# Indonesia, Malaysia push biofuel to offset palm oil price downturn - Nikkei Asia

> Indonesia and Malaysia, the world's largest palm oil producers, are boosting domestic use through jet fuel development and expanded biodiesel programs. The push follows weak palm oil prices, a worsening outlook and deforestation-related backlash.

- Date: 2023-09-03 · published 2023-09-03T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15700-indonesia-malaysia-push-biofuel-to-offset-palm-oil-price-downturn-nikkei-asia
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Higher domestic biofuel use absorbs palm oil supply and can support prices. The policy shift is a meaningful offset to weak export demand.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-11-14 | [Palm oil prices to spike in 2026 as Indonesia pushes biofuel policy - Nikkei Asia](https://feedsoft.ai/events/22047-palm-oil-prices-to-spike-in-2026-as-indonesia-pushes-biofuel-policy-nikkei-asia.md) | -0.2% | -0.9% |
| 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 | 2025-11-12 | [Palm Oil Set to Soar as Indonesia’s Biofuel Push Tightens Supply – MPOC](https://feedsoft.ai/events/15515-palm-oil-set-to-soar-as-indonesia-s-biofuel-push-tightens-supply-mpoc.md) | +0.4% | -0.2% |
| PALMOIL | 2026-06-30 | [Indonesia biofuel push adds strain to producers, palm oil markets](https://feedsoft.ai/events/18903-indonesia-biofuel-push-adds-strain-to-producers-palm-oil-markets.md) | -0.5% | +0.3% |
| PALMOIL | 2018-08-06 | [Global palm oil prices set to rise on Indonesia's biodiesel mandate](https://feedsoft.ai/events/63406-global-palm-oil-prices-set-to-rise-on-indonesia-s-biodiesel-mandate.md) | +1.8% | +0.9% |

## Sources

- asia.nikkei.com: https://asia.nikkei.com/spotlight/market-spotlight/indonesia-malaysia-push-biofuel-to-offset-palm-oil-price-downturn

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