Total and Shell required to up biodiesel blends in Indonesia

The two remaining foreign petroleum players in Indonesia have been told to increase the proportion of biodiesel mix at their petrol stations.

PT Shell Indonesia and PT Total Oil Indonesia are reportedly obligated to increase their FAME content in diesel fuel mixes to at least 10% by January 2014. Any retailer failing to hit that target will face sanctions ranging from business license revocation or suspension of operations.

‘We will inspect their petrol stations from time to time to ensure the regulation is being followed,’ director general of renewable energy and energy conservation Rida Mulyana was quoted as saying.

The regulation also requires a minimum of 10% biodiesel in diesel fuel mixes used for industrial and commercial purposes and 20% for those used in power plants.

Mulyana believes both companies only blend 1% biodiesel into their available diesel fuel at the time of writing.