# Indonesia biodiesel pause, rising output seen limiting palm oil gains | Reuters

> Southeast Asian palm oil output is expected to rise marginally in 2026, with Indonesia improving on better weather while Malaysia declines. Indonesia has shelved its plan to mandate 50% biodiesel blending, so more palm oil is likely to reach world markets.

- Date: 2026-02-11 · published 2026-02-11T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15489-indonesia-biodiesel-pause-rising-output-seen-limiting-palm-oil-gains-reuters
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Dropping the B50 mandate removes planned domestic biodiesel demand, so extra palm and soy oil supply is likely to press prices lower.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-09-08 | [Indonesia to revamp palm oil levy to support biodiesel programme](https://feedsoft.ai/events/51005-indonesia-to-revamp-palm-oil-levy-to-support-biodiesel-programme.md) | +1.1% | -4.1% |
| PALMOIL | 2018-01-18 | [Indonesia, Malaysia condemn European move to limit palm oil use \| Reuters](https://feedsoft.ai/events/67074-indonesia-malaysia-condemn-european-move-to-limit-palm-oil-use-reuters.md) | +0.5% | -0.0% |
| PALMOIL | 2026-01-14 | [Indonesia scraps plan to introduce B50 biodiesel this year, will raise palm oil export levy \| Reuters](https://feedsoft.ai/events/15497-indonesia-scraps-plan-to-introduce-b50-biodiesel-this-year-will-raise-palm-oil.md) | +0.6% | +4.5% |
| PALMOIL | 2025-01-02 | [Indonesia's B40 palm oil delay causes market uncertainty \| Reuters](https://feedsoft.ai/events/5045-indonesia-s-b40-palm-oil-delay-causes-market-uncertainty-reuters.md) | -10.6% | -10.3% |
| PALMOIL | 2025-02-24 | [Malaysia rules out raising palm oil's biodiesel blend to 20%](https://feedsoft.ai/events/15583-malaysia-rules-out-raising-palm-oil-s-biodiesel-blend-to-20.md) | -0.7% | -2.4% |
| SBO | 2022-08-30 | [Palm Oil Rises After Indonesia Raises Export Tax, Biodiesel Use](https://feedsoft.ai/events/15797-palm-oil-rises-after-indonesia-raises-export-tax-biodiesel-use.md) | +0.7% | -9.6% |
| SBO | 2018-12-04 | [Indonesia relaxes palm oil levy rules \| The Star](https://feedsoft.ai/events/61467-indonesia-relaxes-palm-oil-levy-rules-the-star.md) | +1.4% | -0.5% |
| SBO | 2022-05-19 | [Indonesia president declares end of palm oil export ban from Monday \| Reuters](https://feedsoft.ai/events/41501-indonesia-president-declares-end-of-palm-oil-export-ban-from-monday-reuters.md) | -1.7% | -7.4% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/indonesia-biodiesel-pause-rising-output-seen-limiting-palm-oil-gains-2026-02-11/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.