News Capsule: Indonesia’s B50 biodiesel plan to support palm oil prices
31-Mar-2026 11:45 AM
News Capsule: Indonesia’s B50 biodiesel plan to support palm oil prices
★ The implementation of Indonesia’s long-delayed B50 biodiesel mandate is expected to strengthen palm oil prices.
★ The B50 rollout could generate additional demand of around 4 million tonnes of palm oil annually.
★ This may tighten exportable supply and support prices.
★ Prices are projected to reach around RM 4,400 per tonne.
★ Palm oil prices have already risen nearly 19% so far this year.
★ Indonesia plans to implement the B50 blend (50% palm-based fuel + 50% diesel) this year.
★ Strong energy prices and rising biodiesel demand are likely to keep palm oil prices firm, although higher input costs may put some pressure on production.