Biofuels for the poor

23 Mar 09

After being criticized for being slow to develop the local biofuel industry, the Indonesian government has finally issued two important policies; first, a decree issued last year obliging industries and the transportation sector to use biofuels; and second, its recent decision to provide subsidies for sales of the fuel. The decree, issued by the Energy and Mineral Resources Ministry in September last year, requires the transportation sector to use oil-based fuels blended with 1 percent biofuel (as of January this year), while industries and power plants must use a biofuel blend of  between 0.25 and 2.5 percent. Next year, the biofuel content will be increased to between 2.5 and 3 percent for transportation, 5 percent for industry, and 1 percent for power plants. Recently, the government and House of Representatives agreed to set aside a subsidy of Rp 831 billion (about US$ 70 million) or Rp 1,000 per liter for biofuel sales.
http://www.thejakartapost.com/news/2009/03/23/biofuels-poor.html

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