Coordinating Minister Of Economy Airlangga Ensures B40 To Be Implemented Starting 1st January 2025

Coordinating Minister Of Economy Airlangga Ensures B40 To Be Implemented Starting 1st January 2025

Tuesday, 03 Dec 2024

Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that the mandatory biodiesel program at 40 percent (B40) will be implemented starting January 1, 2025. He stated that the government has reached an agreement to increase the national palm oil production volume to meet the B40 quota. "For biodiesel B40, we are committed to commencing on January 1, and we have decided to increase the volume for the quota," Airlangga remarked during a press conference at the 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) in Jakarta on Friday.

Airlangga noted that the Palm Oil Plantation Fund Management Agency (BPDPKS) will be able to finance the price difference between crude palm oil (CPO) and fossil fuels. He explained that the implementation of biodiesel could significantly reduce carbon dioxide emissions.

"In the B35 program, we save approximately 32 million tons of carbon dioxide, and for B40, it exceeds 40 million tons," Airlangga elaborated. At the same event, Malaysia's Minister of Plantation and Commodities, YB Datuk Seri Johari Abdul Ghani, expressed appreciation for Indonesia's B40 program, highlighting its potential contribution to reducing global carbon emissions.

He assessed that Crude Palm Oil (CPO) will always be a necessary commodity globally. Therefore, Indonesia and Malaysia, as the primary producers of CPO, play a crucial role in ensuring a more sustainable palm oil industry. "The production of biodiesel must be embraced worldwide through palm oil, as it has significantly reduced carbon emissions in the energy sector," he stated. Previously, the President Director of BPDPKS, Eddy Abdurachman, indicated that the mandatory biodiesel program could help stabilize palm oil prices while also supporting the government's downstream initiatives.

According to Eddy, this initiative aims to create a domestic market for CPO. The implementation of B40 is expected to significantly increase the demand for CPO as a feedstock for fuel. "Given the substantial absorption of CPO and its derivative products for biodiesel feedstock, this can serve as a tool or instrument to maintain the stability of CPO prices, particularly within the domestic market," Eddy remarked on Thursday, November 21, 2024. (deriz@insightinnews.com)

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