# Indonesia bets big on biodiesel to limit costs of oil imports

> Indonesia plans to cut diesel imports by mandating that all diesel, including for power plants and railways, contain biodiesel, typically palm oil based. Officials estimate the policy will save about $6 billion per year in oil import costs.

- Date: 2018-08-07 · published 2018-08-07T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/63404-indonesia-bets-big-on-biodiesel-to-limit-costs-of-oil-imports
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

A large biodiesel mandate would absorb significant palm oil volumes domestically, tightening exportable supply and supporting palm oil prices.

## Read by commodity

- SBO: bullish ▲
- BRENT: neutral
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2018-07-24 | [New biodiesel recipe can cut Indonesia's fuel imports](https://feedsoft.ai/events/63911-new-biodiesel-recipe-can-cut-indonesia-s-fuel-imports.md) | +0.1% | -0.2% |
| 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 | 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) | -0.7% | +7.2% |
| PALMOIL | 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) | +8.5% | +13.1% |
| SBO | 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) | +1.3% | +10.6% |
| SBO | 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) | +7.8% | +12.3% |
| SBO | 2025-02-01 | [Indonesia expects to reach full implementation of B40 biodiesel in March](https://feedsoft.ai/events/15581-indonesia-expects-to-reach-full-implementation-of-b40-biodiesel-in-march.md) | -0.9% | +0.0% |

## Sources

- reuters.com: https://www.reuters.com/article/us-indonesia-biodiesel/indonesia-bets-big-on-biodiesel-to-limit-costs-of-oil-imports-idUSKBN1KS0CC/

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