Using More FAME, B30 is Expected to Improve Trade Balance
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 055.Pers/04/SJI/2020
Date: 3 February 2020
Using More FAME, B30 is Expected to Improve Trade Balance
By implementing the B30 (a blend of 30 percent biodiesel and Solar diesel oil) policy, Ministry of Energy and Mineral Resources (EMR) targets a higher use of FAME in 2020. This is in line with higher FAME production target in 2020 of 10 million kilo liter (KL).
The information was passed on by Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR, Agung Pribadi. "Last year, as much as 6.26 million kilo liter of B20 was used. This is why we are optimistic this year B30 can exceed the target," said Agung in Jakarta, Monday (3/2).
Over the last two years, FAME production has been on the increase. In fact, the realization of FAME production reached 8.37 million KL, exceeding the target which was set at 7.37 million KL. "We expect the production will be used more by the transportation sector (for B30)," said Agung.
The mandatory B30, continued Agung, has received positive response. Indonesia is, in fact, the first country in the world to implement the program. "This can be the solution to correct the trade balance and to reduce fuel imports, so it offers the potential for saving the foreign exchange," explained Agung.
Back in 2019, the use of B20 could save approximately USD3.35 billion or Rp48.19 trillion of foreign exchange. Meanwhile, in 2020, Ministry of EMR has calculated that a saving of more than USD4.8 billion or Rp63 trillion can be made.
To improve biodiesel quality, the government drives the development of green refineries, for example the Plaju refinery with a capacity of 20 thousand barrels per day. The refinery processes Crude Palm Oil (CPO) by hydro-refining (H2 & catalyst) to produce green diesel, etc. "The completion target is in 2024," said Agung.
Biodiesel Market Price for February
The government has set the Market Index Price (HIP) of Biodiesel for February at Rp9,539 per liter, or picking up by Rp833 per liter from January 2020. This price excludes transportation cost determined in Decision of Minister of EMR Number 148 K/10/DJE/2019.
The biodiesel HIP will be used for the B30 program, and is effective from 1 February 2020. The price value is obtained from the HIP formula = (average CPO price of Kharisma Pemasaran Bersama (KPB) + USD100/ton) x 870 kg/m3 + transportation cost.
The average CPO price of KPB for the period 15 December 2019-14 January 2020 is Rp9,573/kg, up by Rp974/kg from the previous average of Rp8,599/kg.
Meanwhile, the bioethanol HIP for February 2020 is set at Rp10,384 per liter, or down by Rp40 per liter from Rp10,424 per liter in January. The calculation formula is as follows: average price of KPB sugar cane drops for a 3-month period x 4.125 Kg/L + USD0.25/Liter. (IY)
Head of Bureau of Communication, Public Information Services, and Cooperation