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335632

UPDATE 1-Indonesia sees higher crude oil price boosting bio-content in fuel

(Adds details, background)

NUSA DUA, Indonesia, Nov 3 (Reuters) - The stronger price of crude oil is making a higher mix of bio-content in fuel increasingly more feasible for Indonesia, which currently has a mandatory 30% mix of palm oil in biodiesel, a senior cabinet minister told an industry conference on Thursday.

The cost of producing biodiesel is cheaper than fossil diesel fuel at the moment, said Airlangga Hartarto, Coordinating Minister for Economic Affairs.

Indonesia is currently conducting a road test for biodiesel with 40% palm oil content, known as B40.

"The effort to substitute fossil fuel with biodiesel, and green fuel and petrochemical with palm-based oleochemical is a strategy that will make the palm oil industry more feasible to maintain prices," Airlangga said.

This week, an energy ministry official said that the B40 road test is entering the last 6,000 km (3,728 miles) distance of the 50,000 km target. (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy Editing by Ed Davies)

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