Biodiesel firms set to meet demand
BIODIESEL companies in Indonesia have confirmed that they are ready to meet the recently established quota for biodiesel as part of the government’s efforts to expand the mandatory use of B20 fuel starting in September.
“There’s absolutely no problem. The fatty acid metyl ester [FAME] industry doesn’t take any issue whatsoever,” the general director of the Indonesian Biofuel Producers Association ( Aprobi), MP Tumanggor, was quoted by kontan.co.id as saying.
Previously, the government announced that biofuel producers would have to supply approximately 940,000 kilolitres of the commodity from September to December.
Biofuel producers would be fined 6,000 rupiah per litre should they fail to meet the supply deadline, Tumanggor added.
In accordance with the Energy and Mineral Resources’ Ministerial Decree No. 14/2018 on biodiesel supply and use financed by the Indonesian Oil Palm Estate Fund ( BPDP- KS) issued on August 24, oil and gas companies that fail to produce B20 will risk losing their business permits and paying a fine.
According to Tumanggor, biofuel companies will conduct regular checks to detect human errors that may potentially delay deliveries.
Aprobi members have also expressed their readiness to meet the government’s production capacity, he added.
Biodiesel companies have produced 12 million to 14 million kilolitres of biodiesel. Of the figure, 2 million kilolitres have already been delivered for September’s B20 policy.