DESPITE B40 DELAYS, MGRO WILL NOT SIGNIFICANTLY REDUCE MARKET DEMAND
04 February 2021
The government through the Ministry of Energy and Mineral Resources (ESDM) decided to postpone the continuation of the mandatory 30 percent biodiesel (B30) program to 40 percent biodiesel (B40) this year.
Responding to this, the Corporate Secretary of PT Mahkota Group Tbk (MGRO), Elvi said the postponement of the B40 mandatory program was due to the uncertainty of high national economic conditions.
“In addition, the price of palm oil or CPO is also still fluctuating and a comprehensive assessment of the mandatory B40 program has not been completed. So that this is the main factor for the government to postpone,” Elvi said when contacted by KONTAN, Wednesday (3/2).
However, the palm oil issuer believes that the B50 program will continue. MGRO will also fully support the sustainability of the program, because the previous program was clearly able to reduce carbon emissions and save foreign exchange.
Meanwhile, although the government postponed the B40 program, MGRO revealed that there was no direct impact on the company. This is because the company does not directly produce biodiesel but only sells palm oil to companies or biodiesel producers.
“Although there is a delay this year, it does not reduce market demand because it can still be allocated for export or to produce other derivative products,” he concluded.