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NGOPINI SAWIT #4:

Biodiesel Mandatory, Challenges and Opportunities

The government of Indonesia has disbursed a number of funds from the state budget to support Badan Pengelola Dana Perkebunan - Kelapa Sawit (BPDP-KS) in funding the mandatory biodiesel program through subsidies. Within the framework of the National Economic Recovery (Pemulihan Ekonomi Nasional/PEN), the government provided IDR 2.78 trillion to cover the current poor financial position of the BPDP-KS. Reflecting on energy subsidies a few years ago, government action is risky because the price of biodiesel oil is very vulnerable to the effects of global conditions. With the pandemic situation that has not yet subsided and the government's ambition to increase the biodiesel mixture, the government needs more appropriate steps. On the other hand, the sustainability of the program is needed to increase energy security and keep domestic demand stable.



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WHO WE ARE

AURIGA or Auriga Nusantara Foundation is a non-governmental organization engaged in efforts to preserve natural resources and the environment to improve the quality of human life. To achieve our goals, we continue to conduct investigative research, encourage policy changes to better manage natural resources and the environment, and advocate through legal connections. Our organization is open to anyone (and anywhere) who has the same ideas and visions as us.