Indonesia’s palm oil export growth slows ahead of B50 biodiesel rollout
In Ukraine, UkrAgroConsult reported that Indonesia’s palm oil export growth slowed significantly in the first half of 2026 as the country prepared to launch its mandatory B50 biodiesel program.
According to Statistics Indonesia (BPS), palm oil exports rose by 7.3% year-on-year to $12.27 billion in January-June 2026, compared with a 24.8% increase during the same period a year earlier. Export volumes grew by just 2.5% to 11.28 million tons. In June alone, crude palm oil exports weakened, with export value slipping 0.4% to $393.7 million, according to the report.
BPS noted that these figures do not yet reflect the impact of the B50 biodiesel mandate, which took effect in July 2026 and increased the mandatory palm oil blend in biodiesel from 40% to 50%. The full impact on exports will become clearer in the coming months and will depend on production, supply, domestic demand, and international prices, it added.
The Indonesian Palm Oil Association (Gapki) estimates that the B50 program will increase domestic crude palm oil demand by approximately 1.9 million tons, bringing total consumption for biodiesel production to around 14.6 million tons. The B50 program is part of Indonesia’s strategy to reduce its dependence on imported fossil fuels.
Category: Food & Agriculture
