Indonesia’s biodiesel output to rise by 17%

Indonesia’s palm oil-based biodiesel production is expected to increase by nearly 17% in 2011, boosted by growing domestic consumption, an industry official said. The biodiesel industry is expected to play an important role in absorbing growing palm oil output in Indonesia, but confusion over subsidy and rising feedstock prices have made it difficult for the industry to expand. Indonesia expects to produce 700,000 kiloliters of palm oil-based biodiesel in 2011, up from an estimated 600,000 kiloliters this year, but output is still far below the total capacity of nearly 4 million kiloliters, said Immanuel Sutarto, vice chairman of the Association of Indonesian Biofuel producers. (November 15, 2010)