Benefit From Biodiesel Mandatory

Implementation of a policy concerning the mandatory use of biodiesel from 2014 to 2017 in Indonesia led to accumulated savings of diesel fuel, reduced CO2 emissions and more foreign exchange from diesel imports (Figure). Cumulatively, 7.7 million tons of diesel fuel imports and foreign exchange from diesel imports worth Rp. 38.8 trillion were saved. It also reduced CO2 emissions by 11.6 million tons.

Figure:    Accumulated saving of diesel imports, reductions of CO2 emissions and improved foreign exchange based on the implementation of mandatory biodiesel in Indonesia (Economic Ministry, PASPI data, 2018)

Thus, the policy for mandatory biodiesel provides double benefits for Indonesia, namely to build national energy sovereignty through the efficient use of imported diesel and to earn foreign exchange from imported diesel. In addition, the policy reduces national CO2 emissions.

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