ESDM Will Increase the B40 Biodiesel Quota to 15 Million Kilo Liters

The government, through the Ministry of Energy and Mineral Resources (ESDM), will increase the B40 biodiesel quota to 15 million liters next year.

B40 is a mixture of Biofuels (BBN) into Diesel Fuel Oil (BBM) of 40%.

Currently, the process of overhauling or checking the engine to see the results of combustion from fuel that has been mixed with B40 is being carried out.

Before carrying out the implementation, the government, together with related stakeholders, had made technical preparations by carrying out a B40 road test which was launched by the Minister of Energy and Mineral Resources, Arifin Tasrif, in July 2022.

Director of Bioenergy at the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) Edi Wibowo explained that after the inspection of these components is carried out, which is targeted to be completed by the end of December 2022, his party will again calculate the availability of raw materials and then prepare specifications for this B40.

Furthermore, his party will provide recommendations when B40 will be implemented. Therefore, his party still cannot say when the implementation of B40 will be enforced.

However, his party said, if it is implemented next year, then the biodiesel quota in 2023 could increase to 15.03 million kilo liters (kl) from the allocation of 11.02 million kl in 2022. This figure assumes the need for diesel/diesel oil in a year is around 37.5 million kl.

“So regarding the volume of B40 in one year we estimate, we say that the Solar for B30 is one in 2023, our estimate is 37.5 million kl. If 40% of that means for B40 it is around 15.03 million kl,” he said. event ‘Rating and Overhaul of B40 Road Test Vehicle’ at the Lemigas Oil and Gas Testing Center, Jakarta, Monday (21/11/2022).

Edi said that the presence of B40 could save up to Rp. 200 trillion in foreign exchange. This is similar to what happened with the B30 type, which saved up to IDR 66 trillion in foreign exchange in 2021. These savings are due to the use of biodiesel can reduce diesel imports.

“If we don’t import 15.03 million KL of solar oil, the price is only Rp. 13,000 multiplied by 15 (million KL), which is probably around Rp. 200 trillion, if we don’t import diesel oil,” he said.

The B40 road test was carried out by the Lemigas Oil and Gas Testing Center by involving the KEBTKE Survey and Testing Center and the National Research and Innovation Agency (BRIN) through funding from the Oil Palm Plantation Fund Management Agency (BPDPKS) proposed by the Ministry of Energy and Mineral Resources Directorate General EBTKE.