# Indonesia's Prabowo hopes to implement 50% palm-based biodiesel blending by 2025 | Reuters

> Indonesian president-elect Prabowo Subianto hopes to introduce mandatory 50% palm oil-based biodiesel blending by early next year. He said this would cut fuel imports by $20 billion per year. The government had already said it planned to raise blending to 40% in January 2025 from 35%.

- Date: 2024-08-26 · published 2024-08-26T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15624-indonesia-s-prabowo-hopes-to-implement-50-palm-based-biodiesel-blending-by-2025
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A higher biodiesel mandate would absorb a larger share of Indonesia's palm oil output, tightening export supply and supporting palm oil prices. Soybean oil could also gain as a substitute feedstock.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2024-09-02 | 1 | +4.1% | 5.9 | Prabowo's push for 50% palm biodiesel blending implies higher domestic palm demand, supporting prices. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2024-11-07 | [Indonesia's palm oil fund urges govt to rethink biodiesel funding plan \| Reuters](https://feedsoft.ai/events/15603-indonesia-s-palm-oil-fund-urges-govt-to-rethink-biodiesel-funding-plan-reuters.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 | 2020-05-18 | [Palm-based B30 biodiesel mandate to continue with Indonesian government backing](https://feedsoft.ai/events/52989-palm-based-b30-biodiesel-mandate-to-continue-with-indonesian-government-backing.md) | +1.8% | +14.8% |
| PALMOIL | 2022-03-24 | [Indonesia, Malaysia commit to biodiesel mandates despite higher prices \| Reuters](https://feedsoft.ai/events/15832-indonesia-malaysia-commit-to-biodiesel-mandates-despite-higher-prices-reuters.md) | -0.9% | -4.0% |
| PALMOIL | 2018-08-21 | [Indonesia revises palm crop fund rules to back biodiesel drive](https://feedsoft.ai/events/63401-indonesia-revises-palm-crop-fund-rules-to-back-biodiesel-drive.md) | -0.6% | -1.5% |
| SBO | 2024-11-07 | [Indonesia's palm oil fund urges govt to rethink biodiesel funding plan \| Reuters](https://feedsoft.ai/events/15603-indonesia-s-palm-oil-fund-urges-govt-to-rethink-biodiesel-funding-plan-reuters.md) | +0.7% | -8.8% |
| SBO | 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) | +2.1% | -5.6% |
| SBO | 2018-08-21 | [Indonesia revises palm crop fund rules to back biodiesel drive](https://feedsoft.ai/events/63401-indonesia-revises-palm-crop-fund-rules-to-back-biodiesel-drive.md) | -0.6% | -5.0% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/indonesias-prabowo-hopes-implement-50-palm-based-biodiesel-blending-by-2025-2024-08-26/

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