PUTRAJAYA (15 Sept. 2018): There should be no concern that the use of biodiesel will affect vehicle engines as proven by the implementation of biodiesel programme in Indonesia, said Wilmar International Country Head in Indonesia, Darwin Indigo.
In allaying concerns by Malaysian hauliers and automotive manufacturers on the implementation of biodiesel programme in Malaysia, Indigo said Indonesia has been carrying out its biodiesel programme four years without any adverse effects to vehicle engines.
Indigo shared Indonesia’s experience with the Primary Industries Ministry here Friday, and said it was “really possible and good” for Malaysia to implement its B10 (blend of 10% palm methyl ester and 90% diesel) programme for the transport sector.
Also present at the briefing was Primary Industries Minister Teresa Kok.
Indonesia, the biggest palm oil producer in the world, introduced its B10 biodiesel programme in 2014, followed by the B15 program in April 2015 and B20 program early 2016.
“In the beginning there was reluctance by vehicle manufacturers but the Government set the rules and by the second year everyone supported the programme. Most of the vehicle manufacturers in Indonesia currently still provide engine warranty for use of B20.
“If the plantation trucks in Indonesia can run on bad roads and terrains there would be no problem for vehicles running on biodiesel plying normal conditioned roads,” Indigo added.
Another factor, he said, was that besides regulations, Indonesia also imposed penalty on petrol stations and diesel producers for non-compliance.
“A penalty of 6000 rupiah per liter of diesel is imposed for non-compliance and with strict enforcement and monitoring, the programme has been a success,” he said.
Indigo also pointed out that to gain industry and public acceptance, awareness on the benefits of using palm oil to the environment, economy and the industry was important.
“Strong domestic demand will create trade balance when diesel import is cut. Increasing use of palm oil will reduce domestic stock and help stabilise prices, thus enabling smallholders to earn more income.
“It is also good for sustainable development to lessen our dependency on fossil fuel.”
“Now is also the right time for Malaysia to implement its B10 programme as palm oil price is lower. The programme will be good for Malaysia, as the second largest palm oil producer in the world,” Indigo opined.
Wilmar is one of the biggest biodiesel producers in the republic and works closely with Indonesia government in its B20 programme. Wilmar exports biodiesel products to United States, Europe, India and China.