Jumbo Incentive for Biodiesel Producers

Supported by incentives from the government, the program's production volume, which is blamed for the high price of cooking oil, continues to increase.

This year, the government targets 10.15 million kiloliters of biodiesel for the domestic market, up from last year's 9.74 million kiloliters. The biodiesel will be supplied by 22 biofuel business entities (BU BBN). The Director General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, called them the selected companies. "This BBN BU, in addition to having a biodiesel business license, must submit an application by attaching the requirements," he said yesterday. Several companies, such as PT Darmex Biofuels, PT Musim Mas, PT Wilmar Bioenergi Indonesia, PT Wilmar Nabati Indonesia, and PT Pelita Agung Agrindustri, have consistently supplied biodiesel since this program was first held in 2016. Only two new players appear on the BU list. This year's biofuels, namely PT Sari Dumai Oleo and PT Jhonlin Agro Raya, will start supplying biodiesel in 2021. The producers are owned by business groups that own oil palm plantations. Most of them came from the Wilmar Group, which has four subsidiaries supplying B30 this year. Meanwhile, Musim Mas and Apical Groups each have three subsidiaries. In total, throughout 2021, BU BBN biodiesel will receive incentives of Rp 51.86 trillion. This condition raises the concern of the Corruption Eradication Commission. In fact, the incentives for biodiesel development come from export levies collected by the Palm Oil Plantation Fund Management Agency (BPDPKS).

|•SOURCE•| Articles :TEMPO | Image :ESDM |

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