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A union of Indonesian oil palm smallholders is challenging in court the allocation of the Indonesian Oil Palm Plantation Fund, which collected 14.2 trillion rupiah ($1.03 billion) in 2017. The union says only 1% went to replanting while 89% went to biodiesel subsidies.
The government has promised to shift the split to 22:70 this year and defends the subsidy as necessary to keep biodiesel competitive.
The biodiesel subsidy supports palm oil demand by making biodiesel output viable, while replanting funds affect future palm supply. A court ruling that reallocates the fund could shift palm oil demand and supply over time.
news.mongabay.comHans Nicholas JongApr 24, 2018After 513 past neutral policy events, Palm Oil moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
