Indonesia ups biodiesel subsidy from 45 cents per gallon to $1.19
Photo: Ministry of Energy and Mineral Resources, Republic of Indonesia
February 6, 2015
BY Ron Kotrba
The Indonesian House of Representatives has approved an increase in the nation’s biodiesel sales subsidy from Rp 1,500 per liter to Rp 4,000 per liter (44.7 cents per gallon to $1.19 per gallon), according to a press release from the Ministry of Energy and Mineral Resources, Republic of Indonesia.
The ministry had proposed an increase in the biodiesel subsidy from Rp 1,500 per liter to Rp 5,000 per liter (44.7 cents per gallon to $1.49 per gallon) but the energy ministry said the House commission overseeing energy (Commission VII) assessed the rate of Rp 5,000 per liter proposed by the energy ministry as “too big.” The commission made this determination after considering prevailing international biodiesel prices, the ministry said.
The ethanol subsidy increase from Rp 2,000 per liter to Rp 3,000 per liter (59 cents per gallon to 89 cents per gallon), as proposed by the ministry, was also approved.
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Indonesia has a strong biofuel use program in place, mandating 10 percent biodiesel and 3 percent ethanol.
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