Indonesia’s energy minister signaled that the government could regulate crude palm oil (CPO) exports to guarantee enough supply for the planned B50 biodiesel mandate in the second half of 2026. Options under review include raising domestic output or tightening exports through the country’s Domestic Market Obligation rules that link overseas sales to local distribution.
The ministry has completed laboratory tests and is moving to on-road trials before deciding on B50, which would lift annual palm oil-based fuel demand to 20.1 million kiloliters compared with 15.6 million kiloliters under today’s B40 blend. Authorities have yet to determine whether opening new plantations is necessary to meet the higher requirement.