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. Continue reading