Jakarta, CNBC Indonesia – The 30% biodiesel (B30) program is currently underway, and is targeted to be increased to 40% (B40) by the middle of next year. However, the biodiesel program has received criticism from the President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama alias Ahok.
He said, palm oil (Crude Palm Oil/ CPO) is a commodity driving surplus through exports. In addition, he continued, in carrying out this biodiesel program, regulatory flexibility is needed.
“If we see, one of the surpluses in exports is the CPO commodity, and the biodiesel program requires regulatory flexibility,” Ahok said at the event “2020 International Convention on Indonesian Upstream Oil & Gas“, Wednesday (02/12/2020).
When CPO prices are higher than crude oil (crude), then according to him, CPO is better for export. If when the price of palm oil is higher than the price of crude oil, according to him this will have an impact on increasing the cost of processing biodiesel.
As is known, this biodiesel program is a mixture of palm oil derivatives or Fatty Acid Methyl Esters (FAME) with a certain percentage with diesel made from crude oil. If B30, then this means that the FAME mixture content is as much as 30% of every one liter of diesel.
“It should be when the CPO price is higher than that crude (crude oil), would be better exported. CPO is of no use to be produced into FAME, because very high cost, “he said.
Previously, Deputy CEO of PT Pertamina International Refinery, Budi Santoso Syarif, said that the B40 program would be carried out by mixing B30 plus diesel which is processed at the oil refinery directly from palm raw materials, not crude oil (D100) by 10%.
He said, with the progress of this biodiesel project, this is an effort to maintain energy security and reduce the current account deficit. Then, on a micro level, the price for palm oil will stabilize.
“And also conveyed a levy of US $ 55 per tonne. This program will continue. Prior to 2015, it is aimed at oleochemicals, but in the future, more on biodiesel, D100, can prosper 16 million farmers,” he said.
(wia)
– .
