Jakarta, CNBC Indonesia – The government continues to encourage the 40% biodiesel program or B40, precisely in June 2021. This was stated by the Minister of Economy Airlangga Hartarto in the Exclusive Interview program by CNBC Indonesia, Thursday (07/30/2020).
Deputy for the Coordination of Energy, Natural Resources and Environment Management Coordinating Ministry for the Economy, Monty Girianna said the biodiesel program aims to maintain national energy security and reduce fuel imports.
He further said that with this program palm oil from farmers will be absorbed, reduce greenhouse gas emissions, and no less important is reducing the deficit. Running a biodiesel program is not smooth.
The impact of the corona pandemic made the price of diesel fuel go down, so the gap between the price of Crude Palm Oil (CPO) and diesel fuel grew even further. But he believes this program will continue to run with palm oil export levies, especially CPO of US $ 55 per ton.
“If the gap is large, the price of diesel will go down, we will push this program hard. Therefore, it is okay to go with US $ 55 certainty. So that this program will continue and become our obligation to prioritize biodiesel principles and obtain a large enough palm portfolio,” he explained, Thursday (07/30/2020).
Meanwhile, Managing Director of the Palm Oil Plantation Fund Management Agency (BPDPKS) Eddy Abdurrahman said biodiesel was needed in relation to the sustainable oil palm program. Palm oil production continues to increase, if it is not accompanied by absorption, prices will plummet.
“The remaining 60-70% is absorbed by the remaining 30-40% domestically. Demand for palm oil in the country for food and oleochemicals is stagnant. So from 30-40% of the palm products that stay in the country was approximately 50% only “it can be absorbed by food and oleochemicals so that there is still remaining stock that has not been absorbed,” he explained.
This excess supply has caused prices to fall, so that in 2015 the government took the initiative to create demand in the country, namely the biodiesel program.
“This biodiesel program is very strategic in order to support the sustainability of the national oil palm. Imagine if over supply of domestic that is not absorbed through the biodiesel program will cause an over-stock impact, lowering prices, which will continue to have an impact on the principle of farmers’ income,” he said.
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