In Indonesia, the use ratio of bio-fuel in automobiles in fiscal 2008 is 1% and that in other industries is 2.5% and in fiscal 2010, the use ratio of the bio-fuel will be raised to 3% and 5%, respectively.

At the end of May, 2009, the Indonesian government submitted to the House of Representatives a bill to double the bio-fuel subsidy for the next fiscal year to 1.5 trillion Rp[rupiah] (about 125 million dollars). The government judged that it would be difficult to achieve the target of fiscal 2010 unless the subsidy is doubled. The subsidy is expected to be 1,450Rp/L for bio-ethanol and 1,660Rp/L for bio-diesel oil. (Note: 1Rp = about 0.01 yen)

Meanwhile, PT Pertamina, an Indonesian state-owned oil company, raised the price of high-octane value gasoline, which is not subject to the subsidy, by 200 to 300Rp/L on June 1, 2009. The price of Pertamax Plus gasoline was raised from 6,300 to 6,500Rp/L and that of Bio Pertamax gasoline from 5,600Rp/L to 5,900Rp/L.

The Indonesian government has a policy of promoting the spread of the bio-fuel on two fronts: one to raise the price of gasoline not subject to the subsidy and the other to double the subsidy for the bio-fuel.

Fig Ratio of Bio Fuel in Indonesia

Cf: The Jakarta Post, Mon, 06/01/2009, Wed, 06/03/2009, and Wed, 05/27/2009) Jakarta Post http://www.thejakartapost.com/, etc.

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