M'sian biodiesel producers want level playing field with Indonesia

Kuala Lumpur

MALAYSIAN producers of palm oil-based biodiesel will seek new incentives from their government after Indonesian makers of the biofuel were promised an increase in subsidies to counter the impact of lower energy costs.

Any move by the Malaysian authorities to encourage biodiesel consumption could fuel another rally in Bursa palm futures, which jumped 9 per cent last week after Jakarta said it would boost subsidies for biodiesel nearly threefold.