Indonesia is rapidly progressing toward its B40 biodiesel target.
21-Jul-2025 11:54 AM
Indonesia is rapidly progressing toward its B40 biodiesel target.
★ Out of the 15.62 million kiloliters allocated for 2025, around 7.42 million kiloliters (48%) have already been consumed.
★ The government is considering the possibility of implementing B50 (a 50% palm-based biodiesel blend).
★ In the first half of 2025, 3.5 million kiloliters of subsidized biodiesel were consumed.
★ It is expected that Indonesia will achieve its B40 target in 2025, which would boost domestic palm oil consumption by 2 million tonnes.
★ This would reduce exportable surplus and support palm oil prices.
★ If B50 is implemented, annual biodiesel demand could rise to 19 million kiloliters.
★ This could increase domestic palm oil consumption by approximately 3 million tonnes, or 6.2% of 2024 production.
★ The additional demand could offset the impact of higher U.S. import tariffs (19% for Indonesia, 25% for Malaysia) effective from August.
★ Malaysia has set its August CPO base price at RM3,864/tonne, raising the export tax to 9% from 8.5% in July.
★ CIMB maintains its average CPO price forecast of RM4,200/tonne for 2025.
★ If this program is successfully implemented, lower exportable stock could support prices by the end of 2025.
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This report is for informational purposes only I-Grain India does not take any responsibility for profits or losses and does not promote any specific market movement (bullish or bearish). *Please make decisions based on your own judgment and understanding.