# Indonesia must jump ethanol feedstock hurdle to repeat biodiesel success

> Indonesia raised its mandatory biodiesel blend to 35% palm oil-based content in February, up from 30%. The eight-year biodiesel programme has reduced diesel imports and absorbed excess palm oil output. Pertamina has also tested a 40% blend and started producing palm-based diesel for export.

- Date: 2023-04-06 · published 2023-04-06T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15738-indonesia-must-jump-ethanol-feedstock-hurdle-to-repeat-biodiesel-success
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

A higher domestic biodiesel mandate locks in palm oil demand and reduces the volume available for export, which supports palm oil prices. It also ties palm oil prices more closely to energy policy.

## Read by commodity

- WTI: neutral
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-05-02 | [B30: Higher admixture to relieve Indonesia's biodiesel](https://feedsoft.ai/events/58957-b30-higher-admixture-to-relieve-indonesia-s-biodiesel.md) | -3.3% | -3.6% |
| 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% |
| PALMOIL | 2025-02-01 | [Indonesia expects to reach full implementation of B40 biodiesel in March](https://feedsoft.ai/events/15581-indonesia-expects-to-reach-full-implementation-of-b40-biodiesel-in-march.md) | +3.6% | +3.5% |
| PALMOIL | 2026-06-18 | [Indonesia on track to launch B50 biodiesel programme on July 1, minister says \| Reuters](https://feedsoft.ai/events/15459-indonesia-on-track-to-launch-b50-biodiesel-programme-on-july-1-minister-says.md) | -0.5% | -0.4% |
| PALMOIL | 2026-06-30 | [Indonesia's biodiesel push, El Niño risks to tighten palm oil supply](https://feedsoft.ai/events/15463-indonesia-s-biodiesel-push-el-nino-risks-to-tighten-palm-oil-supply.md) | -0.5% | +0.3% |
| WTI | 2020-08-19 | [Indonesia mulls palm oil levies increase to support biodiesel plans](https://feedsoft.ai/events/51467-indonesia-mulls-palm-oil-levies-increase-to-support-biodiesel-plans.md) | +0.8% | -6.3% |
| WTI | 2020-05-14 | [Indonesia seeks options to finance its biodiesel subsidy scheme \| Enerdata](https://feedsoft.ai/events/52992-indonesia-seeks-options-to-finance-its-biodiesel-subsidy-scheme-enerdata.md) | +32.3% | +43.6% |
| WTI | 2020-05-06 | [Indonesia to discuss how to continue biodiesel program amid falling fuel prices, ETEnergyworld](https://feedsoft.ai/events/52994-indonesia-to-discuss-how-to-continue-biodiesel-program-amid-falling-fuel-prices.md) | +4.9% | +51.9% |

## Sources

- reuters.com: https://www.reuters.com/business/sustainable-business/indonesia-faces-ethanol-feedstock-hurdle-repeat-biodiesel-success-2023-04-06/

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