JAKARTA : Indonesian companies will get a 1-1/2 month transition period to meet the new B40 biodiesel requirement, Deputy Energy and Mineral Resources Minister Yuliot Tanjung told reporters on Friday.
Indonesia had planned to launch the mandatory mix of 40 per cent palm oil fuel in biodiesel on Jan. 1, but industry players said they are still waiting for the technical regulations for its implementation.
The transition period started on Jan. 1, Yuliot said.
Market participants were waiting for the official decree detailing the volume of biodiesel that Indonesia will allocate to fuel retailers to gauge how much exports of palm oil will be affected.
Yuliot declined to say when the allocation decree is expected to be released, saying that such details will be announced by the energy minister “hopefully soon”.
Dadan Kusdiana, secretary general at the ministry, said the approval process for the biodiesel allocation is currently in the final stage.
Yuliot reiterated the government’s plan to allocate 15.6 million kilolitres of biodiesel this year.
