# Indonesia’s B40 biodiesel mandate a key support for CPO demand, says Johari Ghani

> Malaysia's Plantation and Commodities Minister Johari Abdul Ghani said Indonesia's B40 biodiesel mandate is a key support for palm oil demand. He said about 25% of Indonesian output is allocated to biodiesel. He warned Malaysia would face downward price pressure if Indonesia dropped the programme.

- Date: 2025-01-07 · published 2025-01-07T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/15593-indonesia-s-b40-biodiesel-mandate-a-key-support-for-cpo-demand-says-johari-ghani
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Biodiesel absorbs a large share of palm supply, so the mandate underpins palm oil prices. Any reversal of the programme would add supply to global markets and pressure prices lower.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2024-10-09 | [Higher biodiesel mandates in Indonesia to curb palm oil supplies, analyst says](https://feedsoft.ai/events/7766-higher-biodiesel-mandates-in-indonesia-to-curb-palm-oil-supplies-analyst-says.md) | -0.0% | +10.4% |
| PALMOIL | 2025-03-10 | [End of cheap palm oil? Malaysia, Indonesia face supply crunch as biodiesel demand surges](https://feedsoft.ai/events/15577-end-of-cheap-palm-oil-malaysia-indonesia-face-supply-crunch-as-biodiesel-demand.md) | -1.1% | -5.0% |
| PALMOIL | 2024-11-07 | [Indonesia targets three-year timeline for 50% biodiesel mandate](https://feedsoft.ai/events/15604-indonesia-targets-three-year-timeline-for-50-biodiesel-mandate.md) | +0.4% | +1.8% |
| PALMOIL | 2016-11-25 | [Palm oil demand from Indonesia biodiesel sector to surge by 2020](https://feedsoft.ai/events/73756-palm-oil-demand-from-indonesia-biodiesel-sector-to-surge-by-2020.md) | +3.8% | +5.0% |
| PALMOIL | 2020-02-04 | [Indonesia's Thirst for Biodiesel May Undercut Global Palm Oil Supply](https://feedsoft.ai/events/54693-indonesia-s-thirst-for-biodiesel-may-undercut-global-palm-oil-supply.md) | +4.6% | -11.1% |

## Sources

- theedgemalaysia.com: https://theedgemalaysia.com/node/740136

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