Indonesia’s Pertamina initiates third biodiesel tender

Indonesia's Pertamina is set to offer a third tender to buy palm oil for biodiesel blending, before the end of April.

In August 2013, the world’s biggest producer of palm oil introduced a new regulation, targeting the increased burning of palm-based biodiesel. The move indicates the nation’s desire to up its alternative fuel usage, while cutting its oil import bill in the process. 

Pertamina, a state-owned firm, will release tenders, offering a total of 5.3 million kilolitres of palm-based biodiesel for 2014 and 2015.

Ali Mundakir, the company's vice president of corporate communications, commented: 'We have procured 2.381 million kilolitres through two tenders or 45% of the target. To procure the rest, we plan to hold a third tender in March or April.'

Singapore's Wilmar International and Musim Mas are two of the palm firms on the cusp of winning Pertamina's tenders. No specific amounts have been given at this time.