Biodiesel available at only half of Pertamina's Indonesia fuel depots

JAKARTA,  (Reuters) - Indonesia’s Pertamina said unblended biodiesel had only been distributed to around half of its fuel depots across the archipelago, despite a programme launched this month for more widespread use of the biofuel.

Southeast Asia’s largest economy rolled out rules this month requiring all diesel fuel to contain at least 20 percent bio content, among government efforts to boost palm oil consumption, cut Indonesia’s fuel import bill and support the rupiah.

In Indonesia, the bio portion of biodiesel is made with fatty acid methyl esters (FAME) from palm oil.

As of Friday, Pertamina had only received FAME at 69 of its 112 fuel depots in Indonesia, company spokesman Adiatma Sardjito said. However, Sardjito said he was currently unable to provide data on the volume of FAME distributed so far.

“We receive shipments of FAME at terminals and then distribute it,” Sardjito said, referring to a tender process for purchasing FAME from suppliers that is supervised by the Energy and Mineral Resources Ministry.

“More than half of Pertamina terminals are ready to receive (FAME),” he said, adding that most of the terminals that had not received FAME are in eastern Indonesia.

Deputy Energy Minister Arcandra Tahar said there were “technical problems” related to FAME distribution and storage, but these were “being sorted out”.

Indonesia’s unblended biodiesel production is estimated to reach 5 million tonnes this year, an industry association said in August.

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