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BPDP, biodiesel producers sign up for 1.53 KL
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Workers plant oil palm seedlings at a palm plantation in Kapuas Hulu, West Kalimantan. (Antara/Andre)
T
he Indonesian Oil Palm Estate Fund (BPDP) and biodiesel producers have signed a contract to produce 1.53 million kiloliters of biofuel between May and October this year for oil and gas companies Pertamina and petroleum and chemical distributor PT AKR Corporindo.
"Compared with last year, the number of companies has increased from 11 to 15," BPDP president director Bayu Krishnamurthi said on Tuesday.
The mandatory biodiesel mix is part of the government's policy to encourage the use of non-fossil fuels. Under the program, biofuel -- mostly made of palm oil -- is expected to replace diesel fuel as part of the government's efforts to reduce the country's dependence on fossil fuels and decrease carbon emissions.
The mandatory biofuel blend has increased to 20 percent this year from 15 percent last year.
Currently, biodiesel producers have a capacity of 9 million kiloliters a year.
