Hoax 8 : The replacement of diesel fuel with palm biodiesel brings losses to Indonesia
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Is the export of Indonesian Palm Oil is not important for the national economy?
Implementation of a policy concerning the mandatory use of biodiesel from 2014 to 2016 in Indonesia led to accumulated savings of diesel fuel, reduced CO2 emissions and more foreign exchange from diesel imports (See the figure below). Cumulatively, 5 million tons of diesel fuel imports and foreign exchange from diesel imports worth US$2.3 billion were saved. It also reduced CO2 emissions by 12.4 million tons.
Figure : Accumulated saving of diesel imports, reductions of CO2 emissions and improved foreign exchange based on the implementation of mandatory biodiesel in Indonesia (Economic Ministry, PASPI data, 2017)
Thus, the policy for mandatory biodiesel provides double benefits for Indonesia, namely to build national energy sovereignty through the efficient use of imported diesel and to earn foreign exchange from imported diesel. In addition, the policy reduces national CO2 emissions.