The Indonesian government is reviewing a policy to regulate crude palm oil (CPO) exports in an effort to ensure domestic supply meets the demand for the B50 biodiesel program. This policy is being considered to support the long-term stability of the national biofuel mandate, which blends 50% palm-based fuel with diesel. According to Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, the government will prioritize local needs over exports to maintain the sustainability of the program, given the rising global and domestic demand for CPO.
The regulation would allow the government to adjust export volumes based on domestic requirements, especially as Indonesia moves toward increasing its biodiesel blending ratio. Luhut stated that ongoing discussions involve setting up a dedicated team to assess the balance between export obligations and internal needs. While details are still being finalized, this initiative signals Indonesia’s commitment to energy transition and reduced reliance on fossil fuels. It also reflects strategic efforts to secure raw materials critical for energy resilience while maintaining stability in the international palm oil market.
