Indonesian manufacturers of four-wheeled motorized vehicles need to adjust to the Euro-4 emission standard. In March 2017 the Indonesian government ordered this through the issuance of Environment and Forestry Ministry Regulation No. P. 20/MENLHK/SETJEN/KUM. 1/3/2017 on the Standard Exhaust Emission of Euro 4-Type Motor Vehicles. These European emission standards define the acceptable limits for exhaust emissions of new vehicles.
However, it is also important that there are enough local supplies of quality fuel for Euro-4 standard engines. In case a lower standard fuel is used in a Euro-4 standard engine, then it can cause damage to the engine. To ease concerns Indonesia's Environment and Forestry Ministry stated that by September 2018 the Indonesian people can consume Euro-4 standard fuel.
Also state-owned energy company Pertamina stated that it is ready to distribute Euro-4 standard fuel across Indonesia. Adiamatma Sardjito, Pertamina's Vice President Corporate Communication, said the company already started to produce fuel that is "close to Euro-4 standard fuel" at its Balongan refinery in Indramayu (West Java).
Pertamina is also busy developing new refineries specifically for the production of Euro-4 standard fuel, while upgrading existing ones. This will be a gradual process that should be completed by 2023. Meanwhile, Sardjito said the first phase of Pertamina's refinery in Balikpapan (East Kalimantan) will be ready in 2021. This refinery will in fact be able to produce Euro-5 standard fuel. The second phase of this refinery is targeted to be completed in 2022. Pertamina will also be able to produce Euro-4 standard fuel at its refinery in Cilacap.
Meanwhile, Pertamina is also importing Euro-4 standard fuel. Therefore, though domestic production and imports, the company is convinced that it can meet domestic demand for quality fuel.
Indonesia's Late Response to European Emission Standards
Indonesia lags far behind in terms of European emission standards. While several advanced nations started to use the Euro-2 standard in 1997, Indonesia only followed suit in 2003 (and the Euro-2 standard fuel is still not widely used around the Archipelago today as many Indonesians are still using RON 88, also known as premium). And while advanced nations started to comply with the Euro-4 standard from 2005 onward, Indonesia is barely ready to introduce it in 2018.
Based on Environment and Forestry Ministry Regulation No. P. 20/MENLHK/SETJEN/KUM. 1/3/2017 on the Standard Exhaust Emission of Euro 4-Type Motor Vehicles, Indonesia will gradually adjust to the Euro-4 standard between the years 2018 and 2021.
Read more: Overview of Indonesia's Automotive Industry