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SOEs Minister urges Indonesians to reduce reliance on fuel oil
calendar08-09-2022 | linkAntara News | Share This Post:

07/09/2022 (Antara News), Jakarta - Minister of State-Owned Enterprises (SOEs) Erick Thohir during an interview here on Wednesday, urged Indonesians to reduce their reliance on fuel oil and begin to shift to alternative energy.

Indonesia is no longer a part of the Organization of the Petroleum Exporting Countries (OPEC) since it started importing fuel oil in 2003. Hence, the subsidy fuel oil quota allocation that the government provides every year affects state budget stability.

Moreover, Indonesia's population has increased from several hundred million to 273 million. A larger population means additional cars, and thereby, increased usage of fuel oil, he highlighted.

Further, the petrochemical industry requires crude oil to produce goods such as plastic and clothes.

"With this circumstances, like it or not, we have to start to be efficient in imports and reduce our dependency on fuel oil," Thohir said after visiting the Pertamina Integrated Enterprise Data and Command Center (PIEDCC).

The blueprint that the government has promoted as part of the program for fossil to alternative energy-based transition includes increasing the utilization of electric motorcycles, cars, and induction cookers.

Moreover, the government is also encouraging solutions wherein fuel oil can be mixed with materials from palm oil to make biodiesel products.

Indonesia is mixing diesel and palm oil in a proportion of 70:30 to make B30 fuel, which has gradually been upgraded to B40 containing 60 percent diesel and 40 percent palm oil.

The government is also seeking to produce bioethanol from sugar. Thailand has managed to produce bioethanol up to 12 percent, India 10 percent, and Brazil 67 percent, Thohir informed.

Bioethanol fuel with research octane number (RON) up to 130 is good for the environment since it has low carbon emission.

"This means that sugar can also be mixed like palm oil. This is the alternative that we are pushing," the minister explained.

Currently, Indonesia has a new renewable energy mix target of 23 percent in 2025. The program aligns with the Indonesian government's commitment to building a cleaner and sustainable energy system by reducing emissions by up to 29 percent by 2030.