INDEF executive director Esther Sri Astuti said B50 implementation risks raising vehicle maintenance costs.
Esther Sri Astuti made the remarks on Monday in Jakarta. She explained that older diesel engines are not designed for high vegetable oil blends and will require additional maintenance.
In the mining sector maintenance costs could rise by as much as 10 percent. The hygroscopic nature of the biofuel also demands sealed storage to prevent water absorption.
Energy Minister Bahlil Lahadalia said B50 would cut diesel imports by 4 million kiloliters annually and save Rp 157.28 trillion in foreign exchange. The policy is projected to absorb 2.21 million workers.
