Indonesia must more than double biodiesel subsidies but is sticking to B20

In Indonesia, the government is expected to move ahead with its B20 blending mandate despite low oil prices. The amount of subsidy required so that oil marketers keep blending at the mandated level has more than doubled since its implementation last year but that isn’t likely to deter the policy’s continued existence. The volume of biodiesel to be subsidized will be lower than planned, however, in order to keep to the budget. The subsidy is paid by a levy on crude palm oil and palm oil product exports.