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Commentary: Indonesia enjoys big biodiesel surplus but loses export markets
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Indonesia is a country with a big surplus of palm oil-based biodiesel and yet it is losing its major export markets one by one. (JP/Dhoni Setiawan)
Indonesia is a country with a big surplus of palm oil-based biodiesel and yet it is losing its major export markets one by one.
Indonesia currently has an installed capacity of around 11.36 million tons of biodiesel per annum, and yet the market — both domestic and export — absorbs far less than half that amount.
While the domestic market for biofuel is still small, absorbing about 2.7 million tons last year, Indonesia is losing its big export markets; first the European Union and now the United States.
Indonesia exported about 1.2 million tons of biodiesel worth almost US$1 billion to the EU in 2012, a year before the grouping imposed dumping duties of between 8.8 percent and 20.5 percent on Indonesian biodiesel producers.
