VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

President of Indonesia Joko Widodo (left) and some ministers as well as high-ranking officials of state-owned oil company Pertamina attended the launch ceremony of the first use of 30 percent blended biodiesel (B30) program in Jakarta, Monday (Dec 23, 2019). (ANTARA)

President Joko Widodo (Jokowi) launched the 30 percent blended biodiesel (B30) program at a gas station in Jakarta, Monday, while highlighting that the measure may help Indonesia save US$4.8 billion in foreign exchange in 2020.

"I would like to mention today that the B30 program is officially launched, and I am delighted to announce it will save Rp63 trillion (equivalent to US$4.8 billion) of our foreign exchange," Jokowi stated at the launch ceremony at SPBU Pertamina No.31.128.02 gas station, MT Haryono, South Jakarta.

The president had earlier planned to implement the B30 program in 2020, but he expedited the move by the end of this year.

Jokowi expounded that the B30 program could be implemented in the country's capital city since the trial run had begun since November 2019.

Following the use of B30 blended biodiesel, the president expected to launch the use of 40 percent blended biodiesel (B40) in 2020 and fifty-percent blended biodiesel in 2021. "If we succeed to work at our targets, I believe we may further increase the country's foreign exchange," he stated.

The blended biodiesel program was initiated in 2008 as regulated by Energy and Natural Resources Ministerial Decree No. 32 of 2008. The ministry initially targeted to launch the use of 10 percent blended biodiesel in 2015, with the objective of responding to a sharp decline in the CPO price in the global market in the past years.

The Ministry of Energy and Mineral Resources stated in 2019 that the B20 policy, launched last year, has not only reduced the country’s trade deficit but also saved US$1.66 billion (Rp23.6 trillion) of the country’s foreign exchange reserves during the January-July 2019 period. (ANTARA)