BADAN PENGKAJIAN DAN PENERAPAN TEKNOLOGI(AGENCY FOR THE ASSESSMENT AND APPLICATION OF TECHNOLOGY)

INDONESIAN POLICY TOWARD HIGH BLEND OF BIODIESELFOR TRANSPORTATION AND MARKET EXPERIENCE

IMAM PARYANTOCENTER FOR ENGINEERING DESIGN & TECHNOLOGY SYSTEM (BRDST – BPPT)

WORKSHOP ON HIGHER BLENDING OF BIODIESEL UTILIZATION IN ASEANBANGKOK, 17-18 SEPTEMBER 2015

1

WORKSHOP ON HIGHER BLENDING OF BIODIESEL UTILIZATION IN ASEAN

Why Biodiesel?

2004:   Indonesia 

Source : PT Pertamina (Persero), 2012

became a net oil‐importing country

Source : Arifin Panigoro,2013

Biodiesel is the most potensial renewable fuel to subsitute fossil diesel fuel inIndonesia, with respect to :, p Availability of supply : existing biodiesel production & raw material (CPO) Readiness in the implementantion : policy/regulation & technical aspect

2

Policy on Development and Implementation of Biofuel (Biodiesel)LAW NO. 30 YEAR 2007

About ENERGY

GOVERNMENT REGULATION NO. 79 YEAR 2014abo t Polic on National Energ

Priority on supply and utilization of New & Renewable Energy, including Biofuel.

Target of NRE in 2025 at 23% of National Energy Mix, andabout Policy on National Energy

PRESIDENT INSTRUCTION NO. 1 YEAR 2006about Supply and Utilization of Biofuel as Other Type of

Fuel

Biofuel is targetted at 26% of NRE target.

Instruction to several Ministries, Governors, Mayor/Regent for actions to accelerate supply & utilization of biofuel.Fuel

MINISTRY of EMR REGULATION NO. 32 YEAR 2008 about Supply, Utilization and Trade Scheme of Biofuel as

Oth T f F l

pp y

Mandatory Phase for Utilization of Biofuel in the Sectors : Transportation, Industries, Comercials and Power Plants.

Other Type of Fuel Acceleration and Increase in the Utilization of Biodiesel (Revised Mandatory Phase in 2015)

MINISTRY of EMR REGULATION NO 25/ 2013, NO. 20/2014 and No. 12/2015

about first, second and third amandement on MINISTRY of EMR REGULATION NO. 32 YEAR 2008

Determination of Market Index Price (HIP) for Biofuel bended to DECREE of MINISTRY of EMR NO.2185K/12/MEM/2014 b t d d t Mi i t f EMR D Determination of Market Index Price (HIP) for Biofuel bended to

fossil fuel (PSO/Non PSO).about second amandement on Ministry of EMR Decree

NO.0219K/12/MEM/2014

3Source : Ministry of Energy & Mineral Resources, 2015

Energy and Mineral Resource Ministry Regulation Number 12 Year 2015S t A il J J JSector April

2015January

2016January

2020January

2025Micro business Fishery Business 15% 20% 30% 30%Micro business, Fishery Business, Agriculture Business, Transportation and Public Services (PSO)

15% 20% 30% 30%

Transportation Non PSO 15% 20% 30% 30%Industrial and Commercial 15% 20% 30% 30%Electricity Generation 25% 30% 30% 30%

Note:PSO : Public Service Obligation (Subsidized)

4

POLICY AND REGULATION OF BIOFUEL DEVELOPMENT & IMPLEMENTATION

President Instruction Number 1 Energy and Mineral Resource

Implementation of B20

President Instruction Number 1 Year 2006

Distribute B2.5 to 500 Fuel Station(Jakarta, Surabaya, Malang andDenpasar) by PERTAMINA

Acceleration mandatory utilization of biofuel in the transportationsector, industry, and power generation

Energy and Mineral Resource Ministry Regulation Number 25Year 2013

Increased of Biodiesel utilizationB7 5 to B10 on Sept 1st 2013

2006 2007 2008 2009 2010 2011 2012 2013 2014 2016

Denpasar) by PERTAMINA generation B7.5 to B10 on Sept 1st, 2013

B2 5 B7 5 B15 B20

Energy and Mineral Resource Ministry Regulation Number 32 Year 2008

B2.5 – B7.5 B10 B15

Energy and MineralResource MinistryRegulation Number

B20

Regulation Number12 Year 2015B15 on April 1st,2015(implemented in Aug/

Energy and Mineral Resource Ministry Regulation Number 20 Year 2014 I d f Bi di l tili ti (B30 Y 2020)

(implemented in Aug/Sep 2015)

Increased of Biodiesel utilization (B30 on Year 2020)Road test utilization of B20

* Update April 2015 5Source : Ministry of Energy & Mineral Resources, 2015

PROGRESS OF BIODIESEL SUPPLY(PRODUCTION, EXPORT & DOMESTIC USE)

4 500

3,4743,500

4,000

4,500

2,221

2,805

2,500

3,000

andkL

1,812

1,453 1,5521,757

1,629

1,048

1,845

1,500

2,000

thou

sa

190 243

554

70 20 56119 223359

669

352

0

500

1,000

2009 2010 2011 2012 2013 2014 2015*

Production Export Domestic

Note: * status per 30 June 2015Note: * status per 30 June 2015

6Source : Ministry of Energy & Mineral Resources, 2015

BIOFUEL PRODUCERS DEPOT/FUEL STORAGE FUEL STATIONS USERS/CONSUMERS

MONITORING AND EVALUATION OF FUEL QUALITY (B0, BXX, B100)

Fuel StationARMYPT. PLN

Sample Biodiesel Sample Bioetanol Sample Biooil

Q1 Q2

Sample for quality test Sample for % Biodiesel quanity test (loading) Sample for % Biodiesel quantity test (unloading)

Sample for % Biodiesel quanitity test (fuel station: Pertamina, Total, Shell)

Sample in Mining Companies Sample in Army Facilities (TNI) Sample in PLN (State Electricity Facilities) Sampel in Rail Company/PT KAI)

Fossil Fuel Storage In line blending

MINING PT. KAITruck/Tanker Biofuel

Q2Q2

In line blending

Loading

In tank blending

/

Q1

BiofuelStorage

Q1

Biofuel Quality Test

Q2

Biofuel (% Biodiesel) Quantity Test

Flow BiofuelFlow Fossil FuelFlow B xx (Biosolar etc)

Q1

Unloading

Q2Biofuel Quality Test Biofuel (% Biodiesel) Quantity Test Flow B xx (Biosolar etc)

Q2 Blending BIODIESEL (B100) & SOLAR (B0)2010 2011 2012 2013 2014

Q1 Quality Test Result of BIODIESEL2010 2011 2012 2013 2014

SNI Total samples 8 14 65 95 223% Mandatory 5% 5% 7,5% 7,5% - 10% 10%Average Result 6,08% 5,2 7,46% 9,61% *) 8,3%

Note : - In 2010 conducted by Ditjen Migas; And In 2011 – 2013 conducted by

SNI 7182:2006 7182:2006 7182:2006 7182:2012 7182:2012Total Samples - 15 15 15 12Note : - In 2010 conducted by Ditjen Migas; In 2011 – 2013 dilakukan oleh Ditjen

EBTKE Ministry of Energy and Mineral Resources- Based on the result of fuel quality monitoring activites for all test parameters,

Ditjen EBTKE Ministry of Energy and Mineral Resources*) First Sampling conducted in August 2013. Starting 1 Sept Regulated by Permen ESDM. No. 25/2013 (B10)

Based on the result of fuel quality monitoring activites for all test parameters, generally Biodiesel & Bxx marketed has met the specification of Biodiesel SNI (on Spec) , i.e. about 90% of all parameters, and improved percentage in the following years.

7Source : Ministry of Energy & Mineral Resources, 2015

B20 ROAD TEST 2014

8

B20 TEST ACTIVITIES (2014)for implementation of B20 in 2016

Fuel Supply

BACKGROUND ACTIVITIES & STAKEHOLDERS TARGET

BiofuelMandatory

Fuel Quality Tests

Fuel Supply

‐ PT PERTAMINA              ‐ APROBI

REC

Engine Technology Development

Q y

‐ BRDST BPPT                  ‐ LEMIGAS Fuel System Test

ITB/GAIKINDO(DENSO)Technical Assessment for B20 Utilization

COM

TestUpdating

/ ( )

B20 Storage Stability & Material 

for B20 Utilization 

Coordinator :  Ministry of Energy & Mineral Resources

MEN

TechnicalSupport

B20 Engine Test

‐ BTMP BPPT                    ‐ GAIKINDO

Compatibiliy

‐ LEMIGAS                        ‐ ADARO                           

‐ BRDST BPPT

Mineral Resources (DJ EBTKE)  D

AT

Regulation Reference

BRDST BPPT

B20 Heavy Engine Test

TIO

9

‐ HINABI/BPPT/ITB N

9

Research Development Engineering Operation

Uji Kadar Ester (By volume)

20

40

60

80

100

120

140

Kada

r Ester (%

)

Produsen A

Produsen B

Produsen C

Produsen D

y=x

10

0

0 20 40 60 80 100 120 140

% Blending

10

Road Test ImplementationStoring  Vehicles with  SUPPLY FUEL (B0 & B20) TO BASECAMP II

AT LEMBANG BANDUNG

Road Test Implementation

B20 Fuel

Toyota –

AT LEMBANG, BANDUNG

Innova(2 units : B0 & B20)

VEHICLE A

ROAD TEST 40,000 KMB0

B20(k )

Chevrolet –Spin

0 40,00020,000 30,00010,0005,0002500

(km)

Emissions p(2 units : B0 & B20)

VEHICLE B

Test

Chassis Dynometer 

Test

Mitsubishi –Pajero(2 units : B0 & B20)

Lubricant Analysis

Metrology ( )

VEHICLE C

gyand Rating

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Specification of B20 Road Test VehiclesSpecification of B20 Road Test Vehicles

Vehicles A (B0 and B20) Vehicles B (B0 and B20) Vehicles C (B0 and B20)

Manufactured in 2005    Cylinder Volume : 2 500 cc

Manufactured in 2014      Cylinder Volume : 1 300 cc

Manufactured in 2009 Cylinder Volume : 2 500 ccCylinder Volume : 2,500 cc Cylinder Volume : 1,300 cc Cylinder Volume : 2,500 cc

4 cylinders in‐line 16 valves 4 cylinders in‐line 16 valves 4 cylinders in‐line 16 valves

Common rail, Turbocharge & EGR

Common rail, Turbocharge & EGR

Common rail, Turbocharge & EGR

Manual TransmissionMaintenance period :10 000 km

Manual TransmissionMaintenance period : 15 000 km

Automatic TransmissionMaintenance period: 5 000 kmMaintenance period :10,000 km Maintenance period : 15,000 km Maintenance period: 5,000 km

12

Route for B20 Test(Daily Distance +/‐ 540 km  Total Distance 40,000 km)

START

TRANSIT

1313Route of B20 Road Test considered road conditions : highways, uphill & downhill roads, warm &cold temperature condition and traffic jams.

Influence of B 100 added to B 0 on the Specification of B 20Influence of B‐100 added to B‐0 on the Specification of B‐20Samples & Test Result for B‐100, B‐0 & B‐20

Taken from the Road Test Activities of Biodiesel 20% (B‐20) Implementationf k

Result : Quality of B‐0, B‐100 dan B‐20 has met quality requirement on National

Regulation/Standard

at Distance of 40,000 km

Regulation/Standard. Quality improvement of (B‐20) compared to B‐0 : flash point, cetane number & sulphur

content.Improvement of several important parameters on B20 fuel

No Parameter UnitsB‐0 B‐xx (B20) B‐100 (SNI 2012)

Standard Lab Test Standard Lab Test Standard Lab Test1 Viscosity mm2/s (cSt) 2 0 ‐ 4 5 2 95 ‐ 3 35 2 0 ‐ 4 5 2 60 ‐ 2 99 2 3‐6 0 3 50 ‐ 4 50

Improvement of several important parameters on B20 fuel

1 Viscosity mm2/s (cSt) 2,0  4,5 2,95  3,35 2,0  4,5 2,60  2,99 2,3 6,0 3,50  4,50

2 Flash Point deg C, minimum 52 56 ‐ 73 52 67 ‐ 78 100 157 ‐ 166

3 Cetane Number minimum 48 47,8 ‐ 48,8 48 48,4 ‐ 52,1 51 60,9 ‐ 65,0

4 Acid Value mg‐KOH/g, maximum 0,6 0,045‐0,050 0,6 0,094 ‐ 0,123 0,6 0,12 ‐ 0,20

5 Oxidation Stability (Rancimat)

minute,minimum ‐ > 200 hours ‐ 91.91 – 107.23 

hours 360 760 ‐ 1440

14

(Rancimat) minimum hours

6 Sulphur Content mg/kg, max 0,350 0,079 ‐ 0,289 0,350 0,062 ‐ 0,263 100 0,003 ‐ 0,007

14

SUMMARY OF B20 ROAD TEST RESULT ON PASSENGER CARS (2014)Preliminary Test for Vehicle Performance Test : Rating, Emission Test and Performance Test at 0 km

Several Tests :E i i T t t 2 500 5 000 10 000 20 000 30 000 d 40 000 k‐ Emission Test at 2,500; 5,000; 10,000; 20,000; 30,000 and 40,000 km.

‐ Performance Tests (power and fuel consumption, opacity) at 10,000 km; 20,000; 30,000 and40,000 km.

Result of quality fuel tests (B0 B20 & B100) at BRDST BPPT and LEMIGAS showed that all fuels usedResult of quality fuel tests (B0, B20 & B100) at BRDST BPPT and LEMIGAS showed that all fuels usedfor road test has met the Standards stated in the Regulation Dirjen EBTKE No. 723 K/10/DJE/2013for B100 and Regulation Dirjen Migas No. 978.K/10/DJM.S/2013 for B0 and B20.

Summary of the Result: Result of B20 Emission Test showed improved exhaust gas emission : SOx, CO, PM and THC Increase in fuel consumption about 3% and decrease in power about 2% for the cars with B20

fuel compared to B0 fuel. This result is accordance with the hypothesis:p yp B100 has Calorific Value about 5‐10% less than B0, but Fuel Economy of its blend only decrease about 3%

B100 Calorific Value : 37.3 MJ/Kg x 0.89 Kg/Ltr = 32.93 MJ/Liter, andB0 Calorific Value : 42 7 MJ/Kgx0 84 Kg/Ltr = 35 8 MJ/LiterB0 Calorific Value : 42.7 MJ/Kgx0.84 Kg/Ltr = 35.8 MJ/Liter

Biodiesel has higher cetane number (60‐69 for palm B100), and better lubricity property thanthat of B0.

However, for road test vehicles with B20, there was an increase power on every 10,0000 km. Old hi l i d f l filt l i t 7 500 k b t f th di t l d f l Older vehicle experinced fuel filter clogging at 7,500 km, but further distance elapsed no fuel

filter clogging occurred. (Recommendation : to anticipate this concern on B20 implementation in2016 especially for old cars (approx. 4 millions in number), therefore, it needs to %B100 stepwiseimplementation 2015 to implement B15. 15

Revision SNI Biodiesel 2006  2012  2015?

Objectives : Maintain and improve biodiesel quality marketed in Indonesia to secure fuel Maintain and improve biodiesel quality marketed in Indonesia to secure fuel

users and producers as well as to support the development of biodieselindustries.

NO TEST PARAMETER UNITS SNI 2006 SNI 2012 SNI 2015? REMARKS

1 Acid Value mg‐KOH/g, max 0.8 0.6 0.5 Change in value

2 C St i C i N 3 N 1 N 1 Ch i l2 Copper Strip Corrosion max No.3 No.1 No.1 Change in value

3 Sulphur Content mg/kg, max 100 100 50 Change in value

4 Phosphor Content mg/kg, max 10 10 4 Change in value

5 Oxidation Stability:

‐ Rancimat Method minutes, min ‐ 360 480 Addition & Change in value

l d % dd

Note :

6 Mono‐glyceride %‐massa, max ‐ ‐ 0.8 Addition

7 Halphen Test Negatif (Not used) ‐

17

Note :• Other Test Paramaters are unchanged as in SNI Biodiesel 7182:2012• Revised SNI 2015 : follow up the recommendation of Road Test in 2014

17

CPO FUNDCPO FUND&

BIODIESEL INCENTIVE

18

Policy & Regulation on CPO Fund 

Law No. 17 / 2003about State Finance (Budget)

Law No. 39 / 2014about Plantation

Government Regulation  No. 24 / 2015 about Accumulation of Plantation Fund 

Accumulation of Plantation Fund: palm, coconut, rubber, coffee, cocoa, cane, tobacco

Presidential Regulation   No. 61 / 2015 about Accumulation and Utilization of P l Pl t ti F d (CPO F d)

Biodiesel subsidy is not included in National Budget (APBN 2015) so The Government launches “Sustainable Development Program forPalm Plantation Fund (CPO Fund)

Regulation from Ministry of Finance No. 133 / 2015 about Tarif of CPO Fund for

launches Sustainable Development Program for Palm Oil”

CPO Fund Tarif :- Palm Kernel, Palm Fruit : US$ 20/ton

$133 / 2015 about Tarif of CPO Fund for Exported Palm, CPO and its derivatives

- Palm solid biomas (EFB, Shell) : US$ 10/ton- Crude Palm Oil : US$ 50/ton- PFAD : US$ 40/ton- SPFAD, RBDP Olein : US$ 30/ton

RBDP oil stearine biodiesel : US$ 20/tonRegulation from Ministry of Finance No. 113 / 2015 about Organization and 

Management of “Public Service Board of Palm Oil Plantation Fund (CPO Fund)

- RBDP oil, stearine, biodiesel : US$ 20/ton

Organization established by the Government for accumulation, administration, management, reserve and distribution of Palm Plantation Fund (CPO Fund).

Palm Oil Plantation Fund (CPO Fund) Management” (BPDPKS) Organization Management consists of terdiri dari Supervisory

Board and dan Management Board

19

Accumulation and Utilization of Palm Plantation Fund (CPO Fund)(1/2)Palm Plantation Fund (CPO Fund)(1/2)

FinanceFinanceFinance CorporationFinance 

Corporation Public FundPublic Fund

Fund Plantation 

Fund Plantation 

Palm Plantation and Palm based 

Industries (Fund Tarif)

Palm Plantation and Palm based 

Industries (Fund Tarif)

Other Legal Fund

Other Legal Fund

PlantationFund

(CPO Fund)

PlantationFund

(CPO Fund)

( )( )

Plantation Development for sustainable palm 

Improvement & stability of 

Reserved Fund when the world 

price ofBudgetp

plantation & industries in Indonesia

ystrategic 

commodity

price of commodity fluctuated

SUSTAINABLE FUND20

Accumulation and Utilization of Palm Plantation Fund (CPO Fund)(2/2)

Program & Activities :

Palm Plantation Fund (CPO Fund)(2/2)

• Human Resource Development (education, training, consultation, advice, supervision & facilities)R h &d) • Research & Development(seedling, cultivation, post harvesting, processing, industry, market, value chain from upstream to downstream)

1. Plantation DevelopmentCP

O Fun

d

p )p )•• Promotion                                                                

(market information, market  & investment expansion, marketing center for 

di i i /

p2. Fulfillment of 

Food Need/Supplyn 

Fund

  (C

)commodity, image improvement/ advancement )

• Replanting (productivity improvement, land 

3. Biofuel4. Downstream of 

Plantation based lantation

p g (p y p ,optimisation/intensification)

Facilities & Infrastructure                                                         • Facilities & Infrastructure                                                         

industries

Palm

 P

(seed, fertilizer, pestiside, equipment, transportation,  infrastructure road , etc)

21

MECHANISM OF BIODIESEL INCENTIVE

USERS/

Biodiesel;HIP Solar

Biodiesel Incetive; HIP Biodiesel HIP Solar

USERS/CONSUMERS FUND SOURCES

B15 Fuel

FUEL DISTRIBUTORS BIOFUEL PRODUCERS

BPDPKS

HIP Solar HIP Biodiesel – HIP Solar

Verification 

MINISTRY OF EMR

Verification Result as Basis for Payment of Fund 

Mechanism of collection and payment of Biodiesel Incentive : based on Presidential Regulation (Perpres) No 61 Year 20151. Fuel Distributors (Pertamina;AKR) pay biodiesel cost according to the Market Index Price (HIP) Solar (Diesel Fuel/B0)2. BPDPKS will pay Biodiesel Incentive (i.e. the difference between Market Index Price of (HIP) Biodiesel and (HIP) Solar) according

to the verification result conducted by Ministry of Energy & Mineral Resources c.q Ditjen EBTKE.

22

FINANCIAL PROGRAM OF BIODIESEL INCENTIVE 

VOLUME OF UNIT PRICE OF TOTAL ESTIMATED

ESTIMATED BIODIESEL INCENTIVE (2015) FOR IMPLEMENTATION OF B15

BIOFUEL TYPES

VOLUME OF DIESEL FUEL

(SOLAR ) VOLUME B15 *) ESTIMATED

BIODIESEL INCENTIVE **)

TOTAL ESTIMATED BIODIESEL INCENTIVE

***)

KL KL IDR/LITER TRILLION IDRKL KL IDR/LITER TRILLION IDR

BIODIESEL 17,050,000 765,166 2,638 2.019

*) Calculated since mid August 2015 until the end of 2015.)  Calculated since mid August  2015 until the end of 2015.**) Projected (estimated) Biodiesel Incentive with assumption of unit price per August  2015.***) Payment of Biodiesel  Incentive will be done in two months (after verification). Hence, the total 

amount of Fund :  IDR 1,59 Trillion,  the rest of the payment will be carried over in2016.

Example of Biodiesel Incentive Calculation for September 2015:HIP Biodiesel = ( Average Price CPO (KPB) + 125 USD/ton) x 870 Kg/m3 ) + Transportation Cost (BiofuelProducers to Fuel Storage)

= (IDR 5,963/Kg+ 125 USD/ton) x 870 Kg/m3+ IDR 321/liter= IDR 7,007/liter

HIP Solar = 57.996 USD/bblBiodiesel Incentive = (HIP Biodiesel – HIP Solar) + VAT 10%

= (7,007 – 4,930) IDR/liter + VAT 10%= IDR 4,930/liter = IDR 2,078/liter + IDR 208/liter

= IDR 2,286/liter

23

IMAM PARYANTO

CENTER FOR ENGINEERING DESIGN & TECHNOLOGY SYSTEM (BRDST – BPPT)

BUILDING 480 KAWASAN PUSPIPTEK SERPONGBUILDING 480 KAWASAN PUSPIPTEK , SERPONG

SOUTH TANGERANG – BANTEN 15314

INDONESIAINDONESIA

PHONE : +62-21-7563213 FAX : +62-21-7563273

EMAIL : imam paryanto@bppt go id / iparyanto@gmail comEMAIL : imam.paryanto@bppt.go.id / iparyanto@gmail.com

24