Indonesia’s Pertamina changes benchmark pricing policy for the worse

In Indonesia, the country’s state-owned oil company Pertamina has changed its pricing formula for buying biodiesel during its most recent tender where it bought 6.6 billion liters of biodiesel during the next two years. For the past three years, the national biodiesel producers association as been working with the government to get the benchmark price to include the costs of feedstock, methanol and other costs, or to at least include a premium over the export benchmark price to take into consideration transportation and related costs, but this new pricing policy appears to have taken a step backwards rather than forwards.