# Indonesia lavishes $195m subsidy on palm biodiesel producers over smallholders

> Indonesia is allocating $195 million from its state palm oil fund to subsidize palm oil biodiesel producers, justifying it as support for economic recovery from the pandemic slump. Campaigners say the fund is meant to help smallholder farmers, and note that smallholders are receiving far lower fresh fruit bunch prices since COVID-19 restrictions.

- Date: 2020-07-01 · published 2020-07-01T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/51972-indonesia-lavishes-195m-subsidy-on-palm-biodiesel-producers-over-smallholders
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Subsidizing biodiesel production supports domestic CPO demand and can lift palm oil prices, while the smallholder price slump reflects weak local demand and logistics disruption. Net effect is supportive for palm oil and vegetable oil complex prices.

## 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 | 2023-02-08 | [Indonesia's new palm oil biodiesel programme profits major corporations at the expense of smallholders, says union](https://feedsoft.ai/events/15754-indonesia-s-new-palm-oil-biodiesel-programme-profits-major-corporations-at-the.md) | -0.4% | +1.7% |
| PALMOIL | 2019-12-20 | [Indonesia launches B30 biodiesel to cut costs, boost palm oil](https://feedsoft.ai/events/8616-indonesia-launches-b30-biodiesel-to-cut-costs-boost-palm-oil.md) | +1.5% | +6.0% |
| PALMOIL | 2022-11-09 | [Indonesia to Boost Biodiesel Production With Palm Oil Considering High Crude Oil Prices](https://feedsoft.ai/events/15778-indonesia-to-boost-biodiesel-production-with-palm-oil-considering-high-crude.md) | -2.9% | -1.6% |
| 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 | 2023-02-08 | [Indonesia's new palm oil biodiesel programme profits major corporations at the expense of smallholders, says union](https://feedsoft.ai/events/15754-indonesia-s-new-palm-oil-biodiesel-programme-profits-major-corporations-at-the.md) | +0.7% | -0.5% |
| SBO | 2022-11-09 | [Indonesia to Boost Biodiesel Production With Palm Oil Considering High Crude Oil Prices](https://feedsoft.ai/events/15778-indonesia-to-boost-biodiesel-production-with-palm-oil-considering-high-crude.md) | +0.1% | -12.9% |
| SBO | 2024-05-27 | [Palm Oil Magazine - Indonesia's Palm Oil Biodiesel Production Reaches 13.1 Million Kiloliters, Awaits B40 Decision - Palm Oil Magazine](https://feedsoft.ai/events/15644-palm-oil-magazine-indonesia-s-palm-oil-biodiesel-production-reaches-13-1.md) | +1.7% | +2.0% |

## Sources

- news.mongabay.com: https://news.mongabay.com/2020/07/indonesia-subsidy-palm-oil-biodiesel-producers-smallholders-b30/

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