Indonesia launches higher blend of palm oil-based biodiesel
He was seeking to allay concerns over supply and prices, Reuters reported.
The world's top palm oil producer last year imposed various measures to control stubbornly high prices of local cooking oil, including a three-week ban on exports of the vegetable oil, shocking the global market.
The government has now launched a mandatory biodiesel with 35% palm oil content, known as B35, expanding from the current 30%.
Coordinating minister for economics, Airlangga Hartarto, said B35 would absorb some of the supply that usually goes to Europe, where the edible oil is facing some opposition due to its link to deforestation.
He said: "The B35 programme will not disrupt supply needed for (food) consumption. Domestic supply is guaranteed to be enough."
He referred to the government's request for local cooking oil producers to boost supply to the domestic market by 50% to 450,000 tonnes for the next three months, to meet rising demand.
Indonesia uses the world's highest blend of palm oil in mandatory biodiesel, aimed at reducing reliance on imported diesel and propping up demand for the versatile vegetable oil.