REPUBLIKA.CO.ID, JAKARTA -- Energy and Mineral Resources Minister Sudirman Said has told a Parliament hearing that the fuel oil subsidy will among others be diverted to developing biofuels.

He said that beginning this year the subsidy for fuels will be diverted to the productive sectors, including biofuels.

"Ahead, fuel subsidy will increasingly be reduced because it is diverted to the productive sectors such as bioethanol and biodiesel," the minister said in working meeting with Commission VII on energy of the House of Representatives (DPR) here on Monday.

Therefore, in the draft 2015 revised budget, the ministry of energy and mineral resources has proposed additional budget from the previous Rp1,500 per liter to Rp2,000 per liter in the draft 2015 state budget.

Thus, there is an addition of Rp14.31 trillion subsidy to the 2015 state budget which was previously only stood at Rp3.09 trillion. With the addition, the subsidy for biofuel in the draft 2015 revised budget will total Rp17.40 trillion.

The government also proposed the volume of bio-mix (diesel oil mixed with 10 percent biofuel) or B10, to be increased from the previous 15.67 million kiloliters to 17.05 million kiloliters in the draft 2015 revised budget, the minister said.

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