Pertamina Refinery Starts B40 Fuel Production, Supports Emission Reduction

KatadataOTO – KPI (Pertamina International Refinery) has officially started producing fuel (Fuel Oil) B40 to support the government's program of implementing the use of diesel fuel with a 40 percent mixture of palm oil-based biodiesel.

The mandatory B40 program is regulated in the Decree of the Minister of ESDM (Energy and Mineral Resources) No. 341.K/EK.01/MEM.E/2024.

The policy regulates the use of biodiesel-type biofuel as a mixture for diesel fuel, with financing from the palm oil plantation fund management agency at 40 percent.

It should be noted that B40 is a mixture of 40 percent CPO or palm oil-based biofuel, namely FAME (Fatty Acid Methyl Esters), and 60 percent diesel fuel.

Photo : Antara

“The production of B40 biosolar will certainly be KPI's contribution to achieving Net Zero Emission by 2060 or sooner, supporting the Sustainable Development Goals to ensure access to affordable energy, and in the implementation of ESG,” said Taufik Aditiyawarman, President Director of KPI, quoted from an official statement on Tuesday (14/1).

The government itself has set a target of achieving zero emissions by 2060. Then there is a plan to increase to B40 in 2026.

Two refineries are being utilized, namely the Plaju Refinery in South Sumatra and the Kasim Refinery in Southwest Papua, with production targets of 119,240 KL and 15,898 KL per month, respectively.

In the long term, the use of B40 fuel is claimed to be able to save up to IDR 147.5 trillion in import costs, thus saving foreign exchange.

Previously, with the implementation of B35, Indonesia successfully saved up to IDR 122.98 trillion by not importing diesel fuel. 

Challenges of B40 Implementation

In addition, on a separate occasion, Gaikindo (Association of Indonesian Automotive Industries) emphasized that besides preparations from vehicle manufacturers, the implementation of this fuel needs to be evenly distributed throughout Indonesia.

Photo : TAM

“That's why we urge Pertamina to handle not only the supply but also the distribution,” said Jongkie Sugiarto, First Chairman of Gaikindo, at ICE BSD some time ago.

The DPR (House of Representatives) expressed the same sentiment. The implementation of B40 needs to be balanced with the readiness of distribution and vehicle technology.

“Incompatible vehicles can experience engine damage; this must be prevented early on,” said Jalal Abdul Nasir, a member of Commission XII of the DPR RI.