Pertamina asks for biofuels incentives

Indonesian state-owned oil and gas company Pertamina has asked the government to provide incentives for biofuels development in a bid to compete with the country’s subsidized fossil fuel price. “We need the government’s incentives on biofuels development, whether in the form of tax incentives, investment tax holidays or other forms,” Pertamina Trading and Marketing Deputy Director Hanung Budya said. Pertamina currently sells biodiesel called BioSolar (a 5% biodiesel blend) at Rp4,300 per liter (US$0.46/liter), which is the same price as subsidized diesel fuel.  Another biofuel called BioPremium, a mixture of 5% ethanol and 95% RON 88 gasoline, is sold at the same price as subsidized gasoline, at Rp4,500 per liter (US$0.48/liter). (February 19, 2007)