Indonesia will increase the minimum biodiesel content in automotive diesel fuel to 15% from 10%, Sofyan Djalil, coordinating minister for economics, said.
The move is part of a set of government regulations aimed at narrowing the country’s current account deficit.
Djalil said he expected the energy ministry to issue the regulation, which would take effect next week.
Indonesia missed last year’s biodiesel targets, largely due to logistical and infrastructure problems, but the government wants to give its biofuels industry a boost and recently introduced subsidies to boost biofuel use.
Total estimated production of biodiesel is seen at about 3.4 million kiloliters this year.