Indonesia’s B50 Biofuel Program Facing Multiple Challenges
06-Aug-2025 08:57 AM
Indonesia’s B50 Biofuel Program Facing Multiple Challenges
★ The Indonesian government has planned to use 50% palm oil blending under the B50 program by 2026, raising concerns for several importing countries, including India.
★ In May, the Indonesian government allocated 53 lakh tonnes of crude palm oil for the B50 program, which could lead to reduced availability for exports.
★ Indonesia exported 260 lakh tonnes in 2025, with a target of 210 lakh tonnes for 2026.
★ Before 2025, out of 2630 lakh tonnes of edible oils, 530 lakh tonnes were used for biodiesel production.
★ Recently, the Trump administration also planned to produce biodiesel from soybean oil, which could consume up to 60 lakh tonnes of soybean oil.
★ If Indonesia fully implements 50% biodiesel blending, an additional 30 lakh tonnes of oils will be consumed, increasing total biodiesel oil usage to around 90 lakh tonnes, potentially reducing export availability.
★ Palm oil production in Malaysia and Indonesia remains stable.
★ A decline in global availability is expected to push international edible oil prices higher.