ESDM Will Receive Penalty to Pertamina Etc Due to Negligence in Running B20.

PojokPos. The Ministry of Energy and Mineral Resources (ESDM) will issue a notice of fines to biofuel producers and fuel oil suppliers who do not carry out the obligation to distribute B20 wholeheartedly. One of the letters will be sent to PT Pertamina (Persero).

The letter is posted next week. Based on ESDM Minister Regulation Number 41 of 2018 concerning the supply and utilization of biodiesel biofuel in the framework of financing by the Palm Oil Plantation Fund Management Agency (BPDP), fuel distributors who do not mix and / or biodiesel producers who cannot provide methyl fatty acid Esters (fame) will be fined IDR 6 thousand per liter.

Director General of Oil and Gas of the Ministry of Energy and Mineral Resources, Djoko Siswanto, revealed that there are six business entities that will be subject to sanctions, consisting of two fuel distributor business entities and four biodiesel producers. He mentioned that one of the fuel suppliers who would be sanctioned was Pertamina.

The fine is imposed based on the results of the ESDM Ministry's verification. Based on the calculations of the Ministry of Energy and Mineral Resources, sanctions are used for violations committed during the September-October period. The potential reaches hundreds of billions.

"This is a fine for September-October. Not up to Rp500 billion," Djoko said after attending a coordination meeting at the Office of the Ministry of Economic Affairs on Friday.
However, according to Djoko the potential for fines could increase above Rp500 billion if it took into account the November period.

Djoko revealed that after the letter was sent, the relevant business entity had the right to file an appeal or object to the fine imposed. If the company can prove the reason the business entity does not channel B20 into the category not subject to fines, the company will be free from fines.

"We will send a letter next week. If you object, please write it down for us to check," he explained.

Separately, Chairperson of the Indonesian Biofuel Producers Association (Aprobi) MP Tumanggor said biodiesel producers were ready to pay fines if violations were found according to the provisions. Fines, continued Tumanggor, are only imposed on the volume of biodiesel that is not channeled.
"The data from the ESDM Ministry will be adjusted to the data of BBM suppliers and biofuel producers, all will be seen," he said.

According to Tumanggor, biodiesel producers can fail to deliver biodiesel to order because of several factors. For example, biodiesel orders from BBM suppliers are tight, weather conditions, and ship preparedness constraints.

Although he has not received an official letter from the government, Tumanggor estimates that the amount of fines that will be imposed by the government may only be around IDR 25 billion or not up to hundreds of billions.
In the future, Tumanggor assesses that the fine to the biofuel distributor will decrease given the number of points to Pertamina has been reduced from 112 to 25 points starting January 1, 2018.

The same thing was also revealed by Operation Supply Chain Pertamina Manager Gema Iriandus Pahalawan. Gema said the company was ready to pay a fine after verifying data with the government.
"Those who determine whether they are worthy or not deserve to be subject to sanctions from the government," Gema said.

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