research in an effort to develop palm oil industry, as well as for promotion program," Eddy said. ** (Source: CNBC Indonesia)