Img source : thestar.com.my
The Palm Oil Plantation Fund Management Agency (BPDPKS) believes that the government's mandatory B20 biodiesel program is a solution to the excess domestic oil supply.
At present, the supply of palm oil is excessive, so it needs greater absorption in the market. BPDPKS also ensures to prepare funds in order to expand the mandatory segment of B20 biodiesel.
"Amid the current downward trend in palm oil prices, we have prepared funds for the expansion of the B20 biodiesel mandatory segment which is expected to be able to absorb excess supply of palm oil products on the market," BPDPKS President Director Dono Boestami said at the Indonesian Palm National Seminar at Borobudur Hotel, Monday ( 8/20/2018).
In the near future, the government will implement a policy of expanding fuel use with a mixture of 20 percent biodiesel or B20, both for the use of Public Service Obligation (PSO) or non-PSO.
The B20 policy aims to save the country's foreign exchange by reducing dependence on imported fuels that have been used in daily activities.
When viewed in the previous period, throughout 2017 BPDPKS has provided incentives for the distribution of 2.3 million kiloliters of biodiesel. Meanwhile, up to the first semester of 2018, the incentive already given was for the distribution of 1.1 million kiloliters of biodiesel.
"The mandatory program has two benefits, supporting the policy of new and renewable energy through an energy mix that encourages the creation of national energy security and encourages the stabilization of the price of CPO (Crude Palm Oil) through the influence of demand and supply control of oil and its derivatives," said Dono.
Excessive supply of palm oil is partly due to a decrease in CPO exports. Exports declined due to the high global market tension and various policies from certain countries that still consider palm oil to have a negative impact on the environment so that the commodity has not been well received.
This post was made from https://ulogs.org