Indonesia backtracks on 2020 fuels position
22 August 2019
Indonesia’s Ministry of Transportation has backtracked on its decision at the end of July to exempt domestic vessels in Indonesian waters from the impending 2020 fuel requirements.
Reuters has reported that Indonesian-flagged ships will comply with new low-sulphur fuel rules that start next year, the country’s Ministry of Transportation said on Tuesday, after earlier saying more time was needed to meet the requirement.
In a statement, Sudiono, the Transportation Ministry’s director of shipping and maritime affairs, said the rule will be applied to “all Indonesian-flagged vessels starting 1 January 2020, both for domestic and foreign shipping.” Reuters reports that a ministry spokesman declined to comment on the change but said there will be a separate statement laying out the government’s considerations.
In July, Sudiono said that one of the reasons for Indonesia not enforcing the low-sulphur rule was because state oil company Pertamina still produces large amounts high-sulphur fuel oil from its refineries.
The Transportation Ministry now say that Pertamina will produce 380,000 kilolitres per year of fuel with a maximum sulphur content of 0.5%. From the start of next year, the company will set up sales points for the low-sulphur fuel in Jakarta’s main sea port and from a floating storage off Balikpapan in East Kalimantan province.