Biofuel Industry News

  • The increase in domestic biodiesel usage could help reduce Indonesia's deficit

Indonesian government hopes to boost biodiesel with new measures

Aug 28 2013 Comments 0

The government of Indonesia have announced that the mandatory levels of palm oil-based methyl ester in biodiesel, will be increased. The move is being made in an effort to reduce the amounts of oil that are being imported into the country. Mandatory levels will be raised by 2.5 per cent, which could help to save money on fuel.

Biodiesel content in Indonesia will be changing once the government puts in place its change in the mandatory levels of methyl ester. Current rules state that 7.5 per cent of biodiesel products must be methyl ester, which is made from palm oil, but the new ruling will mean that ten per cent of biodiesels must be made up of this component.

It is hoped that the increase in methyl ester levels will help to reduce the amount of oil that is being imported into the country and therefore help to cut down on cost. In the first half of this year, Indonesian fuel imports cost a total of $5.8 billion (£3.7 billion). This huge cost has, in part, contributed toward the $9.8 billion account deficit that the Indonesian government had in the second quarter of the year.

The increase of crude palm oil-based biofuel in Indonesia could help to increase the demand for biofuel for companies, as well as for the domestic market. Currently half of the domestic diesel demand, which stands at 35 million kilolitres, is subsidised by the government, while the other half is not subsidised in any way. Biofuel producers are able to deliver around 3.5 million kiololitres of domestic fuel a year, but the demand for government subsidy is high, due to the non-economically viable price of the product.

It is hoped that the new move by the indonesian government will not be a replay of a similar programme that was implemented in 2006. Although, with the current loss in money throughout the country, it would appear that the government is more determined to succeed and to reduce its current deficit.    

Read comments0

Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.


Digital Edition

Petro Industry News October/ November 2017

October 2017

Fuel for Thought - Restek Wins Company of the Year ASTM News - New Standard Helps Meet Need for Hydrocarbon Impurity Testing PEFTEC Preview - Excitement Builds for PEFTEC 2017 - Det...

View all digital editions

Events

Oil. Gas. Chemistry

Nov 22 2017 Krasnoyarsk, Russia

PEFTEC 2017

Nov 29 2017 Antwerp, Belgium

Tank Storage Germany

Nov 29 2017 Hamburg, Germany

ASTM - D02 Meeting

Dec 03 2017 Houston, Tx, USA

Saudi International Lab Expo

Dec 04 2017 Riyadh, Saudi Arabia

View all events