The government has estimated Rp 46 billion in additional subsidy for the B30 biodiesel programme this year. The funds will be sourced from palm export levy.

According to the Ministry of Energy and Mineral Resources’ Director-General of Renewable Energy and Energy Conservation Dadan Kusdina, the funds will be sourced from palm export levy and will not affect the State Budget.

Although Mr Kusdina did not specify the prices of palm going forward, he said he remains optimistic that the subsidy funds will be available. “We need approximately Rp 46 trillion.Inshallahthe money will be available from palm levy revision,” he told a press conference on Thursday (14/1).

According to Mr Kusdina, the subsidy estimate uses an assumed biodiesel absorption volume of 9.2 million kilolitres (kl) and the Rp 5,000 per litre price difference between palm oil and diesel. In 2020, B30 biodiesel absorption in Indonesia reached 8.40 million kl, 88.6% of total allocation of 9.55 million kl.