INDONESIA: Supply Utilization and Trading Procedure of Biofuel as Alternate Fuel (Regulation of the Minister of Energy and Mineral Resources No. 32/2008 of 2008)

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2008
Scope: 
National
Document Type: 
Rule/Regulation
Economic Sector: 
Energy, Transport
Energy Types: 
Renewable, Bioenergy
Issued by: 
Minister of Energy and Mineral Resources
Source: 
Ecolex (2008)
Ecolex (Second Amendment, 2014)
File: 
Regulation of the Minister of Energy and Mineral Resources No. 32/2008 of 2008
Overall Summary: 
This Regulation makes provision for the supply, use and trade of biofuel as alternate fuel in order to increase the use of alternate fuel in the context of national energy supply.
Access
Energy access action plan: 
In the context of Energy Independent Village, individuals or business groups may produce and trade biofuel as alternate fuel to meet and provide biofuel as alternate fuel for the village itself.
Renewable Energy
RE priorities: 
Arrangements on the supply, utilization and trading procedure of biofuel as alternate fuel is purported to increase the utilization of alternate fuel in the context of national energy tenacity. Biofuel asalternate fuel can be in the form of Bio-diesel (B100), Bio-ethanol (E100), and Pure Biological Oil (O100).
Biofuels obligation/mandate: 
In order to increase the utilization of alternate fuel in the context of national energy tenacity [...], business enterprises holding Oil Fuel Trading Business Permit and Direct Users of Oil Fuel are obliged to use biofuel as Alternate Fuel in stages (phases). (2) The phasing of obligation to use biofuel as altemate fuel as meant in paragraph (1) shall be performed in accordance with the provisions stated in the attachment to this Minister Regulation.---The DirectorGeneral shall stipulate the standard and quality(specifICation) of biofuel as alternate fuel to be traded and calculated domestically, to the extent an obligatory Indonesia National standard (SNI) has not yet been stipulated.
Pricing
Energy pricing: 
Selling price of biofuel as alternate fuel is differentiated in two categories, l.e, Biofuel as Specific Alternate Fuel and Biofuel as General Alternate Fuel. Retail selling price of biofuel as general alternate fuel shall be stipulated by business enterprises based on: a. buying capacity of domestic consumers; b. continuity of supply and distribution; and c. level of economy with a logical margin.
Energy Supply and Infrastructure
Energy supply priorities: 
Business enterprises performing trading business activities of biofuel as alternate fuel are obliged to: a. ensure the availability of biofuel as alternate fuel to meet domestic requirements continuously; and b. utilize and prioritize biofuel from domestic products.
Investment
Independent power producers: 
In the context of Energy Independent Village, individuals or business groups may produce and trade biofuel as alternate fuel to meet and provide biofuel as alternate fuel for the village itself.
Local content requirement: 
In the performance of constructing the facilities and means for trading business activities of biafuel as alternate fuel, business enterprises are obliged to: a. use goods and equipment that meet standards in accordance with provisions of legislations; b. use proper technicality norms; c. prioritize the utilization of domestic goods, services, equipment, technology, and engineering and construction; d. prioritize the use of Indonesian manpower by paying attention to the utilization of lcoal manpower pursuant to required standards of competence; [...].
Governance
M&E of policy implementation: 
Direct users of oil fuel not performing obligations on the use of biofuel as alternate fuel as referred to in Article 3, shall be subjected to sanctions pursuant to provisions of legislations