Indonesia makes biofuels for the poor

The Indonesian government hasissued two important policies for the local biofuel industry. Last year, the Energy and Mineral Resources Ministry mandated the local industrial and transportation sectors to use biofuels and recently has decided to provide subsidies for the sales of biofuel. The transportation sector as of January 2009 is required to use oil-based fuels blended with 1% biofuel, while industries and power plants must use a biofuel blend of between 0.25 and 2.5%. Recently, the government and House of Representatives agreed to set aside a subsidy of Rp831 billion (US$ 70 million) or Rp1,000 (US$0.09) per liter for biofuel sales. (March 23, 2009)