Indonesia considers new palm oil export restrictions amid biodiesel push

Indonesia, the world’s largest producer of palm oil, is weighing new restrictions on crude palm oil (CPO) exports as part of its ambitious plan to expand domestic biodiesel production. Energy Minister Bahlil Lahadalia announced on October 14 that the government may regulate exports to ensure sufficient supply for its upcoming B50 biodiesel mandate The B50 program, set to launch in the second half of 2026, will require diesel fuel to be blended with 50% palm oil, up from the current 40% under the B40 mandate. This shift could add an estimated 5.3 million tons to domestic palm oil demand. The move is part of Indonesia’s broader strategy to reduce reliance on imported fossil fuels and strengthen energy self-sufficiency. To meet the increased demand, the government is considering several measures, including expanding palm oil plantations and enforcing the Domestic Market Obligation (DMO), which mandates exporters to allocate a portion of their production for local use. Lahadalia ...