Indonesian government forces Shell, Total to boost biodiesel mix

PT Shell Indonesia and PT Total Oil Indonesia will have to increase the proportion of biodiesel in the diesel fuel mix they sell at their gas stations to at least 10 percent by January next year or leave the business.

Shell and Total, the only two remaining foreign players in the downstream petroleum sector in Indonesia, were obligated to boost the fatty acid methyl ester (FAME) content in their diesel mixes, said Energy and Mineral Resources Ministry director general for renewable energy and energy conservation Rida Mulyana.

“We will inspect [their] gas stations from time to time to ensure they follow the new regulation,” he said over the weekend, referring to the 2013 Energy and Mineral Resources Ministerial regulation issued on Sept. 1 mandating the change.