From Government of Indonesia

Govt. Mulls Incentives for Biofuel Sales

The government is considering offering financial incentives to encourage gas stations to stock biofuel blends, says an official.

Evita H. Legowo, an assistant to the energy and mineral resources minister, told The Jakarta Post on Monday (23/4/07) that the incentives, which could take the form of tax relief or subventions, were necessary to ensure that biofuel retailers could continue to operate profitably.

"It is important to provide incentives because if oil prices fall below $70 per barrel, the market prices of biofuels will be higher than the prices of pure hydrocarbon-based fuels," Evita explained.

She added that the government was in the process of formulating a mechanism for providing the proposed incentives so as to ensure that retailers would be interested in stocking biofuels.
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