19 Apr 2016
Managing Director of the Plantation Fund Management Agency (BPDP), Bayu Krisnamurthi, mentioned that the sales of Pertamina's solar oil have decreased up to 15% within a two-month period.
"Pertamina reported that the demand for January and February solar oil has decreased by 15%. The demand for solar oil is declining and the demand for biodiesel is also decreasing," explained Bayu at his office in Central Jakarta on Monday (4/18/2016).
Despite the decline in biodiesel sales, Pertamina is currently penetrating a new market segment, which is PLN. PLN, which used to purchase solar oil, has now switched to biodiesel for its electrical generators.
"In the future contracts, the calculation of the decline in solar oil will be balanced out by the new market. PLN is currently facing a dilemma because biodiesel is more expensive than solar oil," said Bayu.
PLN purchases its biodiesel from Pertamina at the same price as solar oil. This is a mandate from Presidential Regulation No. 24 of 2016.
With this shift, the Plantation Fund Management Agency (BPDP) is required to cover the price difference from its palm oil fund. Stated differently, the agency must provide subsidies.
"So, when Pertamina sells to PLN, they will sell using the price of solar oil. Thus, Pertamina also purchases from BBM producers at the price of solar oil. The BBM company collects the price difference from BPDP," explained Bayu.
At the very least, BPDP is required to cover the price difference of biodiesel with Pertamina at a rate of nearly Rp 5,000 per liter.
"The market price for biodiesel is Rp 8,000. The price of solar oil refers to the average price from the previous three months. Three months ago, the price for solar oil was low, so it is at around Rp 3,000. So, the subsidy is Rp 5,000, which is roughly around Rp 4,700 or Rp 4,600, approaching Rp 5,000," concluded Bayu.(ang/ang)
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