Biofuels for the Future

Jakarta, The Indonesia Herald - Pertamina Energy Institute in collaboration with Pertamina University organized The 2nd Pertamina Energy Dialog 2024 with the theme "Harnessing Biofuels For Resilient and Sustainable Energy" (05/08). The forum was attended by stakeholders such as members of the National Energy Council, academics (Pertamina University, Defense University, University of Indonesia, UPH), BRIN, research institutions and NGOs.

Henricus Herwin as SVP Strategy & Investment of PT Pertamina (Persero), presented the national energy outlook in several scenarios, and conveyed the role of natural gas, biofuels, geothermal, and CCS/CCUS in supporting Indonesia's energy transition.

Dr. Dina Nurul Fitria, as a member of the National Energy Council (DEN) conveyed the energy transition road map towards Net Zero Emission 2060, revisions to Government Regulation 79/2014 on National Energy Policy and various efforts to encourage the achievement of the energy mix target. In the context of biofuel development, Dina emphasized the need for Feedstock Diversification to reduce dependence on one type of biofuel source and mitigate troop risk, Technological Advancements to increase biofuel production efficiency and reduce costs, National Energy Policy to stabilize the biofuel market and ensure sustainability practices, environmental protection and supply chain risk mitigation: handling costs, inventory, pipelines, dispatch orders, pricing systems.

On the same occasion, Vice Chairman of Research & Technology of the Indonesian Biofuel Producers Association (APROBI), Dr. Jummy BM Sinaga said that there is a great opportunity for the biofuel industry to contribute to the national economy. Indonesia currently contributes 21% of the world's vegetable oil supply with palm oil. The installed capacity of biodiesel in Indonesia is +/- 20 million Kiloliters, still capable of increasing the mixture to 40% (B40), and is being done in stages. He explained that the B35 program has now been successfully implemented and the progress of B40 biodiesel trials is being carried out in stages. Trials for the automotive sector have been successfully carried out, and trials are currently underway for non-automotive sectors such as the Railway (KAI), Heavy Equipment in the mining sector, Power Plants, and agricultural machinery. If the B40 trials are expected to be completed by the end of 2024 and run smoothly, there is a possibility of implementation in 2025.

Prof. Dr. Eng. Ir. Iman Kartolaksono from the Bandung Institute of Technology and also a lecturer at Pertamina University conveyed the process of the laboratory-scale biofuel research journey until the eventual implementation of B30 in 2020. B30 is a mixture of 30% biodiesel with 70% diesel fuel. Including the development of SAF or Biovatur.

Yohanes Handoko Aryanto from Pertamina Energy Institute presented a study on the role of biofuels in balancing economic growth and decarbonizing the transportation sector, and how the energy transition requires an innovation roadmap to improve economics and encourage technological breakthroughs.

To conclude the agenda, Widhyawan Prawiraatmadja, Ph.D, Advisory Board Pertamina Energy Institute, emphasized that the Net Zero Emission (NZE) Target is a positive step towards a sustainable future. However, policy makers need to consider various challenges in realizing the development of Renewable Energy potential. These challenges include the ability to balance between macro policies, regulations and business perspectives in an effort to maximize profits, difficulties in funding, and the need for incentives that support the growth of the clean or low-carbon energy sector. Therefore, cross sectoral coordination is needed to achieve NZE targets and ensure sustainable economic growth.

Pertamina Vice President Corporate Communication Fadjar Djoko Santoso said Pertamina continues to develop biofuels as part of the company's commitment to energy transition.

"Biofuel uses renewable energy materials so it is more environmentally friendly," Fadjar said.

Pertamina, as a leading company in the field of energy transition, is committed to supporting the Net Zero Emission 2060 target by continuing to encourage programs that have a direct impact on the achievement of Sustainable Development Goals (SDGs). All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all Pertamina's business lines and operations.