Indonesia saves billions by mixing biofuel with diesel
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Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation at Indonesia’s Ministry, told lawmakers that a new energy policy is strengthening the country’s finances and increasing its energy independence.
Indonesia decreased its diesel imports by half, from 18 million kiloliters, after implementing a program to blend biodiesel with diesel fuel. This shift has increased the volume of vegetable oil production to nearly half the country’s crude oil output, reaching 300,000 barrels per day.
The B50 program, as it is known, is projected to deliver additional benefits beyond financial savings. The Ministry estimates the initiative will reduce greenhouse gas emissions by 44.46 million tons and create jobs for 2.1 million people by 2026. Pertamina Patra Niaga, the state-owned fuel retailer, reported that 94 percent of the country’s 6,412 fuel stations are now distributing the B50 biodiesel blend. Implementation of the program is widespread throughout Indonesia, with most regions achieving over 90 percent market penetration.
The Maluku and Papua region, however, has reached 65 percent implementation as local depots finish selling remaining supplies of the previous B40 blend. The government expects these stations will soon begin distributing B50 as well.
