Biodiesel to be Available as from May 20
Wednesday, 17 May, 2006 | 19:11 WIB

Tempo Interactive, Jakarta: PT Pertamina, the state-owned oil & gas company, is to start selling five percent Biodiesel—to be called as Biosolar—as from May 20.

Biodiesel is made up of five percent palm oil and 95 percent automotive diesel.

To start with, this new product will be sold at four petrol stations in Jakarta, on those on Jl. Industri, Jl. Simatupang, Jl. Tendean and Jl. Minangkabau.

Pertamina's Deputy Director of Marketing and Trade, Haung Budya, said the sale price was be the same as that of subsidized automotive diesel oil, Rp4,300 per liter.

According to Budya, by the end of the year, Biosolar will be available at 10 petrol stations with anticipated increased sales of 100,000 liters per day.

Next year sales will be expanded to several major cities, such as Surabaya and Medan, as well as on Bali.

Pertamina’s target market, said Budya, is the transportation sector due to its current high fuel oil consumption of about 12 million kiloliters per year.

“The biodiesel fuel is made of palm oil which we take from the national industry,” he said yesterday (16/5).

To safeguard the supply of Biodiesel, Pertamina will cooperate with the palm plantation industry, including PT Perkebunan Nusantara.

Pertamina also plans to build a factory that will manufacture Biodiesel.

During the three to four years, fuel oil consumption in the transportation sector is estimated to increase to 15 million kiloliters.

Pertamina is targeting that half the sector being able to use Biosolar.

“Theoretically, with five percent Biodiesel usage, economies of (subsidized) automotive diesel oil will reach 400,000 kiloliters per year,” said Budya.

Pertamina's Fuel Division Head, Djaelani Sutomo, said that in spite of the high Biosolar sales price, Pertamina will incur losses because the actual price is Rp4,600 per liter.

“But the loss is a little because the palm oil used is only five percent,” he said.

However, this loss can be covered because Pertamina is currently trying to obtain replacement funds from developed countries.

In line with the Kyoto Protocol, said Djaelani, countries using environmental-friendly fuels will obtain Rp200 per liter.

Muhamad Fasabeni
_________________________ Indonesian Business and Investment News Aggregator