Indonesia approves subsidy mechanism for 2009

Business sales turnover in the biofuel industry is estimated to surge to 13 trillion rupiah (US$1.37 billion) per annum, following the Indonesian government’s decision to approve the biofuel subsidy payment mechanism for this year. The government’s decision will also help 22 companies, which have suspended production since mid-2008 on low production, to resume their operations. Such a low production was attributable to high raw material prices and uncertain regulations regarding biofuel projects. Last year, of the total installed capacity of 2.5 million tons, only 600,000 tons were utilized. (October 8, 2009)