Indonesia seen not importing much ethanol-blended gasoline despite policy change

June 4, 2020 |

In Indonesia, Platts reports that despite the country changing its policy recently to allow for imports of US-origin ethanol-blended gasoline, a surge in demand isn’t expected. Freight costs from the US has been flagged as one of the key barriers to increased ethanol-blended trade with Indonesia as freight from the region is much lower, which would offset any potential savings in imports from the US. Indonesia has a 10% ethanol blending mandate dating back to 2006 but it has never been implemented.

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