Government Urged to Prepare Policy for Transition to Ethanol Fuel

KatadataOTO – The implementation of Fuel Oil (BBM) with a 10 percent ethanol blend, or E10, has sparked debate among various circles.

Although the plan to implement E10 fuel is not new, the discourse was suddenly revived not long after several private fuel companies canceled using Pertamina's base fuel.

The reason is that the base fuel supplied by Pertamina contains ethanol and does not match the composition set by private brands like Shell and Vivo.

Fuel stocks for Shell, Vivo, and BP-AKR are empty for an indefinite period due to import quotas being exhausted and a single-source supply from Pertamina being enforced.

Photo : Courtesy

Observing this, analysts believe the government needs to take measured steps so that the implementation of E10 fuel does not negatively impact many parties, both companies and consumers.

“From a business perspective, the rejection by private gas stations is clearly a logical step for them to maintain global compliance and their stricter internal SOPs,” said Yannes Martinus Pasaribu, an observer and academic from the Bandung Institute of Technology (ITB), to KatadataOTO some time ago.

If this is allowed to continue, Yannes believes there is a possibility that private fuel companies will eventually leave Indonesia.

This could then trigger a national supply shortage of the fuel desired by the public, as well as layoffs (PHK) due to fuel scarcity.

Ideally, according to Yannes, there needs to be a transition and clear communication from Pertamina to all stakeholders.

“The government should conduct consumer education programs to support green biofuels, as well as establish regulations that facilitate the harmonization of national and international standards,” said Yannes.

Education, transitional regulations, and the alignment of fuel standards with private companies can ultimately help optimize the implementation of E10 fuel.

Photo : KatadataOTO

This is because the public can better understand ethanol blending in fuel, and private gas station investments will not be disrupted, thus offering many other benefits such as the creation of new jobs.

It should be noted that infrastructure preparation also needs attention. Fuel with a 10 percent ethanol blend must be stored in special tanks containing antioxidant stabilizers.

Car manufacturers also need to be given time to prepare and adjust their vehicles to be compatible with using 10 percent ethanol fuel.