Minister of Agriculture (Mentan), Andi Amran Sulaiman said, the 50% biodiesel program (B50) will boost the price of palm oil (Crude Palm Oil/CPO) in the global market. "Last year we exported 26 million tons (CPO). If we remove 5 million tons, that means there are only 21 million tons left. Will the price go up or down? Yes, it will go up," said Amran when met after the thanksgiving event for 4 million tons of Government Rice Reserves (CBP), at his residence, Jakarta, Friday (30/5). B50 is a fuel consisting of a mixture of 50 percent biodiesel and 50% conventional diesel. To produce B50 biodiesel, Minister of Agriculture Amran said, the government needs around 5.3 million tons of CPO. This need will be taken from Indonesia's total CPO exports which reached 26 million tons, especially from countries that complicate the CPO market, including the European Union and the United States. “Europe imports 2.3 million, America 1.7 million. We need 5.3 million to make B50 biofuel," said Amran 

Furthermore, he added, this step has the potential to increase the price of CPO in the global market. This is because the total exports that previously reached 26 million tons will be reduced to around 21 million tons because some will be diverted to domestic needs through the B50 program. Minister of Agriculture Amran emphasized that the increase in the price of CPO will have a positive impact on oil palm farmers. With a higher selling price for fresh fruit bunches (FFB), farmers' income is certain to increase, so that it can boost their welfare.

Source:
https://news.majalahhortus.com/mentan-amran-program-b50-bakal-dongkrak-harga-cpo-di-pasar-global/