Factsheet: Procurement and distribution of biofuels

Presidential Regulation No.45/2009 was issued concerning the procurement and distribution of biofuels. This regulation mandates the Ministry of Energy and Mineral Resources to determine the market price of petroleum and biofuels. In the same year, the government decided that the House of Representatives would consider a subsidy of IDR1000 (US $ 0.1) per litre for biofuels if the cost of production was higher than that of petroleum. The subsidy allocated for biofuels in 2010 was IDR2000 (US $0.2) per litre and the government proposed increasing the subsidy to IDR2500 (US $0.27) per litre for 2011.