# Palm-based B30 biodiesel mandate to continue with Indonesian government backing

> Indonesia's government injected about $186 million into the Indonesian Oil Palm Estate Fund to keep the B30 palm biodiesel blending mandate funded, and raised the CPO export levy to $55/mt for May. Finance Minister Sri Mulyani said businesses would contribute about $51 million through the higher levy. Biodiesel producers reported lower orders for May as the palm oil/gasoil spread widened sharply.

- Date: 2020-05-18 · published 2020-05-18T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/52989-palm-based-b30-biodiesel-mandate-to-continue-with-indonesian-government-backing
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A wider palm-gasoil spread makes palm biodiesel costlier to subsidize, so the funding fix supports domestic palm demand while the higher export levy trims Indonesian export competitiveness, a mixed signal for palm oil prices and for soy oil and other vegetable oil substitutes.

## Read by commodity

- SBO: neutral
- 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 | 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 | 2023-05-17 | [Malaysia Says Committed to Raising Palm Oil Biodiesel Mandate](https://feedsoft.ai/events/15734-malaysia-says-committed-to-raising-palm-oil-biodiesel-mandate.md) | -1.4% | -6.4% |
| SBO | 2018-12-26 | [Indonesia to continue subsidizing biodiesel despite slashing palm oil export levy  : The Daily Digest](https://feedsoft.ai/events/61470-indonesia-to-continue-subsidizing-biodiesel-despite-slashing-palm-oil-export.md) | +0.6% | +6.4% |
| SBO | 2022-05-19 | [Slick operator: Indonesian cooking oil probe may spread to biodiesel industry](https://feedsoft.ai/events/15821-slick-operator-indonesian-cooking-oil-probe-may-spread-to-biodiesel-industry.md) | -1.7% | -7.4% |
| SBO | 2022-05-20 | [Malaysia to reduce palm oil export tax, biodiesel mandate](https://feedsoft.ai/events/15820-malaysia-to-reduce-palm-oil-export-tax-biodiesel-mandate.md) | -0.4% | -7.6% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/051820-palm-based-b30-biodiesel-mandate-to-continue-with-indonesian-government-backing

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