ESDM Revises Biofuel Regulation, Arranges Incentive Provisions

The Ministry of Energy and Mineral Resources (ESDM) is currently finalizing the revision of Minister of Energy and Mineral Resources Regulation No. 32 of 2008 on the Provision, Utilization, and Trade of Biofuel (BBN) as an Alternative Fuel, last amended by Minister of Energy and Mineral Resources Regulation No. 12 of 2015 (Permen ESDM No. 32/2008).

Yoga Marantika, Legal Coordinator of the Secretariat of the Directorate General of New, Renewable Energy, and Energy Conservation (Ditjen EBTKE), stated that the revision will also change the title to the Draft Ministerial Regulation (RPM) on Biofuel Enterprises. It is currently in the harmonization phase at the Ministry of Law and awaiting a final decision.

"This draft ministerial regulation is about to enter the harmonization stage at the Ministry of Law. Internal discussions at ESDM have been completed," said Yoga.

Meanwhile, Director of Bioenergy at the Ministry of ESDM, Edi Wibowo, explained that there are at least 11 main changes in the revised Permen ESDM 32/2008, including regulations on BBN types, BBN supply, BBN trading activities, BBN utilization, phased implementation, pricing, environmental management, incentives, Carbon Economic Value (NEK) application, supervision, and sanctions.

Regarding incentives, Edi confirmed that both fiscal and non-fiscal incentives would be provided. Fiscal incentives will comply with financial regulations, while non-fiscal incentives may include simplified licensing procedures and business requirements as well as recognition awards for business actors.