Clear Regulations Needed For Biofuel Development: Observer

Jakarta (Antara Bali) - The government needs to issue clear regulations for the development of biofuels, energy observer Lulu Sumarso of Indonesia Institute for Clean Energy said.

"The absence of comprehensive regulations dealing with biofuel from the upstream to downstream sectors will hamper energy development," Sumarso stated here on Thursday.

He noted that the development of bioenergy must be designed on a long-term scheme as it cannot be developed partially and without the support of clear regulations.

According to the energy observer, comprehensive policies incorporating biofuel development at a regional level is needed because the support of regional governments is badly required to facilitate biodiesel marketing.

He added that it is necessary to change the impression that the development of bioenergy is costlier than the development of fossil fuels in Jakarta and Java.

However, if it is compared with local costs, in Papua for instance, it is not expensive.

Sumarso observed that the government should decide a road map for energy and biofuel development so that supporting regulations can be issued based on the designed plan.

"There must be a clear and comprehensive energy vision to reduce the dependence on fossil fuels," Sumarso remarked.

The most technical and crucial issue, he said, is the fixing of the price index of biodiesel markets.

Chairman of the Indonesian Palm Oil Derom Bangun said the government should not remain silent on the fixing of price by state-owned oil company Pertamina so that the target to absorb three million kiloliters of biodiesel into the domestic market can be realized. (WDY)