In Ukraine, UkrAgroConsult reported that Indonesia’s domestic palm oil consumption could rise by around 3 million tons if the government implements the B50 biodiesel regulation, according to a study by leading Indonesian investment bank CIMB Securities.
The company notes that the potential demand growth would be an additional 6.2% of the projected crude palm oil (CPO) production of 48.2 million tons in 2024, according to the Indonesian Palm Oil Association (GAPKI).
The Indonesian government is preparing to implement the B50 standard, which is expected to provide additional support to CPO prices in 2026, as the additional demand is likely to offset any negative impact from higher US import duties on palm oil, which are currently 19% for Indonesia and 25% for Malaysia, effective from August 1, 2025, the study notes.
The country’s Ministry of Energy and Fuels has previously announced plans to adopt the B50 program, but has not yet set a final date for the 2025 blending mandate as the government is still consulting with experts and assessing feedstock availability and refining capacity, the report added.
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Category: Food & Agriculture
