Biodiesel, Biofuels, Crude Palm Oil, Diesel, Indonesia, Legislation, Transportation

Indonesia seeks to cut fuel subsidies via biofuels

January 15, 2008 (Mongabay) – Biofuels will make up 10 percent of Indonesia’s fuel transport consumption by 2010 under a plan announced Monday by a senior government official, according to Reuters. The initiative could ease the economic impact of fuel subsidies – currently some of the highest in the world – in Indonesia, while boosting demand for locally produced bioenergy crops including palm oil, jatropha, sugar cane and cassava.”We can’t increase prices of subsidized fuel as it will hurt consumers. But we may be able to cut consumption and replace it with biofuel,” Reuters quoted Evita Legowo, secretary at the National Biofuel Development Team, as saying at the Reuters Global Agriculture and Biofuel Summit.

Presently Indonesia spends billions of dollars subsidizing and importing oil.

Legowo said the government intends to increase bioethanol blend in gasoline to 5 percent by 2010 from 3 percent, using cassava and cane molasses as feedstock, but may keep the biodiesel blend in diesel oil at 2.5 percent due to high palm oil prices, which have more than doubled in the past 18 months.

“Biodiesel blend will stay at 2.5 percent … maybe less because we are still waiting for jatropha that we planted last year,” Legowo said.

Indonesia plans to plant 5.25 million hectares of unused land with palm oil, jatropha, sugar cane and cassava by 2010.

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One thought on “Indonesia seeks to cut fuel subsidies via biofuels

  1. I just recently attended the International ENergy Week in Singapore (November 3-7) held at the Raffles City Convention Centre’s Stamford Ballroom as organized by the Energy Market Authority and Energy Studies Institute & Bang’s Public Relations.Major issues on biofuel since it competes for agricultural lands and significant requirement for water consumption(pls note that water uses a lot of energy too for both desalination, filtration, distribution, etc.. Thus, our company, Energy Source Consulting with various partners from all over the world is bringing in the technology to increase yield and efficiency of existing Jathropa and other agricultural stock used for biodiesel. Hope we can help individuals, corporations and countries. Furthermore, we provide advanced technologies on biofuel production like cellulose tech & other complementary technologies like wind tech, hydro, hydrogen,biomass, etc.–www.energysourceconsulting.com

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