Biofuel producers delay investment plans
Tuesday, March 18 2014 - 12:34 AM WIB
A number of existing biofuel producers and new investors from France and Malaysia have decided to delay this year?s investment plans following the introduction in January of a new price mechanism, reports said on Tuesday.
Executive Chairman of the Indonesian Biofuel Producers Association (Aprobi) Paulus Tjakrawan said that the new pricing mechanism which is based on the Mean of Platts Singapore (MOPS) has been protested by producers, who prefer the previous 2010 pricing mechanism, which is based on the export reference price of crude palm oil set by the Ministry of Trade.
Paulus said that the planned new investment was supposed to increase the country?s biofuel production capacity by as much as 700,000 kiloliters per year from the existing annual capacity of 5.6 million kilo liters.
He did not disclose the names of the companies delaying the investment plans. (*)