The allocated funds are estimated to reach Rp 5.7 trillion. Managing Director of BPDPKS Dono Boestami said that the financing agreement represents the government’s commitment to support the sustainable palm oil industry while also encouraging diversification in the energy sector. The agreement was signed between BPDPKS and 20 corporations that have been tasked with providing biodiesel.
“We’re pleased to announce that the financing agreement between BPDPKS and biodiesel producers has been signed,” Boestami said in an official statement on Friday (24/11).
The funds will be used to purchase biodiesel between November 2017 and April 2018 with an estimated volume of 1.4 million kiloliters (KL). The biodiesel will be used to supply the needs of PT Pertamina (Persero) and PT AKR Corporindo. The respective volumes are 1.38 million KL and 24,000 KL and were set based on projections for solar energy needs during that period. The projections are for the transportation and electricity sectors.
Dono explained that the biodiesel incentive funds BPDPKS provided between January and October 2017 amounted to Rp 4,054 per liter. Assuming the same amount of incentive is provided between November 2017 and April 2018, the total funds needed to finance biodiesel purchases are estimated to reach Rp 5.7 trillion.
According to Decree No. 3756/K/10/MEM/2017 issued by the Minister of Energy and Mineral Resources, 20 producers or corporations are responsible for distributing biodiesel. Funds from BPDPKS will be disbursed to these 20 corporations, namely: PT Batara Elok Semesta Terpadu, PT Bayas Biofuels, PT Cemerlang Energi Perkasa. PT Ciliandra Perkasa, PT Dabi Biotuels, PT Darmex Biofuels, PT Energi Baharu Lestari, PT Intibenua Perkasatama, PT Multi Nabati Sulawesi, PT Pelita Agung Agriindustri. PT Permata Hiiau Palm Oleo, PT Sukajadi Sawit Mekar, PT Kutai Refinery Nusantara, PT LDC Indonesia, PT Musim Mas, PT Sinarmas Bio Energy, PT SMART Tbk, PT Tunas Baru Lampung Tbk, PT Wilmar Bioenergi Indonesia, and PT Wilmar Nabati Indonesia.
Director of BPDPKS Fund Disbursement Edi Wibowo said that the amount of biodiesel incentives granted increases every year. In 2016, total biodiesel distributed reached 2.49 million KL or 98% of the target of 2.53 million KL. Funds that were disbursed that year totaled Rp 8.18 trillion. In 2017, biodiesel distribution up until November had reached 1.79 million KL or 21% of the target of 2.53 million KL. The funds that had been disbursed at that time amounted to Rp 8.6 trillion.
“The fund from the palm oil sector used to support the mandatory biodiesel program reached Rp 11 trillion by the end of 2017, including the funds carried over from the 2016 distribution,” he said.
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