Indonesian fuel distributors to purchase 765,000kl of biodiesel

Indonesian fuel distributors Pertamina and AKR are set to purchase 765,000kl of subsidised biodiesel for the remainder of 2015.

339,000kl of the total will be purchased between August and October from five producers, including Wilmar, Eterindo, Musim Mas, Pelita Agung, and Darmex Agro.

Negotiations to supply the missing 426,000kl of fuel are undergoing between Pertamina and AKR and various producers.

The amount does not include purchases of unsubsidised biodiesel that fall outside the public service obligation remit.

Indonesia, world’s largest palm oil producer, officially launched its mandate to have a minimum of 15% blend of biodiesel in sold diesel products.

The Indonesia Estate Crop Fund, known as the CPO supporting fund, was established on 16 July to administer the collection and disbursement of levies imposed on palm oil exports and has since collected $54.3 million (€49.2 million) in levies during its first month of operation.

The collected money will be used for subsidising the price of the fuel Pertamina and AKR must pay.