Biodiesel firms set to meet de­mand

The Nation - - AEC -

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 kon­ 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.

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