# Indonesia's biofuel B40 plan expansion at risk on high palm oil prices - Fastmarkets

> Indonesia's 40% biodiesel blending (B40) mandate is likely to face further delays due to high palm oil prices, according to a government official cited by Reuters. The original July 2021 target has slipped, and Gapki has said implementation could slip beyond 2022. Palm futures in Malaysia reached MYR4,364 per tonne on August 25, up 13% year to date.

- Date: 2021-08-26 · published 2021-08-26T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/45437-indonesia-s-biofuel-b40-plan-expansion-at-risk-on-high-palm-oil-prices
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Delayed biodiesel expansion removes a planned source of palm oil demand, which limits upside for palm prices. Palm remains firm on strong China and India buying and energy prices, so the net effect is modest.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2021-09-13 | [High palm oil prices delay Indonesia’s B40 plans](https://feedsoft.ai/events/44939-high-palm-oil-prices-delay-indonesia-s-b40-plans.md) | +0.8% | +13.3% |
| PALMOIL | 2023-04-28 | [Crude palm oil prices dive to six-month low as Indonesia revises export policy - Fastmarkets](https://feedsoft.ai/events/4383-crude-palm-oil-prices-dive-to-six-month-low-as-indonesia-revises-export-policy.md) | -9.7% | -7.7% |
| PALMOIL | 2025-01-08 | [Palm fell on export concerns, Indonesia’s biodiesel plans - Markets - Business Recorder](https://feedsoft.ai/events/6540-palm-fell-on-export-concerns-indonesia-s-biodiesel-plans-markets-business.md) | +1.2% | +1.1% |
| PALMOIL | 2025-01-02 | [Palm oil ends lower after news on Indonesia’s B40 delay - Markets - Business Recorder](https://feedsoft.ai/events/5046-palm-oil-ends-lower-after-news-on-indonesia-s-b40-delay-markets-business.md) | -10.6% | -10.3% |
| PALMOIL | 2022-07-07 | [Palm falls for fifth day on recession woes, Indonesia’s export rules - Markets - Business Recorder](https://feedsoft.ai/events/4991-palm-falls-for-fifth-day-on-recession-woes-indonesia-s-export-rules-markets.md) | -4.4% | -6.4% |
| SBO | 2023-04-28 | [Crude palm oil prices dive to six-month low as Indonesia revises export policy - Fastmarkets](https://feedsoft.ai/events/4383-crude-palm-oil-prices-dive-to-six-month-low-as-indonesia-revises-export-policy.md) | -1.7% | -8.4% |
| SBO | 2022-08-30 | [Palm Oil Rises After Indonesia Raises Export Tax, Biodiesel Use](https://feedsoft.ai/events/15797-palm-oil-rises-after-indonesia-raises-export-tax-biodiesel-use.md) | +0.7% | -9.6% |
| SBO | 2021-08-26 | [Indonesia's B40 biodiesel plan faces new delay](https://feedsoft.ai/events/45435-indonesia-s-b40-biodiesel-plan-faces-new-delay.md) | -2.6% | -5.4% |

## Sources

- fastmarkets.com: https://www.fastmarkets.com/insights/indonesia-s-biofuel-b40-plan-expansion-at-risk-on-high-palm-oil-prices/

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