# Indonesia's Biofuel Blending Mandate Effects on Palm Oil Supply & Price

> Market sources said Indonesia is considering raising its biodiesel blending mandate from B35 to B40, which would absorb about 1.44 million tonnes of palm oil annually. Concerns also emerged about a growing likelihood of an El Niño event.

- Date: 2023-06-26 · published 2023-06-26T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15726-indonesia-s-biofuel-blending-mandate-effects-on-palm-oil-supply-and-price
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Diverting roughly 120,000 tonnes per month from export to domestic biodiesel would tighten global palm oil supply. Combined with El Niño risk to future output, this points to higher palm oil prices.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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% |
| 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 | 2022-12-19 | [Palm oil firms on higher crude prices, Indonesia’s plan to raise biofuel mandate - Markets - Business Recorder](https://feedsoft.ai/events/38333-palm-oil-firms-on-higher-crude-prices-indonesia-s-plan-to-raise-biofuel-mandate.md) | -0.6% | +1.5% |
| PALMOIL | 2025-07-25 | [Indonesia’s B50 Biodiesel Tightens Palm Oil Supply](https://feedsoft.ai/events/15546-indonesia-s-b50-biodiesel-tightens-palm-oil-supply.md) | -0.5% | +4.7% |
| SBO | 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) | -1.3% | +0.1% |
| SBO | 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) | -0.6% | -4.3% |
| SBO | 2019-11-03 | [Indonesia's Biofuel Plan Will Impact Global Palm Oil Price, Analysts Say](https://feedsoft.ai/events/4288-indonesia-s-biofuel-plan-will-impact-global-palm-oil-price-analysts-say.md) | +1.5% | -3.4% |

## Sources

- mintecglobal.com: https://www.mintecglobal.com/top-stories/concerns-over-palm-oil-supply-and-prices-as-indonesia-considers-hiking-biofuel-blending-mandate

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