Indonesia to Boost Oils Output to Promote Biofuel

Pollution is an increasingly big problem in Indonesia. The use of fossil fuels is doing nothing to help with the Beautiful Indonesia image that the government is so eager to promote. But they are making steps in the right direction by investing in biofuel production.

According to the Agriculture Minister Anton Apriyantono Indonesia plans to boost output of palm oil, sugar cane and vegetable oils used in making biofuels that will help the nation reduce the use of petroleum products. President Susilo Bambang Yudhoyono decided that Indonesia should focus on making biofuels from four commodities including castor oil and cassava oil.

Indonesia is Southeast Asia's biggest oil producer and consumer and wants to use more fuel that's derived from plants to reduce imports of expensive petroleum and refined products. Even with refineries running at full capacity Indonesia needs to import a third of the country,s fossil fuel requirements. The government expects to prepare by August a so-called 'blue print' on boosting production of the four selected commodities for use as a cheaper alternative source of energy.

Growers of vegetable oils said biofuels won't sell as long as the government artificially keeps diesel prices lower by subsidizing the fuel. Indonesia's palm oil output is expected to rise to between 14.7 million metric tons and 15 million tons this year from 13.6 million tons in 2005.

The government expects Indonesia will have an additional two million hectares to 3 million hectares of oil palm plantation by 2010. Indonesia had about 5.6 million hectares of registered oil palm plantations at the end of 2005 in addition to unregistered plantations.