Climate Changed
Indonesia to Expand Biofuel Mandate to Railways, Power Plants
- Higher biodiesel use to cut crude oil imports by $3.5 billion
- Government to expand 20 percent blending from next month
Photographer: Dimas Ardian/Bloomberg
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Indonesia will widen a biofuel mandate to cover railways and power plants starting next month as the world’s largest palm oil producer seeks to trim stockpiles and save billions of dollars in fossil fuel imports.
The railways and electricity generators will need to use fuel blended with 20 percent palm biodiesel from Sept. 1, said Rida Mulyana, director-general of new and renewable energy at the Energy and Mineral Resources Ministry. The government had earlier said the expanded mandate will also include military and mining vehicles. The mandate will help the country cut crude oil imports worth about 50 trillion rupiah ($3.5 billion) annually, he said.