Indonesia: Biofuels Annual
Indonesian palm oil-based biodiesel production is booming due to growing Indonesian demand. The rise of Indonesia’s biodiesel consumption is directly attributable to the country’s biodiesel subsidy, which under a low oil price environment since 2015 is now financed through a levy on palm oil and palm oil product exports. Post expects domestic biodiesel production to remain robust, although Indonesia’s biodiesel subsidy will be challenged by low palm oil production in 2015/16 and lower-than-expected fossil fuel prices. Post thus expects biodiesel production to reach 2.45 billion liters in 2016, a rebound from 2015, but still below record levels experienced in 2014.
