In Indonesia, the government continues to roll out new policies in hopes of stimulating the local biodiesel industry, this time by lowering the price index for transforming CPO into biodiesel to $125 per metric ton, down from $188 per ton. The move is meant to make biodiesel cheaper and therefore encourage Pertamina to buy more.
In Indonesia, the government plans to levy $50 per metric ton on palm oil exports and $30 on olein shipments in order to pay for domestic blending subsidies. The levies will be in addition to export taxes that are currently set at zero but could be invoked again at between 7.5% and 22.5% when prices […]
In Indonesia, the government is again coming to the rescue of the palm oil industry by potentially introducing tax breaks for producers, allowing it to offset the budgetary requirements that would be needed by a new 15% biodiesel blend proposed last week, up from the current 10%. The 2015 budget won’t reach to covering the […]
In Indonesia, the country’s energy and minerals ministry has altered the pricing benchmark used in tenders to supply biodiesel to the state-owned oil company Pertamina to crude palm oil prices rather than diesel prices in an attempt to further boost biodiesel consumption. The new benchmark is in effect for tenders as of March 1.
In Indonesia, despite the government more than doubling the CPO biodiesel blending subsidy, low oil prices may keep the country from keeping its blending B10 mandate of 1.7 billion liters. About 1.5 million metric tons of CPO would be needed to reach the mandate, up from 800,000 tons in 2014, but some analysts fear that […]
In Indonesia, excitement over the 31 cents per liter subsidy for palm oil biodiesel has already begun to fade in the face of falling palm oil demand for products aside from biodiesel such as food and cosmetics. Palm oil futures jumped 10% on news of the subsidy but three weeks later are down nearly 5% […]
In Indonesia, the government’s move to triple biodiesel subsidies is likely to boost demand but not enough to compensate for lower diesel prices that have significantly eroded demand. Palm oil prices have rallied 7% this month since the government announcement but the likelihood that low diesel prices will continue to weigh are likely to push […]
In Indonesia, the Philippines’ Roxas Holdings is looking at its first foreign venture where it would invest in a sugar mill and ethanol plant. The deal would be a joint investment with Hong Kong-based First Pacific. The company is looking for a 40/30/30 revenue split between sugar, ethanol and co-generation. Currently only 15% of Roxas’ […]
In Indonesia, the country’s Forum for Environment believes that the new policy boosting subsidies for biodiesel will increase deforestation as a result of increased demand for palm oil. The organization wants to see the funds from the subsidy instead go towards solar, wind and community-based environmental projects that have economic development impacts on communities rather […]
In Indonesia, a parliamentary panel has decided the subsidy for biodiesel should be 32 cents per liter, compared to nearly 40 cents previously proposed. The ethanol subsidy will remain at the 23.5 cents per liter proposed. The panel said the proposed subsidy for biodiesel was too high considering market conditions, and that the budget committee […]