Indonesia's Biofuels Push

Indonesia regulation on biofuels subsidies are only the latest in what has become a vast system of aid for palm oil. These subsidies have the effect of distorting the market by making it easier to plant palm oil and destroy forests. “There is increasingly more pressure from environmental groups in sensitive markets, which is pressuring companies,” said Krystof Obidzinski, a palm oil expert with the Indonesia-based Center for International Forestry Research. “Some of these markers are becoming uncertain for CPO.”