Increasing domestic use of palm oil biodiesel is a strategic issue for Indonesia. Despite its
membership in the Organization of the Petroleum Exporting Countries (OPEC), Indonesia is
a net importer of oil. Fuel subsidies impose a significant burden on the national budget and
therefore have become a sensitive political issue. After decades of spending a significant
portion of the federal budget on fuel subsidies, Indonesia finally abolished most of its fuels
subsidies in 2015. On the other hand, since 2006 Indonesia has been increasing its biofuel …