The Palm Scribe

Biodiesel mandatory policy to be expanded to all sectors

Investor Daily, 5 June 2018

The government will gradually expand the biodiesel mandatory policy to all sectors. It will start with the mining sector in June-July 2018 period. Meanwhile, the Indonesian Oil Palm Estate Fund (BPDPKS) has allocated up to Rp9 trillion for biodiesel incentives this year, which cover three million kilolitres for subsidised diesel and power plants, 200,000 kilolitres for non-subsidised program and 20,000 kilolitres for trains. Energy and Mineral Resources Ministry Economy Natural Resources Economy Expert Staff Dadan Kusidana said that the diesel is mixed with fatty acid methyl esters (FAME) that are derived from palm oil. Indonesia’s palm oil production reaches 38 million tonnes with 11 million tonnes consumed domestically and the rest exported. Thus, the amount of palm oil is sufficient to support the biodiesel mandatory policy.

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