# Indonesian government needs to pay US$1.75bn to meet funding gap for…

> The Indonesian government faces a funding gap of US$1.75bn (Rp 28.5tn) for its B35 biodiesel subsidy programme in 2024, up 55.5% from last year. The agency also targets US$1.68bn in palm oil export levies this year, and paid out US$8.5M in the first quarter.

- Date: 2024-05-03 · published 2024-05-03T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15645-indonesian-government-needs-to-pay-us-1-75bn-to-meet-funding-gap-for
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Large subsidy needs tied to the gap between palm-based biodiesel and diesel prices signal continued strong domestic biodiesel demand, which supports palm oil prices.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-05-16 | [Indonesia palm oil group GAPKI urges government to delay levy hike](https://feedsoft.ai/events/15559-indonesia-palm-oil-group-gapki-urges-government-to-delay-levy-hike.md) | +0.1% | +2.8% |
| 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 | 2022-07-01 | [Indonesian Palm Growers Ask Government to Cancel Domestic Matching Sales Policy](https://feedsoft.ai/events/6221-indonesian-palm-growers-ask-government-to-cancel-domestic-matching-sales-policy.md) | -24.3% | -29.0% |
| 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 | 2021-07-08 | [Palm Oil News - Indonesian Government Imposed New Palm Oil Export Levies as of July 2](https://feedsoft.ai/events/45938-palm-oil-news-indonesian-government-imposed-new-palm-oil-export-levies-as-of.md) | +3.2% | +9.5% |
| SBO | 2025-05-16 | [Indonesia palm oil group GAPKI urges government to delay levy hike](https://feedsoft.ai/events/15559-indonesia-palm-oil-group-gapki-urges-government-to-delay-levy-hike.md) | +0.5% | -3.0% |
| 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 | 2024-12-20 | [Government raises CPO export levy to 10 percent for biodiesel subsidies \| Indonesia Business Post](https://feedsoft.ai/events/15597-government-raises-cpo-export-levy-to-10-percent-for-biodiesel-subsidies.md) | -0.5% | +9.9% |

## Sources

- ofimagazine.com: https://www.ofimagazine.com/news/indonesian-government-needs-to-pay-us-1-75bn-to-meet-funding-gap-for-b35-biodiesel-programme

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