The Palm Scribe

Govt inks deal with 19 biodiesel producers

The Jakarta Post, 28 May 2018

The government recently inked its sixth incentive agreement with 19 biodiesel producers as part of its effort to ensure the sustainability of oil palm plantations and to maintain the country’s energy security. The Oil Palm Estate Fund Management Agency (BPDPKS) said on Friday (May 25) that a total volume of 1.46 million kiloliters (KL) would receive the incentive from May to October. The volume was set in accordance with the national need for diesel. As of April 2018, the agency had disbursed Rp24.7 trillion ($1.7 million) for 5.88 million KL of biofuel from August 2015. The agency said the disbursement had managed to save up to Rp30 trillion from diesel fuel imports. BPDPKS Fund Disbursement Director Edi Wibowo said that for 2018, it had set an incentive budget of Rp9.8 trillion with the assumption of the Indonesian Crude Price (ICP) at $60-$80 per barrel of oil. However, the target is lower than last year, which stood at Rp11 trillion.

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