Lang
The Indonesian Palm Oil Association (GAPKI) expects Indonesia’s crude palm oil exports this year to fall by up to 1.5 million tonnes.
The association believes this decline could complicate the government’s plan to implement the mandatory 50% biodiesel blending program, known as B50, in 2026.
GAPKI chairman Eddy Martono said B50 financing currently depends on levies imposed on palm oil exports.
With palm oil production tending to stagnate, he urged the government to review its policy on implementing B50, which would be an upgrade from the current B40 program.
He said that under current production conditions, implementing B50 would be difficult because output is relatively stagnant while exports are expected to decline.
According to GAPKI data, Indonesia produced around 52 million tonnes of crude palm oil in 2024, while domestic consumption reached 23.8 million tonnes, equal to 45.2% of total output.
Production is expected to rise slightly this year to 53.6 million tonnes, while palm oil exports are forecast to fall to 27.5 million tonnes in 2025.
Lower palm oil exports would automatically reduce export levy revenues, which are the main funding source for the government’s biodiesel support program.
Separately, Energy and Mineral Resources Minister Bahlil Lahadalia said the government is preparing a new regulation to make B40 pricing more suitable for different industrial sectors.
He said the government is looking for a formula that makes B40 more competitive and less costly for industry.