InfoSAWIT, JAKARTA — The Indonesian government is reinforcing its mandatory biodiesel policy through various new programs and initiatives aimed at enhancing the sustainability of biodiesel feedstocks and production. Edi Wibowo, Director of Bioenergy at the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM), revealed that the policy also focuses on expanding biodiesel industry capacity, particularly in central and eastern Indonesia.
As part of its diversification efforts, the government has introduced several strategic measures, including the expansion of the Palm Oil Plantation Revitalization Program (PSR) and the utilization of critical lands or former mining areas for dedicated energy forests as biodiesel feedstock sources. The program also emphasizes the development of sustainability principles in biodiesel production through national standard indicators, namely the Indonesian Bioenergy Sustainable Indicators (IBSI).
According to Edi, the government is preparing to implement a biodiesel blend of B40 and even higher, while maintaining a balance in domestic crude palm oil (CPO) supply, offering adequate incentives, and ensuring infrastructure readiness. “With this implementation, biodiesel production is expected to meet national energy needs while reducing dependency on fossil fuels,” Edi stated at the Palm Oil Conference, as quoted by InfoSAWIT on Monday (11/10/2024).
Boosting HVO Production for Non-PSO Needs
PT Kilang Pertamina Internasional is at the forefront of developing hydrotreated vegetable oil (HVO) or green diesel for non-subsidized purposes. Edi noted that HVO production is being carried out in two phases. The first phase was completed in January 2022, with an HVO production capacity of 143,000 kiloliters per year at a refinery using refined, bleached, and deodorized palm oil (RBDPO) as feedstock.
The second phase is currently under construction at the RU IV Cilacap refinery, with a planned capacity of 348,000 kiloliters per year using a grass-root scheme to process CPO, used cooking oil (UCO), and palm oil mill effluent (POME). This project is expected to be completed by the end of 2028.
“HVO production has already been utilized in various activities, including as fuel for international events such as the Formula E in Jakarta and the G20 Summit in Indonesia, as well as trials of B40 implementation in the mining sector,” Edi said.
However, the development of HVO in Indonesia faces significant challenges, particularly regarding feedstock availability and production costs. Currently, there are no regulations governing the use of UCO as HVO feedstock, and the high cost of raw materials like CPO and RBDPO has led to higher final product prices (D100/HVO) compared to Dexlite or Pertadex.
“The government plans to use HVO as a blend for non-subsidized diesel with a Cetane Number of 51, which will be distributed at gas stations,” Edi added. This initiative is expected to support Indonesia’s green energy transition while tackling economic challenges in renewable energy development. (T2)
