REPUBLIKA.CO.ID, JAKARTA -- Head of Investment Coordinating Board (BKPM), Mahendra Siregar said that palm oil investment in Indonesia was quite high after new biodiesel rule implemented by government. The figure increased to four billion USD.

"There are at least 58 companies, which want to build biodiesel processing plant. With investment value of four billion USD, it has production capacity of 12 million kiloliters (kl)," Siregar said recently.

The production capacity will continue to increase compared to 5.6 million kl today. However, biodiesel consumption in domestic market is still low despite the high palm oil production. The need of biodiesel in Indonesia has not been high. The consumption reaches 2.5 million kl, while the rest exported.

He appreciated PLN concrete steps to reduce the use of fuel for electricity power needs and switching it to biodiesel.

Government with the new regulation pushes down diesel fuel imports by raising the proportion of biodiesel in fuel from current 2.5 percent to at least 10 percent, while also making the fuel blending requirement mandatory. The regulation aims to support the economic stimulus package to spur economic growth and stabilize the weakening rupiah. Aldian Wahyu Ramadhan/Mutia Ramadhani

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