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The Indonesian Express
business
Dok/Kementerian Pertanian
Mentan: The Rollout Of B50 And Its Impact On National Energy Independence
Monday, 19 Aug 2024
Agriculture Minister Andi Amran Sulaiman kicked off the soft launch of B50 Biodiesel in South Kalimantan, marking a significant step towards Indonesia's energy independence, a major goal for the next 5-10 years. "This is a big idea, with the current and future presidents aiming for Indonesia to be a food and energy powerhouse. These two strengths can shake the world," he said at the PT. Jhonlin Agro Raya Biodiesel Plant in Batulicin, Tanah Bumbu Regency, South Kalimantan, on Sunday (August 18, 2024). Looking ahead, there's a strong belief that the demand for palm oil-based biodiesel will soar, especially for domestic use to enhance national energy security. According to the Directorate General of Plantation Statistics for 2023, palm oil covers an area of 16.8 million hectares with a production of 46.9 million tons. Amran noted that renewable energy initiatives have been in place since President Joko Widodo (Jokowi) introduced B15 in 2015, followed by B20 in 2019, B30 in 2022, and now B35, which has been in effect since 2023. The national energy program aims to implement B50 biodiesel and E10 bioethanol, with hopes of increasing the use of biofuels nationwide, thereby reducing crude oil and fuel imports. “Today’s soft launch of B50 is crucial and strategic. It can serve as an economic political tool globally. I repeat, this is our strength. The current global crises are food and energy, and the solution lies in Indonesia,” said Minister Amran. He shared that the government began utilizing palm oil for biodiesel back in 2019, developing a prototype made from 100% palm oil (B100). He is confident that similar biodiesel prototypes and tests have been conducted by various ministries and biodiesel industries, even though they are still limited in meeting self-consumption needs. Right now, we're tasked with ensuring the government's readiness for the B50 biodiesel program. It's not just about having enough CPO supply; we're working closely with the Ministry of Energy and Mineral Resources and other relevant agencies to carefully prepare and identify everything needed. This includes technical, economic, and fiscal studies, infrastructure, the transition to B50, quality standards, business assessments, legal aspects, and even practical tests and road trials to make the B50 biodiesel implementation a reality, he explained. Minister Amran added that Indonesia has a strong food supply and biodiesel potential. He reminded everyone that Indonesia controls 58% of the world's CPO, so we need to manage this potential wisely. The B50 initiative will have economic and political impacts, especially since countries in Europe need about 2.6 million KL annually. "So, our clear goal is to get ready for the B50 biodiesel implementation. This soft launch will mark a significant moment in history as we lead the way for B50 in our country," he emphasized. For your information, the government is continuously working towards achieving energy independence, one of which is speeding up the development of B50 biodiesel. Biodiesel is a reliable alternative to fossil fuels, which are becoming scarce, and it plays a strategic role with positive effects, especially on the environment. However, the Indonesian palm oil industry still faces various challenges in 2024. On the global economic front, uncertainty looms over growth, particularly in developed countries. The USA is still grappling with inflation above target, while China, one of the largest palm oil consumers, is dealing with economic struggles post-COVID-19. Europe is also facing a weakened economy with rising fiscal deficits.
