Indonesia looks to spread biodiesel subsidy further in light of falling prices

In Indonesia, the government is looking to reduce the amount of subsidy it pays to state-owned oil company Pertamina for blending biodiesel in an effort to spread the total subsidy amount across a larger volume, allowing it to boost the blending mandate without boosting the required budget. Palm oil prices have fallen 7% since the start of the year from four-year highs, leaving room to shift some subsidy to more volumes above the current 20% blending mandate.