Indonesia's Biodiesel Surge Tightens Global Palm Oil Supply, Boosts Prices

Palm Oil (CPO)

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Indonesia's biodiesel usage surged by 16% year-on-year in January and February, reaching 2.17 million kiloliters, according to the country's biofuel producers association. Ernest Gunawan, the association's secretary general, attributed this rise to the complete enforcement of Indonesia's mandatory 35% palm oil-based biodiesel blending initiative, leading to higher domestic consumption. The increasing biofuel production in the largest palm oil producing country, Indonesia has led to a tight supply in the global market unlike last year supporting BMD Palm oil prices.