JAKARTA – Managing Director of Sinar Mas Group, Gandi Sulistyanto said, there is no vegetable fuel (VF) subsidy but there is initiative citation funds from crude palm oil (CPO) Supporting Fund (CSF) about US$50 per ton and the derivative products of CPO about US$50 per ton which one of them will be used to biodiesel.

The world CPO price is now under US$ 750 per ton which becomes the reference to make out fee (OF) of CPO. It means, the government could not make CPO OF.

So the government asked the industries have will though it is under US$ 750 per ton. Then it will be collected from the CSF to give subsidy to biodiesel industries. “After this, the government will not give subsidy to vegetable fuel. There is CSF only,” he said in Jakarta, Monday (6/4).

He explained, the initiative of CSF is not taken by the businessmen but the government itself for the government wants to make breakthrough.

“If the government does not do anything, there will be domino effect, but by implementing this, it will be a better snow ball,” he said.(T3)