Indonesian government proposes jump in biodiesel subsidies


(Photo: Robert Galbraith, Reuters)

Indonesia's government plans to introduce a more than threefold increase in its biodiesel subsidies, an energy ministry official said on Tuesday, a move aimed at protecting Indonesia's fledgling biofuel industry against lower crude prices.

An increase in subsidies could potentially boost demand for palm oil, although the government plan still has to get parliamentary backing before becoming law.

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