(By reuters.com)

Indonesia is set to miss its ambitious targets on the use of biodiesel this year due to logistical and infrastructure problems, government officials and analysts said, potentially weighing on the price of palm oil.

Southeast Asia’s biggest economy and the top producer of tropical palm oil introduced a regulation last August boosting the use of palm-based biodiesel, in a move to cut its oil import bill.

Jakarta’s energy ministry raised the minimum bio content in diesel fuel used for transport to 10 percent, up from 3-10 percent previously. For the power industry, the minimum was doubled to 20 percent.

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