Biofuels for the Future
Jakarta, August 6, 2024 - The Pertamina Energy Institute, in collaboration with Universitas Pertamina, hosted 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 (Universitas Pertamina, Universitas Pertahanan, Universitas Indonesia, Universitas Pelita Harapan), BRIN, research institutions, and NGOs.
Henricus Herwin, SVP of Strategy & Investment of PT Pertamina (Persero), presented the national energy outlook in several scenarios and discussed the roles of natural gas, biofuels, geothermal energy, and CCS/CCUS in supporting Indonesia's energy transition.
Dr. Dina Nurul Fitria, a National Energy Council (DEN) member, outlined the energy transition roadmap towards Net Zero Emission 2060, the revision of Government Regulation No. 79 of 2014 on National Energy Policy, and various efforts to achieve the energy mix targets. For biofuel development, Dina emphasized the need for Diversification of Feedstock to reduce dependence on a single type of biofuel source and mitigate supply risks, Technological Advancements to improve biofuel production efficiency and reduce costs, National Energy Policies to stabilize the biofuel market and ensure sustainable practices, environmental protection, and supply chain risk mitigation: handling costs, inventory, pipelines, dispatch orders, pricing system.
At the same event, Vice Chairman of Research & Technology of the Indonesian Biofuel Producers Association (APROBI), Dr. Jummy BM Sinaga, highlighted the significant potential of the biofuel industry in contributing to the national economy. Indonesia supplies 21% of the world's vegetable oil with palm oil. Indonesia's installed biodiesel capacity is approximately 20 million kiloliters, which could increase the blend to 40% (B40), which is being gradually implemented. He explained that the B35 program has been successfully implemented and 6-RK2 that progress is being made on B40 biodiesel trials. Automotive sector trials have been successful, and trials for non-automotive sectors such as railways, heavy equipment in the mining sector, power plants, and agricultural machinery are underway. If B40 trials are completed by the end of 2024 and proceed smoothly, implementation is likely in 2025.
Prof. Dr. Eng. Ir. Iman Kartolaksono, from the Institut Teknologi Bandung and a lecturer at Universitas Pertamina, discussed the biofuel research journey from laboratory scale to the B30 implementation in 2020. B30 is a blend of 30% biodiesel with 70% diesel fuel, including SAF or Biojet fuel development.
Yohanes Handoko Aryanto from the 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 drive technological breakthroughs.
In the closing agenda, Widhyawan Prawiraatmadja, Ph.D., Advisory Board member of the Pertamina Energy Institute, emphasized that the Net Zero Emission (NZE) target is a positive step towards a sustainable future. However, policymakers need to consider various challenges in realizing the potential of renewable energy. These challenges include balancing macro policies, regulations, and business perspectives to maximize profits, funding difficulties, and the need for incentives to support the growth of the clean or low-carbon energy sector. Therefore, cross-sectoral coordination is essential to achieve the NZE target and ensure sustainable economic growth.
The Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that Pertamina continues to develop biofuels as part of the company's commitment to energy transition.
"Biofuels utilize renewable energy sources, making them more environmentally friendly," said Fadjar.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.