Government Mulls to Use Biofuel to Generate Energy
Friday, 31 October, 2008 | 18:17 WIB
TEMPO Interactive, Jakarta: Ministry of Energy and Mineral resources said the government will impose the Domestic Market Obligations on biofuel producers to prevent fuel shortage in local market. The remark was made by Minister Purnomo Yusgiantoro on Friday when visiting a biofuel producer, PT Darmex Biofuel in Bekasi West Java.
Minister Purnomo suggest the domesic obligation will be set at 50 percent as the government is targetting to increase biofuel usage to 10 percent in generating power for domestic needs, and the removal of export tarrif for the crude palm oil to boost the slowing economy.
The ministry said to discuss the details for the mandatory biofuel usage in a meeting with the Ministry of Economy next week including the tax incentive facility for investments in biofuel industries.
European Union and the United States have already developed the use of biofuel as an alternative to tackle the environmental problem caused by the fossil based fuel and the depleting reserve of the world fossil based fuel. But the strategy was proven to be damaging to human source of food in early 2008 as the global food prices soared in consequences of the biofuel industry. The European Union have decided to reevaluate the strategy and to look at other potential source of energy.
Agoeng Wijaya
TEMPO Interactive, Jakarta: Ministry of Energy and Mineral resources said the government will impose the Domestic Market Obligations on biofuel producers to prevent fuel shortage in local market. The remark was made by Minister Purnomo Yusgiantoro on Friday when visiting a biofuel producer, PT Darmex Biofuel in Bekasi West Java.
Minister Purnomo suggest the domesic obligation will be set at 50 percent as the government is targetting to increase biofuel usage to 10 percent in generating power for domestic needs, and the removal of export tarrif for the crude palm oil to boost the slowing economy.
The ministry said to discuss the details for the mandatory biofuel usage in a meeting with the Ministry of Economy next week including the tax incentive facility for investments in biofuel industries.
European Union and the United States have already developed the use of biofuel as an alternative to tackle the environmental problem caused by the fossil based fuel and the depleting reserve of the world fossil based fuel. But the strategy was proven to be damaging to human source of food in early 2008 as the global food prices soared in consequences of the biofuel industry. The European Union have decided to reevaluate the strategy and to look at other potential source of energy.
Agoeng Wijaya