REPUBLIKA.CO.ID, JAKARTA -- PT Pertamina (Persero) said it consumption of fatty acid methyl ester (FAME) could reach 5.14 million kiloliter to be use for bio-diesel in 2016.

Vice President for Corporate Communication of the state oil and gas company Wianda Pusponegoro said the consumption target for FAME grew significantly from only around 1 million tons in 2015.

The increase followed the rise in mandatory use of FAME in bio-diesel from 15-25 percent at present to 20-30 percent, Wianda said here on Wednesday.

She said with the increase in the use of FAME Pertamina save more foreign exchange in the import of automotive diesel oil.

In 2016, the country's consumption of bio-diesel, called Biosolar ( diesel containing FAME) reached 24 million kiloliters, up from only an estimated 5.5 million kiloliters.

In 2014, FAME consumption for Pertamina totaled 1.5 million kiloliters to be mixed in 13.6 million kiloliters of Biosolar.

The FAME consumption is for Biosolar - subsidized, non-subsidized and for state electricity company PLN.

Since 2009, Pertamina has distributed Biosolar with mandatory FAME ratio of 7.5 percent or B-7.5.

With the use of more FAME , Pertamina could reduce the need for imported automotive diesel (ADO).

With the decline in the oil price in the world market, the buying price of FAME by Pertamina is also low falling below the real market index price (HIP) resulting in marketing problem for Biosolar in 2015.

The FAME buying price by Pertamina is based on gas oil HIP on a formula set by the government.

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