Positive Prospects For Local Palm Oil Players From Indonesia’s B50 Plan

CIMB Investment Bank Bhd (CIMB Securities) has maintained its overweight call on the plantation sector, citing Indonesia’s plan to implement a 50% biodiesel blend (B50) mandate by the second half of 2026 as a long-term structural positive for crude palm oil (CPO) demand and prices. The research house said the move could trigger a potential re-rating of plantation counters such as SD Guthrie, IOI Corp, Ta Ann Holdings and Hap Seng Plantations. According to CIMB Securities analyst Ivy Ng Lee Fang, the policy follows the successful rollout of the B40 programme and completion of its third testing phase. The final B50 trial, which began this year, is expected to conclude within six to eight months and involves testing the blend on ships, trains, heavy machinery and vehicles. Once successful, Indonesia will proceed with a nationwide rollout by 2H26. The B50 initiative is designed to strengthen energy security, improve the trade balance and support domestic CPO consumption by reducing ...