Major Update: Indonesia Approves 15.6 Million KL Biodiesel Allocation for 2025

04-Jan-2025 10:06 AM

Major Update: Indonesia Approves 15.6 Million KL Biodiesel Allocation for 2025
Indonesia, the world's largest palm oil exporter, approved a 15.6 million kiloliter biodiesel allocation for 2025, exceeding the estimated 12.8 million kiloliters consumed in 2024.
Starting January 1, the mandatory palm oil blend in biodiesel will rise to 40% (B40) from the current 35%. Producers and retailers have until February 28 to comply.
The government plans to implement 50% biodiesel blending (B50) next year.
Key Figures:
PSO allocation: 7.55 million KL
Non-PSO allocation: 8.07 million KL
Impacts:
Palm oil usage in B40 will reduce global export availability, likely driving up prices.
The crude palm oil (CPO) export levy is set to increase from 7.5% to 10%.
KLC futures are expected to open strong on Monday, reflecting bullish sentiments.