|Indonesia’s oil production. Click to enlarge.|
Xinhua. Indonesia is targeting a 10% domestic usage of biofuels by 2010, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro. The Minister said that the biofuel would be made from casava, sugar cane, palm and castor.
To meet the goal, the minister said that the government planned to provide 6 million hectares of land.
President Susilo Bambang Yudhoyono will issue a decree on the establishment of a national team to control and make a blueprint of the government policy on biofuel energy. Pertamina, the state oil and gas company, will take part in the domestic marketing.
Indonesia and Malaysia—the two largest global suppliers of palm oil—each recently agreed to reserve annually six million tonnes per year of palm oil for biodiesel production. For Indonesia, that represents about 42% of its current output. (Earlier post.)
Indonesia is the only Asian member of the OPEC, and has become a net oil importer rather than exporter. The country’s oil output has been in steady decline since 2000, as production from aging fields have not been supplemented with new discoveries.