# Indonesia seeks options to finance its biodiesel subsidy scheme | Enerdata

> Indonesia is reviewing ways to finance its biodiesel subsidy scheme as the fall in crude oil prices has more than doubled the cost gap between FAME and diesel from January to May 2020. Options include diverting other fuel subsidies, direct subsidies, or raising the palm oil export levy. The B40 target has been postponed to January 2022.

- Date: 2020-05-14 · published 2020-05-14T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/52992-indonesia-seeks-options-to-finance-its-biodiesel-subsidy-scheme-enerdata
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Funding uncertainty and the postponed B40 target weaken the outlook for domestic palm biodiesel demand, which is bearish for palm oil, though a higher export levy would shift cost to exporters.

## Read by commodity

- WTI: neutral
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-09-08 | [Indonesia to revamp palm oil levy to support biodiesel programme](https://feedsoft.ai/events/51005-indonesia-to-revamp-palm-oil-levy-to-support-biodiesel-programme.md) | +1.1% | -4.1% |
| PALMOIL | 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) | -2.5% | +2.0% |
| 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 | 2026-02-11 | [Indonesia biodiesel pause, rising output seen limiting palm oil gains \| Reuters](https://feedsoft.ai/events/15489-indonesia-biodiesel-pause-rising-output-seen-limiting-palm-oil-gains-reuters.md) | -0.8% | +7.3% |
| PALMOIL | 2026-01-21 | [Subsidy strain delays Indonesia’s B50 mandate \| The Star](https://feedsoft.ai/events/15500-subsidy-strain-delays-indonesia-s-b50-mandate-the-star.md) | +1.8% | +4.0% |
| WTI | 2023-06-30 | [Palm oil quotes support Indonesia's plans to increase its biodiesel content to 40%](https://feedsoft.ai/events/15729-palm-oil-quotes-support-indonesia-s-plans-to-increase-its-biodiesel-content-to.md) | +5.8% | +15.3% |
| 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 | 2023-04-06 | [Indonesia must jump ethanol feedstock hurdle to repeat biodiesel success](https://feedsoft.ai/events/15738-indonesia-must-jump-ethanol-feedstock-hurdle-to-repeat-biodiesel-success.md) | +1.9% | -15.0% |

## Sources

- enerdata.net: https://www.enerdata.net/publications/daily-energy-news/indonesia-seeks-options-finance-its-biodiesel-subsidy-scheme.html

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