AreaChina (Mainland)
Commodity GroupBiofuels
CommodityBiodiesel
Date01/06/2017
Policy CategoryTrade
Policy InstrumentBilateral cooperation
DescriptionConducted bilateral talks to explore the possibility of i) Indonesia assisting China in its efforts to raise domestic biodiesel consumption, and ii) China investing in Indonesias downstream palm oil processing sector.
NotesAccording to media sources, representatives from the two countries discussed about the possibility of Indonesia supporting China in its goal to raise domestic biodiesel consumption. Reportedly, Indonesia is ready to cooperate with China, whether by supplying finished biodiesel, crude palm oil (as feedstock for biodiesel production), or the technology required to produce biodiesel. At the same time, Indonesia also invited China to invest in Indonesias downstream palm oil processing sector. Based on Chinas 13th Five-Year-Plan, domestic biodiesel consumption would climb to 2 million tonnes by 2020 from todays level of less than 0.5 million tonnes. In the case of Indonesia, on the other hand, the biodiesel market is more mature and the industry is faced with excess production capacity hence the search for new export markets.
