Indonesia's top diesel buyer says biofuel rule unworkable

Jakarta

INDONESIAN state power firm PLN says it cannot comply with government rules on burning diesel with a bio content of at least 30 per cent as it would damage generators, potentially curbing demand for biofuel ingredient palm oil in the world's top producer of that commodity.

Under regulations released in 2015, Jakarta mandated that the power industry should from this year use so-called B30 biodiesel, hoping to reduce its crude oil import bill, cut greenhouse gas emissions and stoke local appetite for palm oil.