Rising biodiesel mandate to dent Indonesia reliance on improted fuel

26/2/2025 16:39

Indonesia's 2025 palm oil exports are likely to drop 7.3% from a year ago to 27.35 million metric tons despite higher production as the world's biggest producer of the edible oil boosts biodiesel output, a senior industry official said on Wednesday.



The country's crude palm oil production is likely to rise to 50 million metric tons in 2025 from 48.16 million metric tons a year ago, Fadhil Hasan, head of the trade and promotion division at the Indonesian Palm Oil Association, said in a presentation.



"Rising biodiesel mandate is reducing surplus for the exports and this trend will continue," he said.



Indonesia expects its B40 biodiesel programme, aimed at reducing its reliance on imported diesel fuel, will reach full implementation next month after delays at the start of the year.



The country launched the mandatory B40 mix, containing 40% of palm oil fuel, from January 1 but faced some delays due to regulatory issues. Fuel distributors were given until the end of February as a transition period.