Indonesia's B40 biodiesel plan faces new delay due to palm price

Indonesia funds its biodiesel programme with proceeds from palm export levies. - Jakarta Post/ANN

JAKARTA, Aug 28 (Reuters): Indonesia's plans to raise the mandatory bio-content in its palm oil-based biodiesel to 40% may face further delays, after the high price of the vegetable oil has made the programme too costly, a senior government official told Reuters.

Indonesia, the world's largest palm oil producer and exporter, has a mandatory biodiesel programme with 30% palm oil content, known as B30, but intends to expand the use of the oil for energy to save on fuel imports.