Government claimed that it can save the cost of importing diesel fuel around Rp70 trillion by implementing 30% biodiesel (B30) policy. The Ministry of Energy & Minerals Resources (ESDM) has last week launched the program to improve palm oil consumption, slash fuel imports, and narrow a yawning current account gap.
By implemented B20, during January – May, the ministry reported the biodiesel consumption recorded at 2.46 million kiloliters and will improve with B30 use. On the other hand, diesel imports were recorded as one of the causes of the trade balance deficit.
In April, the oil and gas trade balance deficit reached US$1.5 billion. That number increased by US$1.1 billion compared to the previous month of US$400 million. Indonesia currently imports around 400,000 barrels per day of crude oil and a roughly similar amount of refined products, which makes Southeast Asia’s largest economy vulnerable to the sort of increases in global crude prices seen over the past year.