Indonesia soon to mandate biofuel use

The Indonesian government will impose a new regulation in October demanding manufacturing companies to use at least 2.5% biofuels, according to local media. Al Hilal Hamdi, head of the national team for biofuel development, said the upcoming regulation would also give a degree of certainty for biofuel producers through the creation of demand for their products, such as biodiesel and bioethanol. To prepare for the implementation, the government would cooperate with fuel producer-retailers to work on securing the supply of biofuel, he said. “These companies will blend the 2.5% biodiesel fuel with diesel fuel before they sell it to the industries,” Al Hilal said. “The main purpose of the regulation is not to provide a cheaper fuel source, but to diversify sources of energy and to support the biofuel industry,” another team official, Evita H. Legowo said. As of June 2008, the country’s annual bioethanol production capacity reached 192,349 kiloliters a year. (July 10, 2008)