Biofuel consumption target unlikely to be met

This year?s biofuel consumption target of 3.9 million kilo liters is unlikely to be met due to belated absorption by state-owned oil and gas firm PT Pertamina, Bisnis Indonesia reported Friday.

Dadan Kusdiana, a director at the palm oil fund, was quoted as saying that consumption of fatty acid methyl ester (FAME), a palm oil-based biofuel, is estimated to only reach 750,000 kl this year, or 19.2 percent of the 3.9 million kl target.

He said that the original target was made based on the assumption that absorption of the fuel by Pertamina and industries started April 1. The government in March introduced a mandatory 15 percent biofuel blending into diesel fuel, up from 10 percent previously.

Pertamina Marketing Director Ahmad Bambang acknowledged that the company resumed distributing the biofuel on August 18 after suspending it due to the crude oil price drop. ?This year, probably it would only be 799,000 kl because we only have about four months left to market it,? he said. (*)