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Indonesia and Malaysia with biodiesel against palm oil prices

Staff writer |
Indonesia and Malaysia have agreed to increase the use of biodiesel to suppress dependence on exports of crude palm oil (CPO) prices and to boost exports.

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"The agreement is one of several agreements that have been discussed in Indonesia-Malaysia bilateral meeting recently," said the chairman of the Indonesian Palm Oil Board (DMSI) Derom Bangun.

Indonesia pledged to increase diesel fuel composition of B7.5 that contains 7.5 per cent palm biodiesel to B10 that contains 10 percent pal biodiesel.

Malaysia also expected to increase the use of biodiesel in the country from five percent to 7.5 percent.

The 10 percent use of biodiesel which means 3.3 million kiloliters (kl) of diesel consumption reached 33 million kiloliters per year will absorb as much as 3 million tons of CPO. Biodiesel increasing absorption in Indonesia would affect the supply and demand balance in the international market.

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