May 12 11:20Indonesia's state firms start using biodiesel fuel
Jakarta (Antara News
) - A number of major state companies have reportedly agreed to use biodiesel to substitute oil fuel.
Bisnis Indonesia daily reported that electricity company PLN, plantation company PT PN VII and railway company PT Kereta API, signed an agreement Wednesday with the Technology Application Agency (BPPT) to use biodiesel as fuel.
Research and Technology Minister Kusmayanto Kadiman said the program is to economize on oil and reduce fuel subsidy.
Under the agreement a mixture of pure palm oil and automotive diesel oil will be used to fuel oil fired power plants of PLN and diesel locomotive and generating sets of PT KA.
Kadiman said the government has set aside Rp60 billion (US$6.7 million) to finance the construction of four biodiesel factories using castor oil or palm oil as feedstock. (*)