Govt to Cut Down on FAME Distribution Point

In trying to optimize implementation of expanded B20 mandatory program, the government will simplify FAME distribution supply chain by reducing the number of fuel terminals into several point of distribution. FAME (fatty acid methyl esters) is raw material to be mixed with diesel fuel to produce B20. “We were demanded to evaluate the plan and the new scheme will be introduced 1 December 2018. Currently, we distribute FAME to many fuel terminals all across the country. From now on, we concentrate on only several terminals,” Rida Mulyana, Director of New Renewable Energy and Energy Conservation at the Energy and Mineral Resources Ministry, said in Ministry of Coordinating Economic, (18/10/2018), as quoted by Bisnis.com. The government has admitted that several issues are hampering the distribution and logistic of B20. However, since the expanded B20 mandatory program launched on 1 September 2018, the progress is even better. Reducing the number of distribution points was proposed by PT Pertamina (persero). Pertamina proposed to the government to distribute FAME to 14 terminals rather than to 112 terminals. Since then, the FAME is blended with diesel fuel only in the 14 terminals. According to Rida, the proposal is yet to be executed since Pertamina has not make any decision yet on which terminals will receive FAME. Gandhi Sriwidodo, Pertamina’s Director of Supply Chain and Infrastructure said that there has been a delay in distributing the FAME to some fuel terminals in Tanjung Uban, Bau-Bau, Wayame, Manggis, Tanjung Wang, Kupang, Makassar, Bitung, STS Balikpapan and STS Kotabaru. ***