Crude Oil’s Collapse Seen Causing Indonesia to Miss Biofuel Goal

Indonesia’s goal of boosting use of biodiesel made from palm oil by more than doubling subsidies is being threatened by the slump in crude prices. Consumption of subsidized palm biodiesel may miss the 1.7 million kiloliter target for 2015, according to Derom Bangun, chairman of the Indonesian Palm Oil Board. The biggest producer of palm oil would need 1.5 million metric tons to meet that goal, he said. That compares with 800,000 tons used last year, PT Mandiri Sekuritas, a broker in Jakarta, estimates.»