Indonesia: Government to pay subsidies to biofuel manfacturers

The Indonesian government has announced plans to promote biofuel as an alternative energy source, saying it will pay subsidies in an effort to boost this new industry. The government also plans to make biofuel mandatory over 2009. Crude oil prices are at a current low, making biofuel products significantly higher. Due to large government subsidies petrol diesel in Indonesia is among the cheapest in Asia, making it hard for palm biofuel and bioethanol to compete.

Source: The Business Times http://www.btimes.com.my