(Source: thejakartapost.com)

In a move to support a rise in the proportion of biofuel that must be added to diesel, the Energy and Mineral Resources Ministry has introduced a new formula aiming to lower the price of the mixed substance purchased by distributors.

Under the new formula, the biodiesel index price will be calculated based on the crude palm oil (CPO) base price plus US$125 per ton. The added $125 is the cost of converting CPO into fatty acid methyl ester (FAME), which is used to produce biodiesel. The conversion cost is lower than a previous formula that put it at $188 per ton.

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