Pertamina Calls for Standardized FAME Procurement Rates

Pertamina Patra Niaga wants Indonesia to set one standardized procurement rate for fatty acid methyl ester, or FAME, as the country moves to implement B50 biodiesel.

The company says its supply sources are spread across Indonesia, while Pertamina must deliver FAME to regions separated by different distances. FAME sourced in Sumatra, for example, may need to reach markets in Sulawesi or Kalimantan. Those distances affect procurement and distribution costs.

Mars Ega Legowo Putra, president director of Pertamina Patra Niaga, said the company has a particularly large FAME requirement because it is the biggest supplier of Biosolar B50. Pertamina therefore obtains FAME from multiple locations to meet distribution needs across the country.

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We hope there will be equal treatment because Pertamina Patra Niaga is not the only business entity distributing or marketing Biosolar B50.

“We hope there will be equal treatment because Pertamina Patra Niaga is not the only business entity distributing or marketing Biosolar B50,” Mars told Commission XII of Indonesia’s House of Representatives in Jakarta. He proposed one weighted price that would apply equally to Pertamina and other companies distributing B50 fuel.

“We hope there will be one rate that can be standardized and set by the government,” he said. The proposal remains under discussion with the Energy and Mineral Resources Ministry, particularly its Directorate General of New, Renewable Energy and Energy Conservation. The government has welcomed the proposal, Mars said.

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We hope there will be one rate that can be standardized and set by the government.