Jakarta (ANTARA News) - Coordinating Minister for the Economy Boediono said that the development of biofuel was still relevant to date though fuel oil prices continued to decline to less than US$50 per barrel.
"The declining of fuel oil prices in the international market have an impact on biofuel profit calculations. But biofuel is more advantageous in terms of its premium price," the minister said here Friday.
Boediono said if Indonesia exported biofuel to Europe and Japan, Indonesia would enjoy a higher premium price than fuel oil price.
In view of their limited oil resources, European countries provided the highest incentive to the use of biofuel including imported biofuel, he added.
"For exports, the development of biofuel in the long run still relevant and needs to be promoted," Boediona said.
Asked if the declining fuel oil price in the world market is followed by a down turn of domestic fuel oil, he said that the government continued paying attention to fuel oil price developments on the international market.
"In principle we are studying the trend whether or not it will continue and its impact. We will continue to monitor the trend," he added.
Boediono said if international fuel oil prices continued to decline, it would be possibly that domestic fuel oil prices would also go down. (*)