Indonesian palm oil producers can meet B50 biodiesel demand this year but warn of future production needs

Indonesia's B50 biodiesel mandate requires increased crude palm oil (CPO) output, with industry warning of future production needs. This year's 50% blend is expected to raise domestic CPO consumption for biodiesel to 17 million tonnes, which current production can meet. However, sustained policy requires higher output in coming years. Smallholders suggest improving yields on existing farms through replanting, not expanding plantations, to boost production and avoid disrupting exports.