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Study On The Investment Prospect Biodiesel In Indonesia
Attempts to promote the use of bio-diesel in Indonesia already began in the beginning of 1990s. The attempts, however, failed to attract investor as at that time automotive or industrial diesel oils were cheap making bio-diesel not competitive. In the start of the 200s, seminars, experiments and researches were held and organized to again promote biodiesel. In 2005, the government issued a blue print for National Energy Management (PEN) aimed among other things at reducing the consumption of oil by 20% through the use of bio-diesel. The government set target for the country to use bio-diesel to replace the consumption of automotive diesel oil by 2% in the transport sector, by 3% in 2025 and by 5% in 2025. On January 25 in 2006, the government issued a Presidential Instruction No. 1 to guarantee the availability of vegetable oils and regulate supply of vegetable fuel basic material, investment in bio-fuel industry, incentives for bio-fuel industry and availability and distribution of vegetable oils as ""Other Fuel"".
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