Govt won't give subsidy to biodiesel producers

The government will not provide subsidy to state enterprises or private firms, which are producing and selling biodiesel fuel, Investor Daily Indonesia newspaper reported in its Tuesday edition.

Ministry of Energy and Mineral Resources' expert staff member on information and communications R.Sukhyar said any body can produce biodiesel as long as it fulfills the standard set by the government.

"However, since it is very difficult to regulate the business of this kind of fuel, the government decided that it (biodiesel) uses market price," Sukhyar told reporters in Jakarta on monday.

He also added that the government will not give any incentives to develop this new energy source.

"Because, the process is very cheap and there is no need for certain technology.The government will not give any incentives," Sukhyar said. (*)