Pertamina Requests Uniform FAME Procurement Tariffs

PT Pertamina Patra Niaga has requested that the government standardise procurement tariffs for Fatty Acid Methyl Ester (FAME) to support the smooth implementation of B50 biodiesel. This proposal arises because FAME supply sources are scattered across various regions, whereas Pertamina must distribute the product to numerous areas with differing distances.

The President Director of Pertamina Patra Niaga (PPN), Mars Ega Legowo Putra, stated that Pertamina is one of the business entities with a significant requirement for FAME, as it is the largest supplier of B50 Biosolar. This situation requires Pertamina to procure FAME from various locations to meet distribution needs throughout Indonesia.

“We hope for equal treatment because Pertamina Patra Niaga is not the only business entity distributing or marketing B50 Biosolar products,” said Mars during a meeting with Commission XII of the Indonesian House of Representatives (DPR RI) at the Parliament Complex, Senayan, Jakarta, on Tuesday (8/9/2026).

He illustrated that Pertamina may procure FAME from Sumatra to subsequently distribute to Sulawesi or Kalimantan. The difference in distance between the supply source and the sales region significantly affects the procurement and distribution costs of FAME.

Consequently, Pertamina proposes a single weighted price to be applied equally to both Pertamina Patra Niaga and other business entities distributing B50 Biosolar. According to Mars, such a policy is necessary to ensure that competition in FAME procurement remains fair.

“We hope there will be a single tariff that can be standardised and established by the government,” he added.

Mars noted that the proposal is currently under discussion with the Ministry of Energy and Mineral Resources (ESDM), specifically the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE). He stated that the government has welcomed the proposal.