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Indonesia to miss targets.

Indonesia is set to miss its ambitious targets on the use of biodiesel this year due to logistical and infrastructure problems, government officials and analysts said, potentially weighing on the price of palm oil.Southeast Asia's biggest economy and the top producer of tropical palm oil introduced a regulation last August boosting the use of palm-based biodiesel, in a move to cut its oil import bill.Jakarta's energy ministry raised the minimum bio content in diesel fuel used for transport to 10 per cent, up from 3-10 per cent previously. For the power industry, the minimum was doubled to 20 per cent.The government has set a biodiesel consumption target in 2014 of 4 million kilolitres, of which 1.56 million kilolitres is for subsidised diesel for vehicles, with the rest to used by power plants and non-subsidised sectors such as mining and plantations. But by end-May, only 447,000 kilolitres had been used in the subsidised diesel sector, Dadan Kusdiana, director of renewable energy and energy conservation at the mining ministry, told Reuters by text. He was unable to give data for other sectors.Kusdiana said the figure for subsidised diesel was forecast to rise to 1.34 million kilolitres by the end of the year. Analysts, however, have been sceptical the government could meet its targets due to issues in making biodiesel available throughout the island archipelago, particularly in more remote eastern provinces.

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Publication:Oil & Gas News
Geographic Code:9INDO
Date:Jun 30, 2014
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