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Indonesia govt plans to set aside Rp17 trillion for biodiesel subsidy in next one year

JAKARTA ( – The Indonesian government considers allocating Rp17 trillion subsidy for biodiesel in the perio of November 2016-November 2017 as part of the government’s drive to implement 20% mandatory biodiesel (B20) use, a government official said.

Director Geenral for New, Renewable and Energy Conservation at the Energy and Mineral Resources Ministry (ESDM) Rida Mulyana said the government plans to widen the subsidy for biodiesal usage starting from next month (November).

The move, if realized, will absorb larger volume of biodiesel by the government through Pertamina. The program requires Pertamina to blend certain portion of biodiesel in every litter of its fuel sold to consumers.

The program is part of the government’s drive to increase contribution of renewable energy in the country’s energy mixed and therefore help reduce emissions.

Next year, Rida said, the government aims to purchase 5.5 million kilo liters (KL) of biodiesel, of which 3 million KL of biodiesel is mixed with subsidized fuel and 2.5 million KL with non-subsidized biodiesel.

As of August this year, the government has bought 1.95 KL of biodiesel from private sector, of which 1.74 million KL were allocated for subsidized fuel and 205,302 KL for non-subsidy. The government targets to allocate 3.2 million KL of subsidized biodiesel this year and 2 million KL for non-subsidy. (*)

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