Indonesia’s B50 biodiesel plan may push up global palm oil prices: Minister

02-Jun-2025 01:40 PM

Indonesia’s B50 biodiesel plan may push up global palm oil prices: Minister
★ Indonesia's B50 biodiesel initiative — blending 50% biofuel (mainly derived from palm oil) with 50% conventional diesel — could lead to a rise in global crude palm oil (CPO) prices, according to the country’s agriculture minister.
★ The government plans to utilize around 5.3 million tons of CPO under this program.
★ “We exported 26 million tons of CPO last year. If exports are reduced to 21 million tons, prices are bound to increase,” the minister said.
★ Indonesia contributes 65.94% of the world’s total CPO supply, so any export cuts by the country could significantly impact global markets.
★ The government has assured that no new palm plantations will be developed for this program. Instead, palm oil demand will be met through replanting initiatives, avoiding deforestation or expansion into new land.
★ While this move is expected to boost income for palm oil farmers, it could also lead to a rise in global CPO prices — potentially increasing costs for major importing countries like India.