Biofuel producers complain about govt's inconsistency

Biofuel producers have voiced concerns over the inconsistency of the government to create biofuel market in Indonesia, saying they now prefer exporting their products due to the inconsistency, Kompas daily reported on Friday.

 

“Biofuel is a national program but regulation (over the fuel) remains unclear. The government has promised to abolish value added tax (for the fuel) and fuel tax for vehicles (using the fuel), but the promise remains empty,” said Paulus Cakrawan, director of Indo Biofuel Duposa in Jakarta on Thursday.

 

The low price of biofuel in the country have encouraged producers to export their production. “Domestic sales are subject to VAT as high as 10 percent, while export tax is only 1.5 percent,” said  Paulus.

 

The government launched a program of developing biofuel in the country last  year. It has even established a task force to realize the program and invited many investors to produce biofuel in the country, promosing them a lot of incentives. (*)