In 2021, Indonesia will allocate 9.2 million kiloliters of biodiesel as originally planned
The Ministry of Energy of Indonesia said on Tuesday that Indonesia has returned to its original track and will allocate 9.2 million kiloliters (KL) of biodiesel to companies next year as originally planned.
A week ago, Indonesian National Energy Commission officials stated that due to the uncertain prospects for fuel consumption due to the COVID-19 epidemic, the allocation of palm oil biodiesel may have to be reduced to 8.5 million kiloliters next year.
The Indonesian government requires that 30% of palm oil bio-components must be blended with diesel in order to digest domestic palm oil supply and reduce dependence on fuel imports.The government sets production targets, subsidizes the price difference between palm oil and crude oil, and distributes the products to 20 biofuel companies. But this year's fuel prices have fallen, making the plan lacking economic viability. Coupled with funding issues, Indonesia was forced to postpone the implementation of the plan to blend biological ingredients to 40% (B40).
The Indonesian government expects to produce only 8.5 million kiloliters of biodiesel this year, which is lower than the planned output of 9.6 million kiloliters.
Chinese version of information sources: Oil market observation. Compile: Henan Victor Machinery Equipment Co. , Ltd.
