JAKARTA, Aug. 12 (Xinhua) -- Indonesian President Joko Widodo said on Monday that he wanted biodiesel with a higher bio-content of 30 percent known as B30, to put in use by January next year to drift down oil import and ratchet up palm oil consumption.
Indonesia currently uses biodiesel with 20 percent bio-content, also known as B20, with which could save about 5.5 billion U.S. dollars annually in shipment of fuel from abroad, said Jokowi, the popular name of the president, during a cabinet meeting.
"We want (the shifting from B20 to B30) to speed up. We want to edge down our reliance on fossil fuel, and the most important thing is that we want to cut our oil import," the president said.
"We must be aware that our crude palm oil demand has been in a depressed position, therefore everyone must have the same commitment, the same desire, that the domestic demand can solve this problem," he stressed.
The Indonesian government has been carrying out road tests for diesel vehicles running B30 fuel.
Jokowi said that the move would also be a solution on the pressure from the European Union and other global buyers on Indonesia's palm oil industry.
"We must seriously anticipate pressures on palm oil by taking steps in domestic, so that we will have a strong bargaining position against the European Union or other countries which try to weaken our bargaining position," he said.
He has also sought the advantage of the B30 in aviation industry, asking ministers to undertake a study for the possibility of mixing palm oil-based fuel with jet fuel.
Accusing Indonesia's palm oil industry to be the factor in deforestation, the European Union attempts to phase out crude palm oil from being used in raw materials for bio-fuel, and the bloc also plans to apply anti-subsidy tax on biodiesel from Indonesia.
