# Indonesia's new palm oil biodiesel programme profits major corporations at the expense of smallholders, says union

> A palm oil farmers union report says Indonesian palm conglomerates earned over $1 billion in profits from biodiesel subsidies under the B35 programme, effective 1 February. The B35 mandate requires a 35% palm-based blend and is funded by the palm oil export tax. Smallholders argue the policy disadvantages them.

- Date: 2023-02-08 · published 2023-02-08T12:00:00.000Z
- Category: policy · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/15754-indonesia-s-new-palm-oil-biodiesel-programme-profits-major-corporations-at-the
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

The B35 mandate sustains structural palm oil demand from the biodiesel sector, supporting palm prices. Continued reliance on export-tax-funded subsidies shapes how much palm oil leaves the country.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2021-07-01 | [Palm Oil News - Indonesia's Export Levy Revision Burdens Oil Palm Smallholders](https://feedsoft.ai/events/45939-palm-oil-news-indonesia-s-export-levy-revision-burdens-oil-palm-smallholders.md) | +1.7% | +9.8% |
| PALMOIL | 2020-02-06 | [Indonesia’s biodiesel thirst may weaken palm oil exports](https://feedsoft.ai/events/54503-indonesia-s-biodiesel-thirst-may-weaken-palm-oil-exports.md) | -2.7% | -11.2% |
| PALMOIL | 2026-06-25 | [Indonesia sets 3-month transition period for B50 biodiesel programme, official says](https://feedsoft.ai/events/15462-indonesia-sets-3-month-transition-period-for-b50-biodiesel-programme-official.md) | -0.5% | +0.6% |
| PALMOIL | 2020-07-01 | [Indonesia lavishes $195m subsidy on palm biodiesel producers over smallholders](https://feedsoft.ai/events/51972-indonesia-lavishes-195m-subsidy-on-palm-biodiesel-producers-over-smallholders.md) | +0.6% | +7.0% |
| PALMOIL | 2026-04-07 | [Malaysia plans phased expansion of biodiesel programme, minister says \| Reuters](https://feedsoft.ai/events/15476-malaysia-plans-phased-expansion-of-biodiesel-programme-minister-says-reuters.md) | -2.9% | -1.9% |
| SBO | 2020-07-01 | [Indonesia lavishes $195m subsidy on palm biodiesel producers over smallholders](https://feedsoft.ai/events/51972-indonesia-lavishes-195m-subsidy-on-palm-biodiesel-producers-over-smallholders.md) | +1.7% | +6.0% |
| SBO | 2017-08-23 | [M’sia, Indonesia in talks on possible B5 biodiesel programme in China \| The Star](https://feedsoft.ai/events/69316-m-sia-indonesia-in-talks-on-possible-b5-biodiesel-programme-in-china-the-star.md) | +0.6% | +1.8% |
| SBO | 2020-02-04 | [Indonesia's Thirst for Biodiesel May Undercut Global Palm Oil Supply](https://feedsoft.ai/events/54693-indonesia-s-thirst-for-biodiesel-may-undercut-global-palm-oil-supply.md) | +1.1% | -4.8% |

## Sources

- southeastasiaglobe.com: https://southeastasiaglobe.com/indonesian-corporations-biodiesel-subsidies/

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