The Indonesian government plans to invest $1.2 billion in a methanol plant to serve the biodiesel industry.
Currently, about 80 per cent of methanol consumption comes from imports. The 800,000 metric tonne plant will be located in East Java.
Demand for methanol will continue to rise as the government continues to increase biodiesel blending requirements. By increasing the biodiesel blend to 50 per cent, the country will be able to meet its own diesel needs without the need for imports.