Indonesia plans to launch a B50 biodiesel blending program and completely stop importing the fuel

content level in the blend is 40%. The research firm estimates that the introduction of the B50 standard could lead to an additional 4 million tonnes of increased crude palm oil consumption. If implemented, palm oil supply would decrease, which the company says would contribute to higher prices. Indonesia, the world’s largest palm oil producer, plans to implement the mandate in the second half of 2026, thereby reducing reliance on imported diesel fuel and increasing domestic demand for edible oil. The B50 program is currently in its final testing phase, including testing the fuel on ships, trains, heavy equipment, and vehicles. CIMB Securities stated that oil demand could increase by approximately 5% of total consumption in 2024, but noted the risk of potential delays in B50 implementation, including due to a lack of funds to subsidize the program, biodiesel production and blending capacity, and food security concerns. Prices for palm oil, which is used in everything from lipstick ...