# Indonesia’s biofuel bet risks backfiring | East Asia Forum

> An East Asia Forum analysis argues that Indonesia's biofuel expansion carries risks of backfiring. The expansion relies on palm oil export levies to fund biodiesel subsidies, while domestic consumption is absorbing a growing share of output. The page text available is mostly site navigation.

- Date: 2025-08-01 · published 2025-08-01T12:00:00.000Z
- Category: policy · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/15539-indonesia-s-biofuel-bet-risks-backfiring-east-asia-forum
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

If biodiesel demand keeps absorbing supply and export levy funding falls short, Indonesia's export volumes could become less predictable, adding to palm oil price volatility.

## Read by commodity

- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-05-02 | [Indonesia 2019 biodiesel exports to rise  \| The Star](https://feedsoft.ai/events/58956-indonesia-2019-biodiesel-exports-to-rise-the-star.md) | -3.3% | -3.6% |
| PALMOIL | 2025-03-12 | [Seizing the EUDR compliance opportunity in Southeast Asia \|  EY Indonesia](https://feedsoft.ai/events/25599-seizing-the-eudr-compliance-opportunity-in-southeast-asia-ey-indonesia.md) | 0.0% | -6.6% |
| PALMOIL | 2026-06-26 | [Pakistan Asks Indonesia to Ease Export Levy on Palm Oil](https://feedsoft.ai/events/15466-pakistan-asks-indonesia-to-ease-export-levy-on-palm-oil.md) | -1.2% | +0.9% |
| PALMOIL | 2024-09-19 | [Indonesia UCO, POME export levy hikes to support local biofuel output: sources](https://feedsoft.ai/events/15620-indonesia-uco-pome-export-levy-hikes-to-support-local-biofuel-output-sources.md) | +2.4% | +11.3% |
| PALMOIL | 2021-12-20 | [Lives and forests at risk: Indonesia shows flaws in EU’s plans to fight deforestation – POLITICO](https://feedsoft.ai/events/43617-lives-and-forests-at-risk-indonesia-shows-flaws-in-eu-s-plans-to-fight.md) | +1.3% | +11.0% |

## Sources

- eastasiaforum.org: https://eastasiaforum.org/2025/08/01/indonesias-biofuel-bet-risks-backfiring/

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