# Indonesia faces costly biofuel expansion after palm oil surges | FMT

> Indonesian consumers, fuel retailers and palm oil producers face higher costs as palm oil prices surge and the government expands biodiesel use to 40%. The fund that collects export levies is likely to fall short at current prices. B40 biodiesel will be subsidized only for the public service sector, about 7.5 million kiloliters.

- Date: 2024-12-31 · published 2024-12-31T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15601-indonesia-faces-costly-biofuel-expansion-after-palm-oil-surges-fmt
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Higher palm oil prices raise the cost of the biodiesel mandate and limit subsidy coverage, which may reduce subsidized biodiesel demand and keep palm oil prices firm.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 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) | -7.5% | -11.0% |
| 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 | 2022-04-22 | [Soyoil surges to record high as Indonesia bans palm oil exports](https://feedsoft.ai/events/14040-soyoil-surges-to-record-high-as-indonesia-bans-palm-oil-exports.md) | +1.1% | -2.1% |
| PALMOIL | 2025-05-14 | [Indonesian palm oil exports set to fall with biofuel mandate - Nikkei Asia](https://feedsoft.ai/events/24754-indonesian-palm-oil-exports-set-to-fall-with-biofuel-mandate-nikkei-asia.md) | +0.7% | +1.5% |
| PALMOIL | 2019-10-16 | [Indonesia extends suspension of palm oil export levies](https://feedsoft.ai/events/56445-indonesia-extends-suspension-of-palm-oil-export-levies.md) | +3.0% | +20.3% |

## Sources

- freemalaysiatoday.com: https://www.freemalaysiatoday.com/category/business/2024/12/31/indonesia-faces-costly-biofuel-expansion-after-palm-oil-surges

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