AreaIndonesia

Commodity GroupBiofuels

CommodityBiodiesel

Date01/04/2019

Policy CategoryRenewable energy

Policy InstrumentBiofuel policy

DescriptionLaunched technical trials with B100 (i.e. pure palm oil-based biodiesel), in a bid to further increase domestic uptake of palm oil amid increasingly uncertain export prospects.

NotesIn a move to further increase domestic uptake of palm oil amid increasingly uncertain export prospects, the Government launched technical trials with B100 (i.e. pure palm oil-based biodiesel), according to local media. Back in September 2018, the use of B20 (i.e. diesel blends containing 20 percent biodiesel) became mandatory throughout the country (see also MPPU Aug.’18 & Jan.’19). Industry experts pointed out that any increase in domestic biodiesel production would require higher government outlays for the subsidization of oil refining companies. To date, such subsidies have been covered entirely by a levy collected on palm oil exports at the country’s borders.