# Palm Oil News - Biodiesel Policy: One Factor to Increase CPO Price

> Indonesian officials say a palm oil fund subsidy of about $50 per ton could raise CPO prices over time by supporting biodiesel. The Indonesian Palm Oil Producers Association and the fund's director discussed biodiesel absorption, with 71% of collected funds distributed to subsidise biodiesel. The program is targeted to expand toward 2020.

- Date: 2017-01-13 · published 2017-01-13T12:00:00.000Z
- Category: policy · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/72873-palm-oil-news-biodiesel-policy-one-factor-to-increase-cpo-price
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

A government-funded biodiesel subsidy that expands domestic palm oil demand is a structural support for palm oil prices, though the effect is described as gradual.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-10-18 | [Palm Oil News - B50 Biodiesel Blend Increase Could Press Palm Oil FFB Prices, UI Researcher's Analysis](https://feedsoft.ai/events/15524-palm-oil-news-b50-biodiesel-blend-increase-could-press-palm-oil-ffb-prices-ui.md) | -0.7% | -6.5% |
| PALMOIL | 2017-06-17 | [Palm Oil News - The Reasons Why PFMA Focuses to Biodiesel](https://feedsoft.ai/events/70370-palm-oil-news-the-reasons-why-pfma-focuses-to-biodiesel.md) | -0.6% | +2.2% |
| PALMOIL | 2024-03-25 | [Biodiesel to drive 2025 palm oil prices: IPOC \| Latest Market News](https://feedsoft.ai/events/15660-biodiesel-to-drive-2025-palm-oil-prices-ipoc-latest-market-news.md) | +0.1% | -1.8% |
| 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 | 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% |

## Sources

- en.infosawit.com: https://en.infosawit.com/news/5323/biodiesel-policy--one-factor-to-increase-cpo-price

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