Biodiesel is a popular alternative fuel in Indonesia due to rising oil prices

Indonesian motorists are upgrading their vehicles to run on biodiesel, which is subsidised by Jakarta. This is due to the high price of oil globally and the increasing palm oil content of the fuel. Jakarta wants to reduce Indonesia's dependence on imported energy. Indonesia, which is the world's largest palm oil exporter and producer, has accelerated its testing of fuel under the B50 mandate. This blend of 50% palm-based and 50% conventional diesel was developed after the U.S. and Israeli war against Iran, which began in February, sent oil prices soaring. Jakarta started implementing B50?biofuel blend on July 1. The high global prices this year have driven up the price for conventional diesel in Indonesia by as much as 46 percent. Early July, diesel cost 21,150 rupiah (about $1.17) per litre. This was more than three times the price of biodiesel, which is subsidised at 6,800.

Arnoldus Yusuf is a retired 58-year old man who said that he couldn't afford to buy non-subsidised gasoline.

I thought the price was unreasonable. It had tripled and I'm retired so I couldn’t afford it. Yusuf said, "Let's switch to biodiesel," as he waited to have his Toyota Fortuner 2018 adjusted by mechanics.

The workshop installed an additive fluid that protects the fuel system from corrosion and prevents clogged filters. It also installed a water-separator and reinstalled a computer in the car so the engine check light wouldn't light up while the vehicle was running on biodiesel.

Yusuf may be struggling, but the B50 program has brought Aong Ulinnuha, 51 years old and the owner of a garage on the outskirts Jakarta in Tangerang.

He claims that his rare car modification services have led to a significant increase in customers. He said that vehicles that use biodiesel would require more frequent fuel filter changes because it leaves more sediment. As oil prices have fallen due to efforts made by the?Iran government to reach a peaceful settlement, this programme faces other challenges. Palm oil prices, which are usually higher than diesel, were also high, increasing the subsidy bill for the government. The government still counts B50 as a success. On Thursday, at an?official launching, President Prabowo said that the half-half mixture was "an exceptional achievement for the country".

We will continue. Do not stop at B50. Prabowo replied, "Maybe we can get to B60."

(source: Reuters)