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Government to increase biodiesel mix to 25%

Government to increase biodiesel mix to 25%

The government is planning to issue a regulation on the production of 25-percent biodiesel ( B25 ) early next year. Once issued, the policy will replace the current regulation on 20-percent biodiesel ( B20 ) production.

The 5-percent increase in biodiesel is expected to save US$1 billion in oil imports a year, in addition to supporting clean energy.

Energy and Mineral Resources Minister Ignasius Jonan said his office was in the process of drafting the regulation and dealing with biodiesel mix technicalities.

With the B25 regulation, the ratio of biodiesel to petroleum diesel will be 25 percent to 75 percent.

“We are currently discussing the regulation and the technicalities. This is aimed to make Indonesia [adopt] clean energy,” Jonan told The Jakarta Post in Helsinki on Tuesday during a visit to Europe.

Jonan said given the current oil price, a five-percent increase in palm oil-based biodiesel in the diesel mix would cut the state’s expenditure by up to $1 billion a year from total oil imports.

To support the new regulation, Jonan called on biodiesel makers to encourage diesel-engine manufacturers to support the policy. He said the use of biodiesel, which had been implemented in railway engines and heavy machinery in the mining industry, could take place due to support from engine manufacturers.

“If they give their support technically, we can immediately run the policy,” said Jonan.

The minister said the government alone could not enforce the B25 regulation if engine manufacturers in the country did not make adjustments to their products in line with the policy.

Therefore, he suggested that biodiesel producers immediately hold a meeting with diesel-engine manufacturers to come to an agreement over the B25 regulation.