Govt to increase percentage of bio diesel in car fuel

The government will raise the percentage of biodiesel use as car fuel to 10 percent from 7.5 percent at present in a bid to increase the use of biodiesel in the energy mix target to at least 1 million kiloliters a year, Investor Daily reported on Friday.

Director of bioenergy at the energy and mineral resources ministry, Dadan Kusdiana, said that the planned increase in the biodiesel use should first be approved by the House of Representatives because the change would result in an increase in the bio fuel subsidy which at present reaches Rp 3,000 per litter.

He said that the change would be part of the revision of the 2013 state budget which would be deliberated with the House members in May.

?If the percentage is increased, we are optimistic the target to increase the use of bio fuel in the energy mix will reach the 1 million kiloliters target,? Dadan said.

If the percentage is raised to 10 percent, we can meet the target faster than the initial plan, he said, adding that according to the Energy Minister regulation No 32, the percentage of bio fuel use in vehicle fuel is expected to reach 10 percent by 2015.

With the new policy, the bio fuel production is expected to increase to 2.5 million kiloliters a year from the initial target of 2.2 million kiloliters . (*)