Indonesia: Biofuels Annual

  |   Attaché Report (GAIN)

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

While the biodiesel industry has grown dramatically since 2006, ineffective policies and insufficient supply chain infrastructure have caused biodiesel use to fall far short of aggressive mandates (use goals) and the nascent fuel ethanol market to completely disappear. Regulations issued in 2015 introduce a new support scheme and pricing formula for biodiesel and new biofuel mandates, changes which are expected to spur further growth for biodiesel. At the same time, low petroleum prices have weakened foreign demand for biodiesel and are slowing Indonesian biodiesel exports. In a few short years, the biodiesel economy has shifted from export driven to one driven by domestic demand. No changes in the fuel ethanol market are foreseen through 2016.

Indonesia: Biofuels Annual

East Asia and the Pacific, Indonesia
Biofuels

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