Indonesia’s ‘Toothless Mandate’ for Biofuel Hurting Palm
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Biodiesel policies in Indonesia will determine the direction of palm oil prices in the next 12 months as output climbs to a record in the biggest producer, according to Dorab Mistry, director at Godrej International Ltd.
The government should impose financial penalties for non-compliance with its mandate, Mistry said in remarks prepared for a conference in Bandung today. Failure to enforce the rules will mean that palm will continue to trade between 2,200 ringgit ($652) a metric ton and 2,300 ringgit, he said.