Indonesia is considering new restrictions on palm oil exports amid rising demand for biodiesel.

Indonesia, the world's largest producer of palm oil, is considering introducing new restrictions on the export of crude palm oil (CPO) as part of its ambitious plan to expand domestic biodiesel production. Energy Minister Arkanuddin Maulud announced on October 14 that the government may regulate exports to ensure sufficient supply for the upcoming B50 biodiesel fuel mandate. The B50 program, scheduled to launch in the second half of 2026, will require a blend of diesel fuel with 50% palm oil, up from the current 40% under the B40 mandate. This shift is estimated to increase domestic demand for palm oil by 5.3 million tons. This move is part of Indonesia's broader strategy to reduce dependence 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 introducing Domestic Market Obligations (DMO) that require exporters to allocate a portion of their ...