Economics of biodiesel still questionable

PT Astra Agro Lestari, Indonesia’s biggest agriculture company by market value, is holding back on investing in a biodiesel plant unlike some rivals. “Frankly there are a lot of questions about the economics of blending palm oil with regular diesel,” Finance Director Juliani Eliza Syaftari said. Investor and government interest in biofuels has risen as crude oil prices reached US$80, making biodiesel production more economically viable. “We want to enter into biodiesel, but actually we prefer to do so with jatropha,” said Juliani. (September 13, 2006)