Robust Sanction Needed to Boost Biofuel Usage

Rabu, 31 Juli 2013 | 09:10


Indonesian Biofuel Producers Association (Aprobi) urges the government to give decisive sanction against industry sectors that are not using biofuel as energy mixture for their machinery and transport equipments. Head of Aprobi Paulus Tjakrawan said the sanction must adhere with sanctions in other countries that have set the use of biofuel into their legislation.

 

The government should also follow other countries that are using severe punishment if they find violation regarding the mandatory use of biofuel. “In Philippines, the Law on biofuel has been started since 2007. The sanction for not using [biofuel] is 5-year imprisonment and fine of 5 million peso,” he said in Jakarta, Monday (7/29).

 

Up to now, Ministry Decree No. 32/2008 only regulates sanction against producers that are not using biofuel as a mixture. According to schedule, Directorate General of New and Renewable Energy Conservation (EBTKE) plans to amend the decree, including administrative sanction for business entities that do not perform the obligatory use of liquid and solid biofuel.

 

Paulus said the support for biofuel producer is only lack of implementation and government’s inconsistency so far. The use of biofuel for the industry, he added, should have been implemented long ago.

 

Aprobi said the obligation is not running due to lack of coordination between Ministry of Energy and Mineral Resources and Ministry of Industry. Currently, business entities that are obligated to use biofuel are coal producers and electricity companies, including PT Perusahaan Listrik Negara.

 

The association emphasized that this inconsistency makes Indonesia slow in utilizing biofuel. Furthermore, the lack of certainty in price index since 2008 raises concerns for employers that it will open a gap for Malaysia and Brazil to import biofuel with lower price.

 

Based on the data from Directorate General of EBTKE regarding the amendment of Ministry Decree No. 32/2008, one of the main changes is the guidance and supervision toward the use of biofuel. This is to monitor the use of biofuel on biofuel business entities conducting biofuel commercial business activities.

 

Supervision regulation will also be implemented toward fuel companies to implement the mandatory use of biofuel.

 

Such supervision is also planned for electricity companies that are required to use biofuel in the form of gas or solid at power plants. The last supervision and guidance from the government is toward individuals and groups operating within the framework of energy self-sufficient villages producing and trading biofuel.

 

Regarding this matter, Directorate General of EBTKE will still provide sanction but only administrative sanction. Bioenergy Director Dadan Kusdiana said the previous regulation already regulates the sanction but the limitation on the use of biofuel is not yet complete. After being amended, the government’s sanction will be more assertive. (aph)

by Inda Marlina, Arsyad Paripurna
source http://en.bisnis.com