Indonesia’s biodiesel policy shift hits 2015 consumption but will rise again in 2016

In Indonesia, the country’s change in the way it subsidizes biodiesel consumption from a direct subsidy allocated from the state budget to a levy on crude palm oil exports negatively impacted the volume of palm oil biodiesel consumed in 2015, falling to around 825,000 kiloliters from the 1.6 million kiloliters consumed in 2014. With the new B15 mandate in place, biodiesel consumption should surpass previous levels along with the associated reduction in greenhouse gas emissions.