Indonesia: Biofuels Annual

  |   Attaché Report (GAIN)   |   ID2021-0027

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Office of Agricultural Affairs, Jakarta   |   (011-62-21) 3435-9161

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Indonesia: Biofuels Annual

Indonesia has maintained its nationwide biodiesel program with a high on-road blending rate average of 30 percent nationwide since 2020, despite the financial challenge of supporting a widening price spread between palm oil and diesel prices during the COVID-19 pandemic. After facing significant shortfalls in 2020, the CPO Fund subsidy program has generated record revenue as a result of high global palm prices during the first semester of 2021. Biodiesel exports are forecast to remain low due to export taxes, COVID-impacted demand for diesel in Europe, and a CPO-diesel price spread that has sharply curtailed China’s discretionary demand.

East Asia and the Pacific, Indonesia
Biofuels

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