Tender Procurements and Contract Opportunities Indonesia

JAKARTA: The government allocates subsidies biofuels (BBN) for next year's subsidized fuel mixture in the range Rp2.000-Rp2.500 per liter in a total volume of 982 000 kiloliters.
Ministry of Energy Darwin Zahedy Saleh said government subsidies for biofuel proposed for next year. According to him, the proposed subsidy is intended to reduce fossil energy consumption and greenhouse gas reduction.

In addition, he said, subsidies are intended to encourage domestic biofuel industry and also supports national energy security. For that, he said, the government proposes subsidies for biofuel in the range Rp2.000-Rp2.500 per liter.

"To encourage the growth of domestic biofuel industry as well as national energy security, we propose a range of biofuel subsidies Rp2.000-Rp2.500 per liter," he said today.

The amount is almost same with the assumption that the government subsidies allocated BBN this year. In 2010, the government allocated subsidies amounting Rp2.000 per liter, which is defined as the highest ceiling and could be reduced if the price difference between biofuels and fossil is less than Rp2.000 per liter.

"In terms of volume we propose to allocate as many as 982 000 kiloliters," he said.

Volume BBN, he said, assuming the level of biodiesel blend for diesel mix next year would be as much as 5%. Meanwhile, bioethanol will be blended in a premium as much as 1% in each liter of premium subsidy. (HTR) By: Rudi Ariffianto (Bisnis.com)

www.tenderoffer.biz

< Prev		Next >