# Indonesian oil palm smallholders sue state over subsidy to biofuel producers

> 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.

- Date: 2018-04-24 · published 2018-04-24T12:00:00.000Z
- Category: policy · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/65411-indonesian-oil-palm-smallholders-sue-state-over-subsidy-to-biofuel-producers
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-05-24 | [Palm oil watchdog to create separate standards for smallholders - Indonesia director \| The Star](https://feedsoft.ai/events/59195-palm-oil-watchdog-to-create-separate-standards-for-smallholders-indonesia.md) | +0.6% | -0.1% |
| PALMOIL | 2025-02-03 | [Indonesian palm oil smallholders and the EUDR: Impacts and ways forward - Fern](https://feedsoft.ai/events/26073-indonesian-palm-oil-smallholders-and-the-eudr-impacts-and-ways-forward-fern.md) | +3.6% | +3.5% |
| PALMOIL | 2023-10-03 | [Palm Oil News - Biodiesel Subsidy Delivered Profits for Corporates: Put Away Smallholders](https://feedsoft.ai/events/15695-palm-oil-news-biodiesel-subsidy-delivered-profits-for-corporates-put-away.md) | -2.7% | -1.5% |
| PALMOIL | 2026-01-08 | [Indonesia mulls palm oil export levy hike to support biodiesel mandate \| Reuters](https://feedsoft.ai/events/15499-indonesia-mulls-palm-oil-export-levy-hike-to-support-biodiesel-mandate-reuters.md) | +0.2% | +7.4% |
| PALMOIL | 2022-04-29 | [How Indonesia's policy stumbles over palm oil have unfolded \| Reuters](https://feedsoft.ai/events/41971-how-indonesia-s-policy-stumbles-over-palm-oil-have-unfolded-reuters.md) | +3.3% | -0.6% |

## Sources

- news.mongabay.com: https://news.mongabay.com/2018/04/indonesian-farmers-file-judicial-review-on-palm-oil-fund-as-big-companies-dominate-the-fund/

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