Indonesia pushes biodiesel production costs down 20%

In Indonesia, Bloomberg reports the Energy and Mineral Resources Ministry has managed to cut the cost of palm oil biodiesel production by 20%. Getting biodiesel down to $80 per metric ton will help to ensure that the B30 blending mandate is affordable for the country’s subsidy schemes that are primarily funded on duties levied on palm oil exports. On June 1, the levy was set at $55/metric ton. Indonesia has been desperately trying to shift its fuel market towards ever-increasing biodiesel consumption in an effort to reduce its foreign exchange expenditure on fossil fuel imports and boost self-sufficiency.