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Indonesia’s Biodiesel mandate leads to decline in country’s diesel imports

Posted on : 31 Oct, 2014

 

Indonesia was once Asia's biggest diesel importer. But the country has slipped to the number 3 spot with fuel demand declining and as the government pushes for biodiesel in transport, power and marine sectors, the fuel imports are likely to witness further drops. The country is importing approximately about 3-4 million barrels a month now, which marks a decline from 5-6 million barrels a month last year.

 

The demand is estimated to further decline in the next few years, especially with the government planning another hike in the country's heavily subsidized fuel prices.

 

This decline in imports by Indonesia also means adding more to Asia's growing surplus fuel and is likely to affect suppliers in Singapore and South Korea.

 

According to estimates by Woodmac, Indonesia is expected to witness a decline in diesel demand to 455,000 barrels per day (bpd) this year, from 497,000 bpd last year.

 

Although the country is unlikely to meet the ambitious biofuel target set for this year, diesel imports have already taken a beating.

 

The biodiesel mandate has also proved to be a big boost to Indonesia's huge palm oil based biodiesel sector.

 

More on opportunities emerging from Indonesia's Biofuels Mandate will be discussed at Bio-Markets Asia coming to Jakarta on 27-29 January, 2014.

 

Contact Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218.

 

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