Minister: Indonesian B50 Biodiesel launch is subject to crude oil and CPO prices

A senior official stated on Tuesday that the timing of Indonesia's B50 biodiesel mandate - which blends 50% palm oil with diesel - will be subject to the difference in price between crude oil & crude palm oil.

Indonesia, which is the largest palm oil producer in the world, had previously set the goal to "start the B50 mandate" by the second half 2026. The current mandate is 40% blend.

The palm oil export levies are used to subsidise the country's biodiesel program. The amount of the'subsidy' depends on the difference in crude oil prices and crude palm oil.

The president has instructed that B40 will be maintained this year. Airlangga Hartarto, the coordinating minister for economic affairs, told reporters that B50 is being constantly reviewed and that we need to monitor the difference in crude oil and crude Palm?oil price.

He added, "We're preparing (for) implementation in the second semester. However, under the current price conditions, President Obama's directive (is to?maintain?) B40 but be prepared for B50."

Airlangga confirmed that tests are continuing to determine the impact of fuel on automobile engines.

A?official from the Energy Ministry has said that Indonesia will likely increase its palm oil export tax.

Airlangga stated that a decision could be made in the next few days on the export tax. (Reporting and writing by Bernadette Cristina; Editing and proofreading by David Stanway).

(source: Reuters)