Executing the B35 Distribution Mandate, One of Pertamina Patra Niaga's Steps to Reduce Gas Emissions from Fuel

Jakarta, August 16, 2023 - The national energy transition is intensively promoted in Indonesia as a step towards better energy utilization, including in the vehicle fuel sector. It cannot be denied that the majority of vehicles today still use petroleum-based fuel (BBM) or fossil energy, and the demand for it is very high.

Recognizing the high demand, Pertamina Patra Niaga and the Coordinating Ministry for Economic Affairs see an opportunity to promote biofuel blend utilization, such as Biodiesel. Over the past seven  years, the blending level of Biodiesel has continuously increased, and as of February 2023, the blend has been set at 35%, known as B35.

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, mentioned that the Biodiesel implementation has had a positive impact. In 2022, the distribution of 10.5 million kiloliters (KL) of B30, a 30% biofuel blend, had a positive impact on reducing greenhouse gas emissions by about 27.8 million tons of CO2. This also resulted in significant savings for the country's foreign exchange reserves, amounting to USD 8.34 billion, and created employment for over 1.3 million people.

"We are increasing the Biodiesel mandate, and this serves as a substitution for Diesel fuel used in diesel engines, bringing Indonesia closer to environmentally friendly energy. The government is encouraging state-owned enterprises like Pertamina and PLN to use more sustainable products and promoting this as a Key Performance Indicator for executives working in the energy sector," stated Airlangga during his keynote speech at the B35 Biodiesel Mandate Implementation event (31/01/2023).

Looking at the B30 implementation, it is expected that B35 will have an even more significant impact on reducing greenhouse gas emissions. It is projected to reduce up to 34.9 million tons of CO2 from the estimated absorption of B35, which is 13.15 million KL.

Pertamina Patra Niaga welcomes this Biodiesel program. As of August 2023, 119 Petroleum Terminals managed by Pertamina across Indonesia have already distributed B35 for consumption by the public's vehicles. "Following the B35 distribution roadmap for 2023, Pertamina Patra Niaga has adjusted B35 distribution in all managed Petroleum Terminals. Thus, 100% of petrol stations throughout Indonesia have provided B35," explained Riva Siahaan, the President Director of PT Pertamina Patra Niaga.

Riva stated that in addition to distribution to petrol stations, B35 is also provided to consumers or strategic industry partners of Pertamina to maximize the biofuel program implemented by Pertamina Patra Niaga.

"The transition towards more environmentally friendly fuel and Biofuel is Pertamina Patra Niaga's continuous commitment. This is our support and contribution to reducing emissions from the transportation sector through better fuel utilization. This is our step in supporting the national target of 31% renewable energy mix by 2050, as well as Indonesia's Net Zero Emission aspiration by 2060," stated Riva.

In line with Riva's remarks, Fadjar Djoko Santoso, VP of Corporate Communication of Pertamina, stated that nationwide Biosolar product utilization could serve as an alternative solution to reduce air pollution in major cities. Pertamina encourages all segments of society to sustainably transition to more environmentally friendly fuels.

"Achieving the Net Zero Emission target cannot be accomplished solely by Pertamina; it requires the entire community’s participation. With the community’s active involvement in using Biosolar, it will undoubtedly contribute to emission reduction efforts, especially in large cities like Jakarta," expressed Fadjar.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**