BPDP Confirms Budget Readiness for B50 Programme and Fishermen's Diesel Subsidy

The Oil Palm Plantation Fund Management Agency (BPDP) has confirmed its budget readiness to fund the implementation of the 50 percent biodiesel programme (B50) and diesel subsidies for fishermen. “Regarding budget readiness, BPDP is ready to support it,” said BPDP Downstream Sector Fund Distribution Director Muhammad Alfansyah in Jakarta on Wednesday. Alfansyah further estimated that the funding requirement for the biodiesel programme this year would reach approximately Rp32.3 trillion. Nevertheless, he assured that supporting programmes in the palm oil sector would continue and not be disrupted, including the smallholder palm oil replanting programme (PSR), facilities and infrastructure programme, human resource development, and research funding. “As I mentioned earlier, PSR, infrastructure, research, and human resources must not be left without funding; it absolutely must be there,” Alfansyah stated. In addition to the B50 programme, he said BPDP is also preparing the necessary budget for 400,000 kilolitres of diesel for fishermen. He noted that the budget prepared is less than Rp1.5 trillion, based on the assumption that the subsidy to be borne by BPDP is Rp3,600 per litre multiplied by the allocated diesel volume of 400,000 kilolitres. President Prabowo Subianto has instructed that a special fuel price of Rp15,000 per litre be provided for fishing entrepreneurs operating vessels sized between 30 and 200 gross tonnage. “Because these fishing entrepreneurs need to be given a special price, it was discussed earlier that the agreed price is Rp15,000 per litre,” said Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday. He explained that the price of non-subsidised fuel had previously reached Rp21,300 per litre. Meanwhile, fishermen with vessels under 30 GT already receive subsidised fuel at Rp6,800 per litre. According to Airlangga, the average domestic diesel production cost is around Rp18,600 per litre. The difference of approximately Rp3,600 per litre will be financed through BPDP funds, not the State Budget.