Palm oil news. July 2026
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July 21, 2026
Danantara Indonesia unit says 'soft launch' of commodity export system to begin in September
JAKARTA, July 21 (Reuters) - Danantara Indonesia's dedicated strategic commodity export unit said on Tuesday that it would start processing export data through a national "integrated governance system" in September, as it prepares to launch the country's controversial new export regime.
Here are the details:
https://www.reuters.com/world/asia-pacific/danantara-indonesia-unit-says-soft-launch-commodity-export-system-begin-2026-07-21/
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Indonesia expects B50 biodiesel programme to save 10.8 billion USD in 2026
Under the B50 programme, diesel fuel is blended with 50% biodiesel produced from domestically sourced palm oil, reducing the country's dependence on imported fossil fuels while strengthening national energy security.
Hanoi (VNA) – Indonesia expects to save around 170 trillion IDR (around 10.8 billion USD) in 2026 through the mandatory implementation of its B50 biodiesel programme, according to the Ministry of Energy and Mineral Resources (ESDM).
Under the B50 programme, diesel fuel is blended with 50% biodiesel produced from domestically sourced palm oil, reducing the country's dependence on imported fossil fuels while strengthening national energy security.
ESDM spokesperson Dwi Anggia said the programme marks a new phase in Indonesia's pursuit of energy sovereignty, with half of the diesel consumed nationwide now derived from crops grown and harvested by local farmers, Indonesia's Antara news agency reported.
According to Anggia, the savings generated by lower fuel imports will support national development and help shield the economy from fluctuations in global oil prices.
The ministry also estimates that the programme could create up to 2.1 million jobs across the biodiesel value chain, from feedstock production and processing to fuel distribution.
In addition to its economic impact, the B50 programme is expected to make a significant contribution to Indonesia's climate commitments. The ministry projects that expanding biodiesel use will reduce carbon dioxide (CO₂) emissions by around 44.46 million tonnes in 2026, supporting the country's efforts to curb greenhouse gas emissions and accelerate its transition to cleaner energy./.
https://en.vietnamplus.vn/indonesia-expects-b50-biodiesel-programme-to-save-108-billion-usd-in-2026-post348601.vnp
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Bhatti Vikramarka inaugurates Integrated Oil Palm Complex, calls oil palm an assured source of income even during drought
Deputy Chief Minister Mallu Bhatti Vikramarka on Monday said oil palm cultivation offers farmers assured income even during adverse conditions such as El Nino and drought, reaffirming the government’s continued support to promote the crop.
He was speaking after inaugurating Godrej Agrovet Limited’s ₹300-crore Integrated Oil Palm Complex, claimed to be India’s first-of-its-kind facility, at Anjanapuram village in Konijerla mandal of Khammam district.
https://manufacturing.economictimes.indiatimes.com/news/food-beverages/godrej-agrovet-inaugurates-indias-first-integrated-oil-palm-complex-in-telangana/132511004
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Danantara Indonesia unit says 'soft launch' of commodity export system to begin in September
JAKARTA, July 21 (Reuters) - Danantara Indonesia's dedicated strategic commodity export unit said on Tuesday that it would start processing export data through a national "integrated governance system" in September, as it prepares to launch the country's controversial new export regime.
Here are the details:
- Set up by the sovereign wealth fund on June 1, PT Danantara Sumberdaya Indonesia (DSI) is part of President Prabowo Subianto's plan to channel exports of key commodities such as coal, palm oil and ferroalloys through a central government-run agency to tackle concerns about under-invoicing and transfer pricing, which the government says have caused significant losses.
- DSI said in a statement: "The implementation commencing in September 2026 will serve as the soft launch of the integrated export governance system, whereby export data and export administration for strategic commodities will begin to be processed through the national governance mechanism in accordance with applicable regulations."
- "This stage does not change DSI's implementation approach, which remains phased and market-oriented," DSI said, adding it would still act as an intermediary and "governance facilitator" focused on transparency and ensuring continuity for exporters and international buyers.
- In a separate statement on Tuesday, DSI said it was still improving export traceability and identifying discrepancies in consolidated transaction data, although such discrepancies do not automatically constitute evidence of violations or under-invoicing.
- "As implementation remains at an early stage, it is still too soon to draw conclusions regarding the extent of improvements or the impact on under-invoicing practices," the company added.
https://www.reuters.com/world/asia-pacific/danantara-indonesia-unit-says-soft-launch-commodity-export-system-begin-2026-07-21/
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Indonesia expects B50 biodiesel programme to save 10.8 billion USD in 2026
Under the B50 programme, diesel fuel is blended with 50% biodiesel produced from domestically sourced palm oil, reducing the country's dependence on imported fossil fuels while strengthening national energy security.
Hanoi (VNA) – Indonesia expects to save around 170 trillion IDR (around 10.8 billion USD) in 2026 through the mandatory implementation of its B50 biodiesel programme, according to the Ministry of Energy and Mineral Resources (ESDM).
Under the B50 programme, diesel fuel is blended with 50% biodiesel produced from domestically sourced palm oil, reducing the country's dependence on imported fossil fuels while strengthening national energy security.
ESDM spokesperson Dwi Anggia said the programme marks a new phase in Indonesia's pursuit of energy sovereignty, with half of the diesel consumed nationwide now derived from crops grown and harvested by local farmers, Indonesia's Antara news agency reported.
According to Anggia, the savings generated by lower fuel imports will support national development and help shield the economy from fluctuations in global oil prices.
The ministry also estimates that the programme could create up to 2.1 million jobs across the biodiesel value chain, from feedstock production and processing to fuel distribution.
In addition to its economic impact, the B50 programme is expected to make a significant contribution to Indonesia's climate commitments. The ministry projects that expanding biodiesel use will reduce carbon dioxide (CO₂) emissions by around 44.46 million tonnes in 2026, supporting the country's efforts to curb greenhouse gas emissions and accelerate its transition to cleaner energy./.
https://en.vietnamplus.vn/indonesia-expects-b50-biodiesel-programme-to-save-108-billion-usd-in-2026-post348601.vnp
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Bhatti Vikramarka inaugurates Integrated Oil Palm Complex, calls oil palm an assured source of income even during drought
Deputy Chief Minister Mallu Bhatti Vikramarka on Monday said oil palm cultivation offers farmers assured income even during adverse conditions such as El Nino and drought, reaffirming the government’s continued support to promote the crop.
He was speaking after inaugurating Godrej Agrovet Limited’s ₹300-crore Integrated Oil Palm Complex, claimed to be India’s first-of-its-kind facility, at Anjanapuram village in Konijerla mandal of Khammam district.
https://manufacturing.economictimes.indiatimes.com/news/food-beverages/godrej-agrovet-inaugurates-indias-first-integrated-oil-palm-complex-in-telangana/132511004
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July 20, 2026
Indonesian Palm Oil Diplomacy Must Be More Aggressive As Global Trade Threats Increase
JAKARTA - Indonesia needs to strengthen palm oil diplomacy as part of a strategy to maintain the competitiveness of national commodities amid increasing global trade barriers.
Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), Tungkot Sipayung, said that palm oil diplomacy efforts need to use a proactive approach. He emphasized that palm oil diplomacy is ideally not reactive but can serve as a market intelligence instrument (market intelligence) that anticipates potential obstacles since the policy formulation stage.Referensi Geografis
Tungkot Sipayung explained that the success of palm oil diplomacy is not only measured by the ability to resolve trade disputes but also by effectiveness in preventing the emergence of policies that can harm the interests of the national palm oil industry.
"The good palm oil diplomacy should be if we succeed in moderating or preventing the emergence of other countries' policies that are detrimental to the national palm oil industry. Therefore, palm oil diplomacy should work as market intelligence," he said in Jakarta.
Tungkot admitted that the diplomatic efforts made by the Indonesian government over the past few years have shown positive results, especially through the diversification of the palm oil export market. This strategy has succeeded in reducing Indonesia's dependence on traditional markets, especially the European Union region.
Currently, Indonesian palm oil exports have spread to various regions in the world, including India, China, Pakistan, Bangladesh, countries in Africa, the European Union, and North America.
"The share of the European Union as our export destination is only 8-10 percent. So by diversifying the export destination countries, we are no longer dependent on the European Union market," he said.
On the other hand, the government through the Plantation Fund Management Agency (BPDP) continues to strengthen palm oil diplomacy at the international level through various programs involving the government, industry players, academics, and other stakeholders.
Various initiatives are carried out through strengthening relations with major importing countries, participation in trade missions to expand export markets, litigation and advocacy against policies that discriminate against palm oil products, positive campaigns through international media, and support for the organization of various palm oil forums and conferences on a global scale.
Meanwhile, the Head of the South East Asia Food and Agriculture Science & Technology (SEAFAST) Center of IPB University, Puspo Edi Giriwono, assessed that palm diplomacy is still a strategic need for the national palm oil industry because various forms of trade barriers continue to emerge in a number of countries.
He gave an example of the implementation of sustainability standards in several countries which are often discriminatory against palm oil commodities when compared to other vegetable oils.
"For example, why should only palm oil be sustainable, should there be no deforestation, can it only enter the European market? If you think about it, for example, soybean oil is produced by Brazil and they are still doing deforestation. But, it is not enforced (the rule)," he said.
However, Puspo Edi emphasized that strengthening international diplomacy must go hand in hand with improving the governance of the palm oil industry in the country.
According to him, competitiveness will be stronger if supported by production practices that meet the principles of sustainability, ranging from environmental to social aspects.
He assessed that improving governance, production processes, and product quality are important factors in increasing international market confidence in Indonesian palm oil products.
"We will improve the process and production in our country so that we can produce quality products, increase competitiveness, and so on," he concluded.
https://voi.id/en/economy/585576
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Indonesia To Halt Diesel Import Starting July 2026 On B50 Success, Says President Prabowo
President Prabowo Subianto announced that Indonesia will completely halt diesel imports starting July 2026, following the country’s success in developing its B50 palm oil-based biodiesel.
Speaking at a harvest festival at the Abdulrachman Saleh Air Force Base in Malang, East Java, on Friday, July 17, the President highlighted Indonesia’s position as a global pioneer in biofuel technology.
Indonesia is the first country in the world capable of producing a diesel blend containing 50 percent palm oil-based biodiesel.
“We have succeeded in becoming the first country in the world to produce B50,” Prabowo said, according to a statement released by the Presidential Secretariat.
“We are now producing diesel fuel from palm oil. So, starting this July, we will no longer import diesel fuel from abroad.”
The head of state explained that terminating diesel imports will yield significant economic benefits for the public.
By halting foreign fuel purchases, the government aims to redirect state funds directly into local agricultural sectors.
“It is better if the money circulates in Indonesia, benefiting palm oil farmers throughout the country,” Prabowo remarked.
The transition to B50 is part of a broader, accelerated strategy to leverage Indonesia’s abundant domestic resources for energy security.
Beyond biodiesel, the government has kicked off the development of E10—a gasoline variant blended with 10 percent bioethanol—as a stepping stone toward broader bioethanol adoption.
Indonesia aims to eventually scale this up to an E20 blend.
https://www.businesstoday.com.my/2026/07/19/indonesia-to-halt-diesel-import-starting-july-2026-on-b50-success-says-president/
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Indonesia's B50 mandate will not affect crude palm oil exports says Ministry
Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has assured that the mandatory implementation of the 50 percent biodiesel (B50) program will not reduce Indonesia's crude palm oil (CPO) export volume.
Expert Staff for Connectivity and Service Development at the ministry, Dida Gardera, stated here on Monday that the assurance is backed by the country’s successful track record during the transition from B35 to B40 in 2024.
"From 2024 to 2025, as we stepped up from B35 to B40, domestic palm oil demand grew by roughly 3 to 4 million kiloliters (KL). Crucially, our exports also increased by 3 to 4 million KL over that same period,” Dida explained.
He emphasized that the government is maintaining a delicate balance to ensure that international trade is not compromised, as robust exports serve as an essential incentive for the domestic biodiesel sector.
According to him, the government has prioritized three key sectors in its palm oil strategy: the B50 mandate, the domestic availability of cooking oil, and the welfare of smallholder plantations.
To ensure the simultaneous success of these three priorities, the ministry continues to coordinate closely with relevant agencies, including the Plantation Fund Management Agency (BPDP).
"We will certainly continue to monitor and evaluate the situation. But so far, in terms of CPO volume, we have been able to meet all domestic and international needs. Thank God, the budget and cash flow also remain sufficient," he added.
The government officially launched the B50 mandate in July 2023 as part of its strategic efforts to reduce carbon emissions and strengthen national energy security.
Beyond its environmental benefits, the B50 policy is projected to save the country approximately Rp170 trillion (US$9.48 billion) in foreign exchange by the end of 2026, boost the added value of domestic CPO, and create employment opportunities for around 2.1 million people.
While the policy is officially underway following its presidential launch two weeks ago, full integration will follow a phased timeline.
A three-month transition window has been established to allow fuel distributors to deplete existing B40 stocks and adjust technical blending processes to meet the B50 standard.
"Everything is ready in the field. However, there will naturally be a transition process due to residual B40 stocks. In principle, the program is already running, and we will continue our strict monitoring and evaluation," Dida concluded.
Related news: B50 program to save Indonesia Rp170 trillion in 2026: Ministry
https://en.antaranews.com/amp/news/423301/govt-assures-b50-mandate-not-affect-cpo-exports
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Is your cooking oil making you sick? Dietitian reveals the composition of fats in 10 types of edible oils
Ancient wisdom, not social media trends, holds the key to understanding edible oils, argues Dr Jyoti Arora.
In Ayurveda, food was never seen just as fuel for the body. Ancient Indian texts refer to sneha, a term associated with oils and healthy fats, as a source of nourishment, warmth, and vitality. Traditional Indian diets consider edible oils important for a balanced lifestyle. Different regions used oils suited to their climate, cuisine and lifestyle. Mustard oil gained popularity in northern and eastern India, coconut oil in the south, and sesame and groundnut oils in many other parts of the country.
Is unsaturated fat good or bad for you?
Today, edible oils are one of the most misunderstood components of nutrition. Social media trends, influencer advice and fear-based marketing often label one oil as “healthy” and another as “harmful.” This leaves consumers confused about what to use in their kitchens. Nutrition experts say that no single oil determines health outcomes. The larger issues are overeating, poor diets and dependence on processed foods.
What is the composition of edible oils?
A common myth is that all edible oils are the same. In reality, each oil has a unique composition of fatty acids, nutrients, flavour and smoke point. Mustard oil contains omega-3 fatty acids. Sunflower oil is light and versatile. Palm and rice bran oils contain tocotrienols, which are associated with cholesterol management.
"Palm oil is popular due to its heat stability and balanced mix of saturated and unsaturated fats, including oleic acid, a monounsaturated fat also found in olive oil. As different oils serve various culinary and nutritional roles, experts recommend using a variety rather than sticking to just one type" Dr Jyoti Arora, Chief Dietitian & Head – Integrative Nutrition at the All India Institute of Ayurveda (AIIA), Ministry of AYUSH, Government of India, tells Health Shots.
Separating facts from popular myths
Another misconception is that cooking with oil automatically makes food unhealthy. Since oils contain fats, they are often blamed for obesity and heart disease. However, fats are vital for the body. For instance, palm oil is a rich source of Vitamin E, especially tocotrienols, which are known for their antioxidant properties.
The Indian Council of Medical Research–National Institute of Nutrition Dietary Guidelines for Indians 2024 also recognise palm oil as one of the edible oils that can be consumed as part of a balanced diet. These oils help absorb vitamins, regulate hormones, support cell function and provide energy. The problem is not these oils themselves, but excessive consumption and unhealthy eating habits.
Are home-cooked meals healthier?
Home-cooked meals with moderate amounts of oil are much healthier than processed foods high in fat, sugar and salt. Cooking methods matter too. Steaming, boiling, sautéing with limited oil and air-frying can help reduce the consumption of unnecessary fat while preserving flavour and nutrition.
Does the Mediterranean diet use olive oil?
The popularity of Mediterranean diets has created the impression that olive oil is the only healthy cooking oil. While olive oil certainly offers benefits, it is not the only nutritious option. Traditional Indian oils such as mustard, sesame, sunflower, groundnut and palm can all be part of a balanced diet. Consumers should not mindlessly follow imported food trends without considering Indian cooking styles, which often involve high-temperature cooking techniques such as frying and tempering.
Is it unhealthy to reuse cooking oil?
Another unhealthy practice is repeatedly reusing cooking oil. In many homes and restaurants, frying oil is reheated multiple times to reduce waste. Experts caution that reheating oil too often can produce harmful oxidised compounds and trans fats connected to heart disease and digestive problems. This is especially common with food prepared outside the home, where consumers cannot oversee oil use.
Is palm oil bad for health?
Confusion also arises from labels such as “cholesterol-free,” “sugar-free”, or now, “palm oil free” Many people assume such products can be consumed freely. No product carrying these labels comes with “before” and “after” readings indicating how much healthier it has become. Even healthier ingredients, including cooking oils, should be consumed as part of a balanced diet, as excess calories from any source can contribute to weight gain and metabolic disorders.
The real issue is balance
There is a reason why so many oils have been part of our centuries-old cuisines. These oils provide essential fatty acids and antioxidants that may help protect against disease. Equally important is how these oils are stored and used. Every oil should be used according to its smoke point, and ideally, should not be used more than once.
Why does food taste better with oil?
Another common misconception is the belief that more oil automatically improves the taste of food. While oil contributes to flavour and texture, excessive use can overpower other ingredients and increase calorie intake. Cooking with spices, herbs and fresh ingredients can create flavourful meals without excess fat.
The real problem is not with edible oils but with misinformation and the increasing consumption of foods beyond our control. Good health depends on proper storage, portion control, balanced diets, regular physical activity and informed food choices.
https://www.hindustantimes.com/lifestyle/health/is-your-cooking-oil-making-you-sick-dietitian-reveals-the-composition-of-fats-in-these-edible-oils-101784305158886.html
Indonesian Palm Oil Diplomacy Must Be More Aggressive As Global Trade Threats Increase
JAKARTA - Indonesia needs to strengthen palm oil diplomacy as part of a strategy to maintain the competitiveness of national commodities amid increasing global trade barriers.
Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), Tungkot Sipayung, said that palm oil diplomacy efforts need to use a proactive approach. He emphasized that palm oil diplomacy is ideally not reactive but can serve as a market intelligence instrument (market intelligence) that anticipates potential obstacles since the policy formulation stage.Referensi Geografis
Tungkot Sipayung explained that the success of palm oil diplomacy is not only measured by the ability to resolve trade disputes but also by effectiveness in preventing the emergence of policies that can harm the interests of the national palm oil industry.
"The good palm oil diplomacy should be if we succeed in moderating or preventing the emergence of other countries' policies that are detrimental to the national palm oil industry. Therefore, palm oil diplomacy should work as market intelligence," he said in Jakarta.
Tungkot admitted that the diplomatic efforts made by the Indonesian government over the past few years have shown positive results, especially through the diversification of the palm oil export market. This strategy has succeeded in reducing Indonesia's dependence on traditional markets, especially the European Union region.
Currently, Indonesian palm oil exports have spread to various regions in the world, including India, China, Pakistan, Bangladesh, countries in Africa, the European Union, and North America.
"The share of the European Union as our export destination is only 8-10 percent. So by diversifying the export destination countries, we are no longer dependent on the European Union market," he said.
On the other hand, the government through the Plantation Fund Management Agency (BPDP) continues to strengthen palm oil diplomacy at the international level through various programs involving the government, industry players, academics, and other stakeholders.
Various initiatives are carried out through strengthening relations with major importing countries, participation in trade missions to expand export markets, litigation and advocacy against policies that discriminate against palm oil products, positive campaigns through international media, and support for the organization of various palm oil forums and conferences on a global scale.
Meanwhile, the Head of the South East Asia Food and Agriculture Science & Technology (SEAFAST) Center of IPB University, Puspo Edi Giriwono, assessed that palm diplomacy is still a strategic need for the national palm oil industry because various forms of trade barriers continue to emerge in a number of countries.
He gave an example of the implementation of sustainability standards in several countries which are often discriminatory against palm oil commodities when compared to other vegetable oils.
"For example, why should only palm oil be sustainable, should there be no deforestation, can it only enter the European market? If you think about it, for example, soybean oil is produced by Brazil and they are still doing deforestation. But, it is not enforced (the rule)," he said.
However, Puspo Edi emphasized that strengthening international diplomacy must go hand in hand with improving the governance of the palm oil industry in the country.
According to him, competitiveness will be stronger if supported by production practices that meet the principles of sustainability, ranging from environmental to social aspects.
He assessed that improving governance, production processes, and product quality are important factors in increasing international market confidence in Indonesian palm oil products.
"We will improve the process and production in our country so that we can produce quality products, increase competitiveness, and so on," he concluded.
https://voi.id/en/economy/585576
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Indonesia To Halt Diesel Import Starting July 2026 On B50 Success, Says President Prabowo
President Prabowo Subianto announced that Indonesia will completely halt diesel imports starting July 2026, following the country’s success in developing its B50 palm oil-based biodiesel.
Speaking at a harvest festival at the Abdulrachman Saleh Air Force Base in Malang, East Java, on Friday, July 17, the President highlighted Indonesia’s position as a global pioneer in biofuel technology.
Indonesia is the first country in the world capable of producing a diesel blend containing 50 percent palm oil-based biodiesel.
“We have succeeded in becoming the first country in the world to produce B50,” Prabowo said, according to a statement released by the Presidential Secretariat.
“We are now producing diesel fuel from palm oil. So, starting this July, we will no longer import diesel fuel from abroad.”
The head of state explained that terminating diesel imports will yield significant economic benefits for the public.
By halting foreign fuel purchases, the government aims to redirect state funds directly into local agricultural sectors.
“It is better if the money circulates in Indonesia, benefiting palm oil farmers throughout the country,” Prabowo remarked.
The transition to B50 is part of a broader, accelerated strategy to leverage Indonesia’s abundant domestic resources for energy security.
Beyond biodiesel, the government has kicked off the development of E10—a gasoline variant blended with 10 percent bioethanol—as a stepping stone toward broader bioethanol adoption.
Indonesia aims to eventually scale this up to an E20 blend.
https://www.businesstoday.com.my/2026/07/19/indonesia-to-halt-diesel-import-starting-july-2026-on-b50-success-says-president/
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Indonesia's B50 mandate will not affect crude palm oil exports says Ministry
Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has assured that the mandatory implementation of the 50 percent biodiesel (B50) program will not reduce Indonesia's crude palm oil (CPO) export volume.
Expert Staff for Connectivity and Service Development at the ministry, Dida Gardera, stated here on Monday that the assurance is backed by the country’s successful track record during the transition from B35 to B40 in 2024.
"From 2024 to 2025, as we stepped up from B35 to B40, domestic palm oil demand grew by roughly 3 to 4 million kiloliters (KL). Crucially, our exports also increased by 3 to 4 million KL over that same period,” Dida explained.
He emphasized that the government is maintaining a delicate balance to ensure that international trade is not compromised, as robust exports serve as an essential incentive for the domestic biodiesel sector.
According to him, the government has prioritized three key sectors in its palm oil strategy: the B50 mandate, the domestic availability of cooking oil, and the welfare of smallholder plantations.
To ensure the simultaneous success of these three priorities, the ministry continues to coordinate closely with relevant agencies, including the Plantation Fund Management Agency (BPDP).
"We will certainly continue to monitor and evaluate the situation. But so far, in terms of CPO volume, we have been able to meet all domestic and international needs. Thank God, the budget and cash flow also remain sufficient," he added.
The government officially launched the B50 mandate in July 2023 as part of its strategic efforts to reduce carbon emissions and strengthen national energy security.
Beyond its environmental benefits, the B50 policy is projected to save the country approximately Rp170 trillion (US$9.48 billion) in foreign exchange by the end of 2026, boost the added value of domestic CPO, and create employment opportunities for around 2.1 million people.
While the policy is officially underway following its presidential launch two weeks ago, full integration will follow a phased timeline.
A three-month transition window has been established to allow fuel distributors to deplete existing B40 stocks and adjust technical blending processes to meet the B50 standard.
"Everything is ready in the field. However, there will naturally be a transition process due to residual B40 stocks. In principle, the program is already running, and we will continue our strict monitoring and evaluation," Dida concluded.
Related news: B50 program to save Indonesia Rp170 trillion in 2026: Ministry
https://en.antaranews.com/amp/news/423301/govt-assures-b50-mandate-not-affect-cpo-exports
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Is your cooking oil making you sick? Dietitian reveals the composition of fats in 10 types of edible oils
Ancient wisdom, not social media trends, holds the key to understanding edible oils, argues Dr Jyoti Arora.
In Ayurveda, food was never seen just as fuel for the body. Ancient Indian texts refer to sneha, a term associated with oils and healthy fats, as a source of nourishment, warmth, and vitality. Traditional Indian diets consider edible oils important for a balanced lifestyle. Different regions used oils suited to their climate, cuisine and lifestyle. Mustard oil gained popularity in northern and eastern India, coconut oil in the south, and sesame and groundnut oils in many other parts of the country.
Is unsaturated fat good or bad for you?
Today, edible oils are one of the most misunderstood components of nutrition. Social media trends, influencer advice and fear-based marketing often label one oil as “healthy” and another as “harmful.” This leaves consumers confused about what to use in their kitchens. Nutrition experts say that no single oil determines health outcomes. The larger issues are overeating, poor diets and dependence on processed foods.
What is the composition of edible oils?
A common myth is that all edible oils are the same. In reality, each oil has a unique composition of fatty acids, nutrients, flavour and smoke point. Mustard oil contains omega-3 fatty acids. Sunflower oil is light and versatile. Palm and rice bran oils contain tocotrienols, which are associated with cholesterol management.
"Palm oil is popular due to its heat stability and balanced mix of saturated and unsaturated fats, including oleic acid, a monounsaturated fat also found in olive oil. As different oils serve various culinary and nutritional roles, experts recommend using a variety rather than sticking to just one type" Dr Jyoti Arora, Chief Dietitian & Head – Integrative Nutrition at the All India Institute of Ayurveda (AIIA), Ministry of AYUSH, Government of India, tells Health Shots.
Separating facts from popular myths
Another misconception is that cooking with oil automatically makes food unhealthy. Since oils contain fats, they are often blamed for obesity and heart disease. However, fats are vital for the body. For instance, palm oil is a rich source of Vitamin E, especially tocotrienols, which are known for their antioxidant properties.
The Indian Council of Medical Research–National Institute of Nutrition Dietary Guidelines for Indians 2024 also recognise palm oil as one of the edible oils that can be consumed as part of a balanced diet. These oils help absorb vitamins, regulate hormones, support cell function and provide energy. The problem is not these oils themselves, but excessive consumption and unhealthy eating habits.
Are home-cooked meals healthier?
Home-cooked meals with moderate amounts of oil are much healthier than processed foods high in fat, sugar and salt. Cooking methods matter too. Steaming, boiling, sautéing with limited oil and air-frying can help reduce the consumption of unnecessary fat while preserving flavour and nutrition.
Does the Mediterranean diet use olive oil?
The popularity of Mediterranean diets has created the impression that olive oil is the only healthy cooking oil. While olive oil certainly offers benefits, it is not the only nutritious option. Traditional Indian oils such as mustard, sesame, sunflower, groundnut and palm can all be part of a balanced diet. Consumers should not mindlessly follow imported food trends without considering Indian cooking styles, which often involve high-temperature cooking techniques such as frying and tempering.
Is it unhealthy to reuse cooking oil?
Another unhealthy practice is repeatedly reusing cooking oil. In many homes and restaurants, frying oil is reheated multiple times to reduce waste. Experts caution that reheating oil too often can produce harmful oxidised compounds and trans fats connected to heart disease and digestive problems. This is especially common with food prepared outside the home, where consumers cannot oversee oil use.
Is palm oil bad for health?
Confusion also arises from labels such as “cholesterol-free,” “sugar-free”, or now, “palm oil free” Many people assume such products can be consumed freely. No product carrying these labels comes with “before” and “after” readings indicating how much healthier it has become. Even healthier ingredients, including cooking oils, should be consumed as part of a balanced diet, as excess calories from any source can contribute to weight gain and metabolic disorders.
The real issue is balance
There is a reason why so many oils have been part of our centuries-old cuisines. These oils provide essential fatty acids and antioxidants that may help protect against disease. Equally important is how these oils are stored and used. Every oil should be used according to its smoke point, and ideally, should not be used more than once.
Why does food taste better with oil?
Another common misconception is the belief that more oil automatically improves the taste of food. While oil contributes to flavour and texture, excessive use can overpower other ingredients and increase calorie intake. Cooking with spices, herbs and fresh ingredients can create flavourful meals without excess fat.
The real problem is not with edible oils but with misinformation and the increasing consumption of foods beyond our control. Good health depends on proper storage, portion control, balanced diets, regular physical activity and informed food choices.
https://www.hindustantimes.com/lifestyle/health/is-your-cooking-oil-making-you-sick-dietitian-reveals-the-composition-of-fats-in-these-edible-oils-101784305158886.html
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July 17, 2026
Ready For Take-Off: SAF Opportunity For Indonesia And Malaysia
Jerome Hamilton (Head of Legal, ChemOne Group) and Jessica Xia (White & Case, Associate, Melbourne) contributed to the development of this publication.
Despite recent challenges facing the renewable energy and alternative fuels sectors, many individual countries, multilateral organizations and industry players remain committed to cutting carbon emissions from aviation in the medium to long term. In this context, sustainable aviation fuel (SAF) has emerged as a potential key tool – SAF can be produced from renewable feedstocks, and then blended with conventional fuel and 'dropped into' existing aviation fuelling systems. Depending on the feedstock and technological production pathway used, SAF's lifetime carbon intensity can be significantly lower than that of conventional jet fuel.
The SAF industry is still relatively nascent, and SAF is more costly than conventional jet fuel (even after the recent elevation in oil prices associated with hostilities in the Middle East), but as the pressure to decarbonise aviation continues to grow, demand for SAF is likely to rise. The global SAF industry was valued at USD$1.8 billion in 2024 and $2.3 billion in 2025, with a historical market growth rate of 52% annually from 2019 to 2024. While forecasts vary considerably, the value of the global SAF market is expected to exhibit an annual growth rate of between 40% and 65% over the next ten years to 2036.
Historically, the bulk of SAF production has been in North America and Europe. In 2025, North America alone accounted for 47.11% of the global SAF market's revenues. However, as the global SAF market grows in the coming years, Southeast Asia (in addition to China) may carve out substantial market share. In particular, Indonesia and Malaysia are well-positioned for success due to three key factors – the greater availability of feedstock, support from domestic government initiatives and demand driven by international requirements and frameworks. Notwithstanding these positive factors, to capitalise upon the opportunity before them, Indonesia and Malaysia will need to improve feedstock diversification and aggregation, strengthen supportive domestic regulations and policies and further align domestic SAF production with facilitative international frameworks.
Greater availability of SAF feedstock
SAF production and profitability are dependent on the cost and availability of relevant feedstocks. The most technologically mature pathway for SAF production, hydroprocessed esters and fatty acids (HEFA), is used for 80-90% of current global SAF output and relies on the processing of agricultural products, waste oils or fats. SAF producers often face considerable challenges in obtaining supply of these feedstocks in sufficient quantities. However, Indonesia and Malaysia, which account for 58% and 25% of global palm oil production, respectively, may have a competitive advantage in producing SAF based on the use of palm oil (including crude palm oil and palm kernel oil) as a feedstock in the HEFA process.
Nevertheless, palm oil is a controversial input, due to its longstanding association with environmental issues such as indirect land use change (ILUC). Consequently, key markets such as the European Union exclude palm oil-based SAF from counting towards regulatory SAF mandates and targets (see the ReFuelEU Aviation Regulations, read in conjunction with RED III), limiting associated demand. Policies that prevent or disincentivize export credit agencies (ECAs) and commercial lenders from supporting palm oil production (for example, CACIB's CSR Sector Policy and OECD member ECAs' adherence to the Common Approaches) further impact such SAF projects' bankability, although recent relaxation of certain environmental policies in the banking sector may increase the availability of financing. In addition, import restrictions such as those proposed under the EU Deforestation-Free Regulation (EUDR) could, upon their implementation, drastically reduce demand for palm oil-based SAF. Less clear under the foregoing regulations and policies is the treatment of SAF produced from palm oil mill effluent (POME), palm fatty acid distillate (PFAD) and other residues and wastes associated with palm oil production.
Although Indonesia currently relies heavily on palm oil for its SAF production, Indonesia's SAF Industry Development Roadmap, which sets out its proposed national SAF strategy over the next several decades to 2060, envisages a strong near-term focus on used cooking oil (UCO) as a feedstock. However, current aggregation systems in Indonesia are lightly regulated and largely decentralised, with aggregators of varying scale collecting UCO from both businesses and households. Only an estimated 23% of the UCO produced domestically is collected. This represents significant untapped potential, which could be unlocked with targeted investment in improving Indonesia's aggregation systems. While estimates vary, Indonesia likely produces 700,000-900,000 tonnes of 'practically and economically collectable' UCO per year. Aggregation of 715,000 tonnes of UCO per year would provide feedstock for the production of 187,000 kiloliters of SAF. Malaysia has similar challenges and potential, with an estimated collectable volume of 158,000 tonnes of UCO per year, and a somewhat higher (albeit still low) collection rate of 30-45%.
Aggregation aside, the availability of UCO as a SAF feedstock in both countries is also impacted by competing uses. In 2024, approximately 95% of Indonesia's collected UCO was exported to other countries. To increase feedstock availability domestically, the Indonesian government has more recently banned the export of both UCO and POME. Malaysia remains one of the world's largest UCO exporters, but has indicated that export restrictions could be implemented in the near future.
In addition to UCO, alternative options for feedstock diversification may exist in both countries to support SAF production. In particular, palm cultivation and palm oil processing produces certain residues and wastes (for example, POME and PFAD) that can also be used as SAF feedstock. Degraded land, previously used for palm oil production or otherwise, potentially could be used to plant certain energy crops without displacing other viable land uses. Both countries could, theoretically, also import SAF feedstocks to supplement domestic supply, although the economics of such arrangements may be challenging, feedstock exports generally are in high demand and domestic regulations may need to be clarified to facilitate such import (for example, any restrictions on the import of waste products into these countries).
Domestic government initiatives to support SAF
Both Indonesia and Malaysia are working towards stronger policy frameworks and clearer signalling of future governmental intent to create environments that are more conducive to investment in SAF production projects.
Government mandates for SAF usage (as implemented elsewhere, such as in the European Union and Singapore – see below) may be a critical lever to drive such investment by ensuring ongoing domestic demand. To this end, Indonesia's SAF Industry Development Roadmap proposes an incrementally increasing SAF blending requirement for all international flights departing from two of the country's major airports (which account for approximately 53% of Indonesia's international flight traffic). The proposal outlines plans to implement SAF blending requirements of 1% by 2027, 2.5% by 2030 and 50% by 2060. Similarly, Malaysia's Aviation Decarbonisation Blueprint envisions a 1% SAF blending mandate coming into effect in 2027 for all outbound international flights from Kuala Lumpur International Airport, followed by incremental increases in blending requirements culminating in 47% by 2050. However, neither of these proposals has fully crystallized into law, limiting investor certainty.
Both countries are also providing significant state support to accelerate the buildout of SAF production capacity. Indonesia aims to increase capacity to over 1.1 million kiloliters per year by 2030, largely through the activities of its national oil company, Pertamina. Indonesia's existing oil and gas infrastructure is proving to be another advantage in the SAF industry, as refineries, pipelines and other facilities may be modified to support SAF production. For example, Indonesia's sole operational SAF production plant is at Pertamina's refinery in Cilacap, which has been modified to allow production of 238,000 kiloliters of SAF annually (approximately 4,100 barrels per day). Further developments are underway – Indonesia's sovereign wealth fund, Danantara, is planning to boost the Cilacap refinery's production capacity to 6,000 barrels of SAF per day, and Pertamina is currently modifying its Dumai and Balongan refineries to process UCO into SAF as well.
Malaysia is targeting a similar increase in SAF production capacity. EcoCeres' 350,000 tonne SAF plant in Johor was successfully commissioned in October 2025, and PETRONAS, Malaysia's national oil company, is currently developing another 650,000 tonne SAF plant in Johor that is to commence operations by 2030 within the Pengerang Integrated Complex (PIC) (both plants are across the border from Singapore). Malaysia also provided early support to this PETRONAS project through an offtake agreement entered into in 2023, under which Malaysian Aviation Group (wholly owned by Malaysia's sovereign wealth fund) is to take delivery of over 230,000 tonnes of SAF beginning in 2027.
To increase investor confidence and promote further private sector investment in SAF production projects in Malaysia, the Malaysian government is also considering ways to facilitate permitting for SAF facilities' construction and SAF production and export. The SAF industry in both Indonesia and Malaysia is likely to benefit from such targeted domestic policy initiatives.
International requirements / frameworks bolstering SAF demand
Although palm-oil based SAF does not count towards regulatory SAF mandates and targets in the European Union and other markets, the implementation of mandatory SAF blending requirements, and the adoption of voluntary commitments by airlines and other companies, continue to drive demand for SAF production globally.
Both Indonesia and Malaysia enjoy close proximity to key SAF markets in Asia. Singapore has imposed a 1% blending requirement on all outbound flights by 2027. South Korea has proposed a similar mandate, and India is currently considering a similar but non-binding target. In Japan, no mandate has been announced, but recent signalling suggests that, by 2030, it may require fuel for all departing flights to consist of a 10% SAF blend, with such SAF to have at least 50% lower lifetime greenhouse gas emissions than conventional jet fuel. China is also expected to be a major SAF consumer, although it is possible that this demand will be primarily supplied by China's own domestic production.
In addition to national-level blending mandates, certain international regulatory frameworks are likely to continue driving global demand for SAF. In 2027, the International Civil Aviation Organisation (ICAO) is to mandate participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will require almost all ICAO member states (covering approximately 85% of the CO2 emitted by global international aviation) to reduce their carbon emissions using CORSIA eligible fuels (including certified types of SAF), or to purchase accredited carbon offsets. Significantly, under CORSIA, SAF produced from by-products, residues and wastes, which may include POME, PFAD and other residues and wastes associated with palm oil production, will, by default, be assigned no additional ILUC emissions. Therefore, more widespread participation in CORSIA may sharply increase demand for SAF produced from feedstocks that are in relatively higher supply in both Indonesia and Malaysia.
Both Indonesia and Malaysia have made some efforts to prepare for such increased participation in CORSIA. For example, in order for any given type of SAF to qualify as a CORSIA eligible fuel, it must be certified under an ICAO Council-approved Sustainability Certification Scheme, such as the International Sustainability & Carbon Certification (ISCC) CORSIA Certification. Pertamina's Cilacap refinery was the first in Southeast Asia to produce ISCC-certified SAF. Since then, PETRONAS has also locally produced ISCC-certified SAF, and delivered it to the Kuala Lumpur International Airport using an existing multi-product pipeline. Further efforts to align domestic SAF production with the standards required by CORSIA and other facilitative international frameworks are likely to benefit the SAF industry in both Indonesia and Malaysia.
Additionally, the 'book and claim' model of decoupling the environmental attributes of the relevant SAF from its physical molecules may allow SAF producers in Indonesia and Malaysia to access SAF markets worldwide without the need for costly logistics to deliver the SAF to foreign buyers. Although there is currently no globally adopted framework to support this model, programs have been launched by major aviation industry players to facilitate its use.
Bottom line
A combination of greater feedstock availability, domestic government initiatives intended to promote SAF production and international requirements and frameworks supporting SAF demand afford both Indonesia and Malaysia a significant opportunity to expand their respective SAF industries. Although both countries will need to continue to manage challenges such as feedstock diversification and aggregation, supportive domestic regulations and policies and alignment with facilitative international frameworks, Indonesia and Malaysia are well-positioned to become more prominent players in the SAF market both in Asia and globally.
https://www.jdsupra.com/legalnews/ready-for-take-off-saf-opportunity-for-5982051/
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Don’t fall for the ‘No Palm Oil’ trend. It’s not giving you the full health picture
The anti-palm narrative deserves closer scrutiny because at stake is the nutritional security of millions of Indians
By Shoba Suri and Sumit Roy
Visit any grocery store today, and you will see shelves of food items with labels mentioning “No Palm Oil”. Across India, several packaged food brands are introducing and advertising palm-free biscuits, breads, desserts, and snacks, influencing consumer preference for products perceived as cleaner and greener.
But, does removing palm oil really make food healthier or more environment-friendly? The answer is more complex than product packaging suggests. The No Palm trend deserves closer scrutiny, especially when most Indian households are seeking affordable, nutritious food.
The science behind the oil
In India, health concerns have amplified the anti-palm narrative. The controversy stems from the oil’s relatively high saturated fat content compared to some other oils. However, this framing conveys an incomplete picture. Palm oil consists of roughly 45 per cent fatty acids (primarily palmitic acid), with the rest composed of monounsaturated and polyunsaturated fats. On the fat scale, palm oil lies somewhere between highly saturated fats such as butter, ghee, and coconut oil, and more unsaturated oils such as sunflower, soybean, canola, and mustard.
With the global phase-out of industrial trans fats that are associated with increased cardiovascular disease risk, palm oil gained prominence for good reason. Unlike partially hydrogenated vegetable oils that were historically used in processed foods, palm oil is naturally semi-solid and does not require hydrogenation (a process that creates harmful trans fats) — the reason why it has been widely adopted as a replacement for trans-fat-rich shortenings and vanaspati products.
Modern scientific research on and analysis of palm oil’s effects on blood cholesterol and cardiovascular health also present a mixed, and not outright negative, picture. Palm oil leads to modest rises in both good and bad cholesterol. Available evidence does not support classifying palm oil as uniquely harmful to heart health.
A question of diet and food choices
In practical terms, palm oil is neither a “superfood” nor “junk”. Like any cooking oil, its health effects depend on how much is consumed, how often, and the overall dietary pattern.
Many health risks commonly associated with palm oil arise from the ultra-processed foods in which it is often used — packaged snacks, confectionery, and fried foods. In such cases, excess sugar, salt, and calories may pose a greater health risk than the oil itself.
Current evidence also suggests that overall dietary patterns matter far more than the consumption of a single oil. Excess intake of saturated fats from any source — whether palm oil, butter, ghee, or coconut oil — can contribute to elevated levels of LDL (low-density lipoprotein) cholesterol (or bad cholesterol).
Therefore, the issue is not palm oil per se but excessive saturated fat intake within an already calorie-dense diet. There are several other relevant criteria on which palm oil needs to be evaluated, and these are often overlooked.
Edible oils are fundamental to human nutrition and one of the richest sources of essential fatty acids. The poorest in India consume around 21 grams (per capita) of edible oil in a day — below the recommended daily intake of 25–30 grams. This consumption gap contributes to nutritional insecurity.
Despite occupying just 5.5 percent of the world’s oil-cultivated land, palm oil contributes to over 35 percent of the global vegetable oil production. Its relatively high yield per hectare of land, against soybean, mustard and groundnut, makes it a cornerstone of an affordable edible oil economy. For India, where edible oil demand continues to rise with population growth and changing consumption patterns, palm oil remains indispensable. Affordability shapes nutritional choices for millions of low-income households in India.
The hidden costs of going palm oil-free
In the “No Palm” offensive, what often gets ignored is a simple fact. Palm oil is the world’s most land-efficient edible oil crop, producing four to six times more oil per hectare than major alternatives such as soybean, sunflower, and rapeseed.
Replacing palm oil with alternative vegetable oils would require 3.5 to 5.6 times more land to produce an equivalent volume of oil, increasing pressure on forests, grasslands, and other ecologically sensitive landscapes. Studies also show that substituting palm oil with soybean, rapeseed, or sunflower oil across major scenarios (25–100 percent replacement) could result in an additional 28.2 to 51.9 million hectares of global deforestation.
The ecological trade-off of such replacement is immense. Studies have shown that the biodiversity footprint1 for other edible oils is substantially larger than that of palm oil. There is clear evidence that producing the same amount of palm oil has a smaller impact on biodiversity and climate than producing other major edible oils, including groundnut, coconut, soybean, and rapeseed.
When viewed from a sustainability lens, the ‘No Palm Oil’ trend risks worsening environment outcomes. For India, importing an increased proportion of another edible oil effectively means importing more land, carbon, and species footprints from producer countries.
For consumers, the real choice is not between palm oil and no palm oil, but between informed and uninformed decisions. A pragmatic way forward would involve improving consumer awareness through clear and consistent front-of-pack nutrition labeling across all edible oils, enabling consumers to understand the composition of fats they consume rather than focusing on a single oil. Equally important is strengthening quality standards across the edible oil sector to ensure safe refining, storage, and processing practices while minimizing oxidation and nutrient losses.
In the debate over palm oil, nuance, not fear, should guide choices.
Shoba Suri is a nutritionist and public health expert, working as a Senior Fellow with the Health Initiative at the Observer Research Foundation (ORF) in New Delhi. Sumit Roy leads the Palm Oil programmes at Solidaridad Asia. Views are personal
https://indianexpress.com/article/opinion/columns/dont-fall-for-the-no-palm-oil-trend-health-nutrition-10789717/
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Oil palm-community conflict mapping in Indonesia: A case for better community liaison in planning for development initiatives
Conflict between large-scale oil-palm producers and local communities is widespread in palm-oil producing nations. With a potential doubling of oil-palm cultivation in Indonesia in the next ten years it is likely that conflicts between the palm-oil industry and communities will increase. We develop and apply a novel method for understanding spatial patterns of oil-palm related conflicts. We use a unique set of conflict data derived through systematic searches of online data sources and local newspaper reports describing recent oil-palm land-use related conflicts for Indonesian Borneo, and combine these data with 43 spatial environmental and social variables using boosted regression tree modeling. Reports identified 187 villages had reported conflict with oil-palm companies. Spatial patterns varied with different types of conflict. Forest-dependent communities were more likely to strongly oppose oil-palm establishment because of their negative perception of oil-palm development on the environment and their own livelihoods. Conflicts regarding land boundary disputes, illegal operations by companies, perceived lack of consultation, compensation and broken promises by companies were more associated with communities that have lower reliance on forests for livelihoods, or are located in regions that have undergone or are undergoing forest transformation to oil-palm or industrial-tree-plantations. A better understanding of the characteristics of communities and areas where different types of conflicts have occurred is a fundamental step in generating hypotheses about why certain types of conflict occur in certain locations. Insights from such research can help inform land use policy, planning and management to achieve more sustainable and equitable development. Our results can also assist certification bodies (eg the Roundtable for Sustainable Palm Oil-RSPO, and the Indonesian and Malaysian versions, ISPO and MSPO), non-government-organisations, government agencies and other stakeholders to more effectively target mediation efforts to reduce the potential for conflict arising in the future.
https://www.landscapealliance.org/es/conocimiento/publicacion/6306/
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Ready For Take-Off: SAF Opportunity For Indonesia And Malaysia
Jerome Hamilton (Head of Legal, ChemOne Group) and Jessica Xia (White & Case, Associate, Melbourne) contributed to the development of this publication.
Despite recent challenges facing the renewable energy and alternative fuels sectors, many individual countries, multilateral organizations and industry players remain committed to cutting carbon emissions from aviation in the medium to long term. In this context, sustainable aviation fuel (SAF) has emerged as a potential key tool – SAF can be produced from renewable feedstocks, and then blended with conventional fuel and 'dropped into' existing aviation fuelling systems. Depending on the feedstock and technological production pathway used, SAF's lifetime carbon intensity can be significantly lower than that of conventional jet fuel.
The SAF industry is still relatively nascent, and SAF is more costly than conventional jet fuel (even after the recent elevation in oil prices associated with hostilities in the Middle East), but as the pressure to decarbonise aviation continues to grow, demand for SAF is likely to rise. The global SAF industry was valued at USD$1.8 billion in 2024 and $2.3 billion in 2025, with a historical market growth rate of 52% annually from 2019 to 2024. While forecasts vary considerably, the value of the global SAF market is expected to exhibit an annual growth rate of between 40% and 65% over the next ten years to 2036.
Historically, the bulk of SAF production has been in North America and Europe. In 2025, North America alone accounted for 47.11% of the global SAF market's revenues. However, as the global SAF market grows in the coming years, Southeast Asia (in addition to China) may carve out substantial market share. In particular, Indonesia and Malaysia are well-positioned for success due to three key factors – the greater availability of feedstock, support from domestic government initiatives and demand driven by international requirements and frameworks. Notwithstanding these positive factors, to capitalise upon the opportunity before them, Indonesia and Malaysia will need to improve feedstock diversification and aggregation, strengthen supportive domestic regulations and policies and further align domestic SAF production with facilitative international frameworks.
Greater availability of SAF feedstock
SAF production and profitability are dependent on the cost and availability of relevant feedstocks. The most technologically mature pathway for SAF production, hydroprocessed esters and fatty acids (HEFA), is used for 80-90% of current global SAF output and relies on the processing of agricultural products, waste oils or fats. SAF producers often face considerable challenges in obtaining supply of these feedstocks in sufficient quantities. However, Indonesia and Malaysia, which account for 58% and 25% of global palm oil production, respectively, may have a competitive advantage in producing SAF based on the use of palm oil (including crude palm oil and palm kernel oil) as a feedstock in the HEFA process.
Nevertheless, palm oil is a controversial input, due to its longstanding association with environmental issues such as indirect land use change (ILUC). Consequently, key markets such as the European Union exclude palm oil-based SAF from counting towards regulatory SAF mandates and targets (see the ReFuelEU Aviation Regulations, read in conjunction with RED III), limiting associated demand. Policies that prevent or disincentivize export credit agencies (ECAs) and commercial lenders from supporting palm oil production (for example, CACIB's CSR Sector Policy and OECD member ECAs' adherence to the Common Approaches) further impact such SAF projects' bankability, although recent relaxation of certain environmental policies in the banking sector may increase the availability of financing. In addition, import restrictions such as those proposed under the EU Deforestation-Free Regulation (EUDR) could, upon their implementation, drastically reduce demand for palm oil-based SAF. Less clear under the foregoing regulations and policies is the treatment of SAF produced from palm oil mill effluent (POME), palm fatty acid distillate (PFAD) and other residues and wastes associated with palm oil production.
Although Indonesia currently relies heavily on palm oil for its SAF production, Indonesia's SAF Industry Development Roadmap, which sets out its proposed national SAF strategy over the next several decades to 2060, envisages a strong near-term focus on used cooking oil (UCO) as a feedstock. However, current aggregation systems in Indonesia are lightly regulated and largely decentralised, with aggregators of varying scale collecting UCO from both businesses and households. Only an estimated 23% of the UCO produced domestically is collected. This represents significant untapped potential, which could be unlocked with targeted investment in improving Indonesia's aggregation systems. While estimates vary, Indonesia likely produces 700,000-900,000 tonnes of 'practically and economically collectable' UCO per year. Aggregation of 715,000 tonnes of UCO per year would provide feedstock for the production of 187,000 kiloliters of SAF. Malaysia has similar challenges and potential, with an estimated collectable volume of 158,000 tonnes of UCO per year, and a somewhat higher (albeit still low) collection rate of 30-45%.
Aggregation aside, the availability of UCO as a SAF feedstock in both countries is also impacted by competing uses. In 2024, approximately 95% of Indonesia's collected UCO was exported to other countries. To increase feedstock availability domestically, the Indonesian government has more recently banned the export of both UCO and POME. Malaysia remains one of the world's largest UCO exporters, but has indicated that export restrictions could be implemented in the near future.
In addition to UCO, alternative options for feedstock diversification may exist in both countries to support SAF production. In particular, palm cultivation and palm oil processing produces certain residues and wastes (for example, POME and PFAD) that can also be used as SAF feedstock. Degraded land, previously used for palm oil production or otherwise, potentially could be used to plant certain energy crops without displacing other viable land uses. Both countries could, theoretically, also import SAF feedstocks to supplement domestic supply, although the economics of such arrangements may be challenging, feedstock exports generally are in high demand and domestic regulations may need to be clarified to facilitate such import (for example, any restrictions on the import of waste products into these countries).
Domestic government initiatives to support SAF
Both Indonesia and Malaysia are working towards stronger policy frameworks and clearer signalling of future governmental intent to create environments that are more conducive to investment in SAF production projects.
Government mandates for SAF usage (as implemented elsewhere, such as in the European Union and Singapore – see below) may be a critical lever to drive such investment by ensuring ongoing domestic demand. To this end, Indonesia's SAF Industry Development Roadmap proposes an incrementally increasing SAF blending requirement for all international flights departing from two of the country's major airports (which account for approximately 53% of Indonesia's international flight traffic). The proposal outlines plans to implement SAF blending requirements of 1% by 2027, 2.5% by 2030 and 50% by 2060. Similarly, Malaysia's Aviation Decarbonisation Blueprint envisions a 1% SAF blending mandate coming into effect in 2027 for all outbound international flights from Kuala Lumpur International Airport, followed by incremental increases in blending requirements culminating in 47% by 2050. However, neither of these proposals has fully crystallized into law, limiting investor certainty.
Both countries are also providing significant state support to accelerate the buildout of SAF production capacity. Indonesia aims to increase capacity to over 1.1 million kiloliters per year by 2030, largely through the activities of its national oil company, Pertamina. Indonesia's existing oil and gas infrastructure is proving to be another advantage in the SAF industry, as refineries, pipelines and other facilities may be modified to support SAF production. For example, Indonesia's sole operational SAF production plant is at Pertamina's refinery in Cilacap, which has been modified to allow production of 238,000 kiloliters of SAF annually (approximately 4,100 barrels per day). Further developments are underway – Indonesia's sovereign wealth fund, Danantara, is planning to boost the Cilacap refinery's production capacity to 6,000 barrels of SAF per day, and Pertamina is currently modifying its Dumai and Balongan refineries to process UCO into SAF as well.
Malaysia is targeting a similar increase in SAF production capacity. EcoCeres' 350,000 tonne SAF plant in Johor was successfully commissioned in October 2025, and PETRONAS, Malaysia's national oil company, is currently developing another 650,000 tonne SAF plant in Johor that is to commence operations by 2030 within the Pengerang Integrated Complex (PIC) (both plants are across the border from Singapore). Malaysia also provided early support to this PETRONAS project through an offtake agreement entered into in 2023, under which Malaysian Aviation Group (wholly owned by Malaysia's sovereign wealth fund) is to take delivery of over 230,000 tonnes of SAF beginning in 2027.
To increase investor confidence and promote further private sector investment in SAF production projects in Malaysia, the Malaysian government is also considering ways to facilitate permitting for SAF facilities' construction and SAF production and export. The SAF industry in both Indonesia and Malaysia is likely to benefit from such targeted domestic policy initiatives.
International requirements / frameworks bolstering SAF demand
Although palm-oil based SAF does not count towards regulatory SAF mandates and targets in the European Union and other markets, the implementation of mandatory SAF blending requirements, and the adoption of voluntary commitments by airlines and other companies, continue to drive demand for SAF production globally.
Both Indonesia and Malaysia enjoy close proximity to key SAF markets in Asia. Singapore has imposed a 1% blending requirement on all outbound flights by 2027. South Korea has proposed a similar mandate, and India is currently considering a similar but non-binding target. In Japan, no mandate has been announced, but recent signalling suggests that, by 2030, it may require fuel for all departing flights to consist of a 10% SAF blend, with such SAF to have at least 50% lower lifetime greenhouse gas emissions than conventional jet fuel. China is also expected to be a major SAF consumer, although it is possible that this demand will be primarily supplied by China's own domestic production.
In addition to national-level blending mandates, certain international regulatory frameworks are likely to continue driving global demand for SAF. In 2027, the International Civil Aviation Organisation (ICAO) is to mandate participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will require almost all ICAO member states (covering approximately 85% of the CO2 emitted by global international aviation) to reduce their carbon emissions using CORSIA eligible fuels (including certified types of SAF), or to purchase accredited carbon offsets. Significantly, under CORSIA, SAF produced from by-products, residues and wastes, which may include POME, PFAD and other residues and wastes associated with palm oil production, will, by default, be assigned no additional ILUC emissions. Therefore, more widespread participation in CORSIA may sharply increase demand for SAF produced from feedstocks that are in relatively higher supply in both Indonesia and Malaysia.
Both Indonesia and Malaysia have made some efforts to prepare for such increased participation in CORSIA. For example, in order for any given type of SAF to qualify as a CORSIA eligible fuel, it must be certified under an ICAO Council-approved Sustainability Certification Scheme, such as the International Sustainability & Carbon Certification (ISCC) CORSIA Certification. Pertamina's Cilacap refinery was the first in Southeast Asia to produce ISCC-certified SAF. Since then, PETRONAS has also locally produced ISCC-certified SAF, and delivered it to the Kuala Lumpur International Airport using an existing multi-product pipeline. Further efforts to align domestic SAF production with the standards required by CORSIA and other facilitative international frameworks are likely to benefit the SAF industry in both Indonesia and Malaysia.
Additionally, the 'book and claim' model of decoupling the environmental attributes of the relevant SAF from its physical molecules may allow SAF producers in Indonesia and Malaysia to access SAF markets worldwide without the need for costly logistics to deliver the SAF to foreign buyers. Although there is currently no globally adopted framework to support this model, programs have been launched by major aviation industry players to facilitate its use.
Bottom line
A combination of greater feedstock availability, domestic government initiatives intended to promote SAF production and international requirements and frameworks supporting SAF demand afford both Indonesia and Malaysia a significant opportunity to expand their respective SAF industries. Although both countries will need to continue to manage challenges such as feedstock diversification and aggregation, supportive domestic regulations and policies and alignment with facilitative international frameworks, Indonesia and Malaysia are well-positioned to become more prominent players in the SAF market both in Asia and globally.
https://www.jdsupra.com/legalnews/ready-for-take-off-saf-opportunity-for-5982051/
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Don’t fall for the ‘No Palm Oil’ trend. It’s not giving you the full health picture
The anti-palm narrative deserves closer scrutiny because at stake is the nutritional security of millions of Indians
By Shoba Suri and Sumit Roy
Visit any grocery store today, and you will see shelves of food items with labels mentioning “No Palm Oil”. Across India, several packaged food brands are introducing and advertising palm-free biscuits, breads, desserts, and snacks, influencing consumer preference for products perceived as cleaner and greener.
But, does removing palm oil really make food healthier or more environment-friendly? The answer is more complex than product packaging suggests. The No Palm trend deserves closer scrutiny, especially when most Indian households are seeking affordable, nutritious food.
The science behind the oil
In India, health concerns have amplified the anti-palm narrative. The controversy stems from the oil’s relatively high saturated fat content compared to some other oils. However, this framing conveys an incomplete picture. Palm oil consists of roughly 45 per cent fatty acids (primarily palmitic acid), with the rest composed of monounsaturated and polyunsaturated fats. On the fat scale, palm oil lies somewhere between highly saturated fats such as butter, ghee, and coconut oil, and more unsaturated oils such as sunflower, soybean, canola, and mustard.
With the global phase-out of industrial trans fats that are associated with increased cardiovascular disease risk, palm oil gained prominence for good reason. Unlike partially hydrogenated vegetable oils that were historically used in processed foods, palm oil is naturally semi-solid and does not require hydrogenation (a process that creates harmful trans fats) — the reason why it has been widely adopted as a replacement for trans-fat-rich shortenings and vanaspati products.
Modern scientific research on and analysis of palm oil’s effects on blood cholesterol and cardiovascular health also present a mixed, and not outright negative, picture. Palm oil leads to modest rises in both good and bad cholesterol. Available evidence does not support classifying palm oil as uniquely harmful to heart health.
A question of diet and food choices
In practical terms, palm oil is neither a “superfood” nor “junk”. Like any cooking oil, its health effects depend on how much is consumed, how often, and the overall dietary pattern.
Many health risks commonly associated with palm oil arise from the ultra-processed foods in which it is often used — packaged snacks, confectionery, and fried foods. In such cases, excess sugar, salt, and calories may pose a greater health risk than the oil itself.
Current evidence also suggests that overall dietary patterns matter far more than the consumption of a single oil. Excess intake of saturated fats from any source — whether palm oil, butter, ghee, or coconut oil — can contribute to elevated levels of LDL (low-density lipoprotein) cholesterol (or bad cholesterol).
Therefore, the issue is not palm oil per se but excessive saturated fat intake within an already calorie-dense diet. There are several other relevant criteria on which palm oil needs to be evaluated, and these are often overlooked.
Edible oils are fundamental to human nutrition and one of the richest sources of essential fatty acids. The poorest in India consume around 21 grams (per capita) of edible oil in a day — below the recommended daily intake of 25–30 grams. This consumption gap contributes to nutritional insecurity.
Despite occupying just 5.5 percent of the world’s oil-cultivated land, palm oil contributes to over 35 percent of the global vegetable oil production. Its relatively high yield per hectare of land, against soybean, mustard and groundnut, makes it a cornerstone of an affordable edible oil economy. For India, where edible oil demand continues to rise with population growth and changing consumption patterns, palm oil remains indispensable. Affordability shapes nutritional choices for millions of low-income households in India.
The hidden costs of going palm oil-free
In the “No Palm” offensive, what often gets ignored is a simple fact. Palm oil is the world’s most land-efficient edible oil crop, producing four to six times more oil per hectare than major alternatives such as soybean, sunflower, and rapeseed.
Replacing palm oil with alternative vegetable oils would require 3.5 to 5.6 times more land to produce an equivalent volume of oil, increasing pressure on forests, grasslands, and other ecologically sensitive landscapes. Studies also show that substituting palm oil with soybean, rapeseed, or sunflower oil across major scenarios (25–100 percent replacement) could result in an additional 28.2 to 51.9 million hectares of global deforestation.
The ecological trade-off of such replacement is immense. Studies have shown that the biodiversity footprint1 for other edible oils is substantially larger than that of palm oil. There is clear evidence that producing the same amount of palm oil has a smaller impact on biodiversity and climate than producing other major edible oils, including groundnut, coconut, soybean, and rapeseed.
When viewed from a sustainability lens, the ‘No Palm Oil’ trend risks worsening environment outcomes. For India, importing an increased proportion of another edible oil effectively means importing more land, carbon, and species footprints from producer countries.
For consumers, the real choice is not between palm oil and no palm oil, but between informed and uninformed decisions. A pragmatic way forward would involve improving consumer awareness through clear and consistent front-of-pack nutrition labeling across all edible oils, enabling consumers to understand the composition of fats they consume rather than focusing on a single oil. Equally important is strengthening quality standards across the edible oil sector to ensure safe refining, storage, and processing practices while minimizing oxidation and nutrient losses.
In the debate over palm oil, nuance, not fear, should guide choices.
Shoba Suri is a nutritionist and public health expert, working as a Senior Fellow with the Health Initiative at the Observer Research Foundation (ORF) in New Delhi. Sumit Roy leads the Palm Oil programmes at Solidaridad Asia. Views are personal
https://indianexpress.com/article/opinion/columns/dont-fall-for-the-no-palm-oil-trend-health-nutrition-10789717/
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Oil palm-community conflict mapping in Indonesia: A case for better community liaison in planning for development initiatives
Conflict between large-scale oil-palm producers and local communities is widespread in palm-oil producing nations. With a potential doubling of oil-palm cultivation in Indonesia in the next ten years it is likely that conflicts between the palm-oil industry and communities will increase. We develop and apply a novel method for understanding spatial patterns of oil-palm related conflicts. We use a unique set of conflict data derived through systematic searches of online data sources and local newspaper reports describing recent oil-palm land-use related conflicts for Indonesian Borneo, and combine these data with 43 spatial environmental and social variables using boosted regression tree modeling. Reports identified 187 villages had reported conflict with oil-palm companies. Spatial patterns varied with different types of conflict. Forest-dependent communities were more likely to strongly oppose oil-palm establishment because of their negative perception of oil-palm development on the environment and their own livelihoods. Conflicts regarding land boundary disputes, illegal operations by companies, perceived lack of consultation, compensation and broken promises by companies were more associated with communities that have lower reliance on forests for livelihoods, or are located in regions that have undergone or are undergoing forest transformation to oil-palm or industrial-tree-plantations. A better understanding of the characteristics of communities and areas where different types of conflicts have occurred is a fundamental step in generating hypotheses about why certain types of conflict occur in certain locations. Insights from such research can help inform land use policy, planning and management to achieve more sustainable and equitable development. Our results can also assist certification bodies (eg the Roundtable for Sustainable Palm Oil-RSPO, and the Indonesian and Malaysian versions, ISPO and MSPO), non-government-organisations, government agencies and other stakeholders to more effectively target mediation efforts to reduce the potential for conflict arising in the future.
https://www.landscapealliance.org/es/conocimiento/publicacion/6306/
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July 16, 2026
Indonesia Mulls Sanctions Against Companies Buying Palm Oil For Cheap
Jakarta. The Indonesian government has threatened strict sanctions against companies buying fresh fruit bunches for cheap from palm oil farmers.
According to Agriculture Minister Andi Amran Sulaiman, global palm oil prices had recently hit Rp 27,000 (around $1.49) per kilogram. However, prices among Indonesian farmers were only at Rp 14,000 per kilogram.
“A stronger dollar should have been a boon for palm oil, coffee, cocoa, and coconut farmers. But instead, prices [among farmers] dropped. What's going on?" Amran said.
He said that he has consulted with President Prabowo Subianto on this matter.
“If there are companies that don't raise [the purchase] prices and are hurting farmers, we'll shut them down, if necessary. This deals with the livelihoods of around 15 million palm oil farmers across the country," Amran said.
The government has tightened oversight of palm oil trade. Palm oil is one of Indonesia’s mainstay export commodities. It is also now subject to the country’s single-gate export system.
“The government will make sure that our farmers receive fair prices,” Amran said.
Indonesia is the world's largest palm oil supplier.
https://jakartaglobe.id/business/indonesia-mulls-sanctions-against-companies-buying-palm-oil-for-cheap
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Indonesia’s export centralisation policy likely to affect US buyers of palm oil
The Indonesian government’s export centralisation policy is most likely to affect US buyers of palm oil, according to a report by the US Department of Agriculture (USDA).
On 20 May, President Prabowo announced a “single-gate” export system for strategic commodities, citing various practices that had caused losses to the state for years.
In early June, the Indonesian government issued Ministry of Trade (MOT) Regulation 16/2026 designed to improve trade transparency and prevent revenue loss from exports, the 18 June Foreign Agriculture Service (FAS) report said.
The regulation listed the commodities which would need to be exported via DSI. This included palm oil products, including crude palm oil (CPO), refined palm oil, refined palm olein, used cooking oil (UCO) and palm residual products.
Managed by new state-owned entity Danantara Sumberdaya Indonesia (DSI), the new system would be introduced in phases, starting from 1 June, with full operation targeted by 1 January 2027.
Although exporters would continue conducting overseas sales independently during the transition period, companies would be required to report all export activities to DSI.
The government plans to review the policy after the first three months of implementation before proceeding to the next phase, according to the report.
In 2025, the USA was the fifth largest importer of Indonesian palm oil, the USDA said.
However, while Indonesian palm oil exports to the USA totalled 1.3M tonnes last year, this was the lowest volume since 2021.
Meanwhile, Indonesia recorded no UCO shipments to the USA in 2026 despite exporting 10,000-112,000 tonnes/year to the USA from 2023-2025.
There have been no palm residue exports from Indonesia to the USA since 2023, according to the USDA report.
The USDA said it would continue to track the impact of Indonesia’s policy change.
As the world’s leading palm oil producer, Indonesia accounts for more than half of global shipments of the commodity.
https://www.ofimagazine.com/news/indonesias-export-centralisation-policy-likely-to-affect-us-buyers-of-palm-oil
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B50 rollout requires more CPO output to fill demand, industry warns
JAKARTA: Indonesian plantation players say they can supply the additional crude palm oil (CPO) needed this year under the government’s latest biodiesel mandate but warn sustaining the policy will require significantly higher production in the years ahead.
The July 1 mandatory increase in palm-based biodiesel to a 50% blend from 40% is expected to lift domestic CPO consumption for biodiesel to between 16.3 million tonnes and 17 million tonnes annually.
Producers expect national CPO output of around 53 million tonnes in 2026, which should leave enough supply to fulfill the higher domestic demand for fuel.
“This year should be safe, because the additional 1.74 million tonnes needed for B50 can still be met from current production capacity,” Indonesian Palm Oil Association chairman Eddy Martono told The Jakarta Post last Friday.
https://www.thestar.com.my/business/business-news/2026/07/15/b50-rollout-requires-more-cpo-output-to-fill-demand-industry-warns#goog_rewarded
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Indonesia Needs 23.3 Million Tons of CPO Annually for B50 Program
Jakarta. Indonesia's nationwide B50 biodiesel mandate will require 23.3 million metric tons of crude palm oil (CPO) each year, an increase of 8.5 million tons from the previous B40 program, according to the Agriculture Ministry.
The B50 policy, which took effect this month, requires diesel fuel to contain 50% palm oil-based biodiesel, up from 40% previously.
“With B50 now in force, Indonesia no longer needs to import diesel because the fuel now consists of 50% domestically produced fossil diesel and 50% biodiesel made from Indonesian palm oil. We only need an additional 8.5 million tons of CPO to move from B40 to B50,” Deputy Agriculture Minister Sudaryono said earlier this week.
To meet the higher demand, the government estimates Indonesia will need about 5 million additional hectares of oil palm plantations capable of producing around 20 million tons of CPO annually, with the potential to generate 11.5 million tons of exports.
Part of the expansion could come from land recently transferred to state-owned plantation company Agrinas Palma Nusantara. The company has taken control of 4.11 million hectares of land confiscated by the government's Forest Area Enforcement Task Force from illegal plantation and mining operations on state-owned land.
About 730,000 hectares of the confiscated land have already been verified as oil palm plantations.
Sudaryono said the Agriculture Ministry, which is responsible for ensuring sufficient CPO supplies for the B50 program, is evaluating the land as part of broader efforts to increase palm oil production.
“Our task is to raise palm oil productivity per hectare while identifying available land suitable for new plantations, including oil palm areas transferred by the Forest Area Enforcement Task Force,” he said.
The biodiesel subsidy program is expected to cost Rp 32.3 trillion ($1.8 billion) this year. It will be financed by the Oil Palm Plantation Fund Management Agency (BPDP) through levies collected on palm oil exports.
https://jakartaglobe.id/business/indonesia-needs-233-million-tons-of-cpo-annually-for-b50-program
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B50 biofuel calls for national logistics overhaul
Jakarta (ANTARA) - The B50 biodiesel implementation has marked a new chapter in Indonesia's journey toward energy sovereignty.
After years of relying on imported fossil fuels, Indonesia is now increasingly confident in utilizing its domestic resources to meet its energy needs.
This move not only reflects the country's commitment to a more sustainable energy transition, but also serves as an important strategy to ease pressure on the trade balance, strengthen energy security, and increase the added value of domestic palm oil commodities.
However, the B50 program's success brings complex new challenges. The growing demand for palm oil as a biodiesel feedstock will shift the country's trade patterns, transitioning from export-oriented markets to meeting domestic energy needs.
Public debate should no longer focus solely on whether Indonesia can produce larger volumes of biodiesel.
A far more strategic question is whether the country's logistics ecosystem is ready to ensure that raw materials can be transported efficiently from plantation areas to processing industries without disrupting supplies for the food sector and other industries.
Without these improvements, expanding biodiesel's share in the national energy mix could trigger new economic burdens that will ultimately be passed on to the public.
Therefore, success should no longer be measured solely by the percentage of biodiesel blended into fuel or the amount of foreign exchange saved from lower fuel imports.
A more vital benchmark is Indonesia's ability to develop a logistics system and agribusiness governance that balances energy needs, food security, and national economic competitiveness.
This is where a new direction for development should begin by making logistics the primary foundation for achieving sustainable energy sovereignty.
Logistics as key to energy sovereignty
In the context of the B50 program, palm oil is no longer viewed solely as an export commodity. Instead, it has become a strategic feedstock that must be sustainably available for the national energy industry.
This shift requires a new perspective on logistics. Previously, crude palm oil (CPO) distribution was primarily directed to export ports.
Today, however, supply chains must also reach biodiesel refineries, storage terminals, and energy consumption centers across Indonesia.
Indonesia's archipelagic geography complicates the situation. While most palm oil plantations are in Sumatra, Kalimantan, and Sulawesi, energy demand remains spread across almost every province nationwide.
Without an integrated transport network, adequate storage, and strong coordination, logistics costs will rise.
The experience of several countries shows that energy transition always goes hand in hand with logistics improvements.
Brazil has successfully pioneered sugarcane-based bioethanol by building an integrated ecosystem that connects plantations, processing plants, distribution networks, and fuel stations.
The United States offers a similar model through its corn-based bioethanol development. Investments in railway networks, storage terminals, and distribution systems have enabled the country to distribute biofuel supplies efficiently nationwide.
Indonesia, as the world's largest producer of palm oil, has abundant feedstock supplies and decades of experience in managing the palm oil industry.
The next challenge is to transform this production advantage into a system advantage by developing biodiesel industry clusters closer to plantation areas, modernizing ports and storage facilities, and digitalizing supply chains, among others.
Such an approach would not only improve distribution efficiency but also create new centers of economic growth in palm oil-producing regions.
Balancing energy and food
Expanding palm oil use for biodiesel regularly sparks concerns over cooking oil supplies and rising food prices.
The primary challenge does not stem from the B50 program itself, but from Indonesia's capacity to boost the productivity and efficiency of its domestic palm oil industry.
Improving land productivity and managing supply chains efficiently will allow Indonesia to meet both energy and food needs simultaneously without sacrificing either sector.
However, data show many local plantations still rely on aging trees, low-quality seedlings, and inefficient cultivation practices.
Some strategic solutions include accelerating replanting programs, distributing high-quality seeds, adopting precision agriculture, and providing stronger support for local farmers.
In addition to improving productivity, Indonesia also needs to accelerate its transition toward second-generation biofuels.
Biodiesel currently relies heavily on palm oil, which also carries high economic value as a food commodity.
However, the industry produces various biomass residues and waste. Through technological advances, empty fruit bunches, fronds, fiber, and palm oil mill effluent can all be converted into energy.
As productivity improves and logistics become more efficient, the energy versus food security dilemma will disappear. Instead, both sectors can serve as twin pillars supporting Indonesia's economic sovereignty.
Indonesia's major agenda
Amid global energy market uncertainty, Indonesia can prove that energy sovereignty does not require sacrificing food security. Both can thrive together through integrated governance, technological innovation, and bold policy reforms.
Ultimately, after B50, Indonesia's biggest task is no longer merely producing more biodiesel, but restructuring the national logistics system so that every link in the chain is connected.
This is where energy sovereignty finds its true meaning, not only in meeting today's needs, but also in ensuring that energy, food, and national prosperity can be passed on to future generations.
*) Aries Heru Prasetyo, Lecturer at PPM School of Management
https://en.antaranews.com/amp/news/422829/b50-biofuel-calls-for-national-logistics-overhaul
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Seda highlights biomass, RE opportunity in palm oil sector
KUALA LUMPUR: The Sustainable Energy Development Authority (Seda) has identified 51.88 megawatts of potential power generation capacity from palm oil mills that can likely be developed in Peninsular Malaysia.
Deputy Energy Transition and Water Transformation Minister Datuk Seri Abdul Rahman Mohamad said the ministry, through the Programme Office for Power Electricity Reform Corp, is conducting a comprehensive and phased assessment of the potential development of a nuclear energy programme for long-term electricity generation in Malaysia.
“The government wishes to stress that any decision on the construction of a nuclear power plant will only be considered after all related prerequisites have been met and assessments show that the technology is safe, viable, sustainable and beneficial to the country,” he said in the Dewan Rakyat yesterday.
He was responding to a question from Rodziah Ismail (PH-Ampang) on the findings of studies into the potential of alternative low-carbon energy sources, including nuclear, biomass, biogas and geothermal, to complement existing renewable energy sources such as solar and hydropower.
https://www.thestar.com.my/business/business-news/2026/07/16/seda-highlights-biomass-re-opportunity-in-palm-oil-sector
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Nigeria launches $500 million farm fund to drive food security
ABUJA, July 15 (Reuters) - Nigeria has launched a $500 million agriculture investment fund for the oil-producing Niger Delta region, seeking to raise food output, attract private investment and strengthen food security, Vice President Kashim Shettima said on Wednesday.
Speaking at an investment summit for the region in Abuja, Shettima said the fund would invest in areas including aquaculture, palm oil, and marine resources, leveraging financing from multilateral lenders and private investors.
Indonesia Mulls Sanctions Against Companies Buying Palm Oil For Cheap
Jakarta. The Indonesian government has threatened strict sanctions against companies buying fresh fruit bunches for cheap from palm oil farmers.
According to Agriculture Minister Andi Amran Sulaiman, global palm oil prices had recently hit Rp 27,000 (around $1.49) per kilogram. However, prices among Indonesian farmers were only at Rp 14,000 per kilogram.
“A stronger dollar should have been a boon for palm oil, coffee, cocoa, and coconut farmers. But instead, prices [among farmers] dropped. What's going on?" Amran said.
He said that he has consulted with President Prabowo Subianto on this matter.
“If there are companies that don't raise [the purchase] prices and are hurting farmers, we'll shut them down, if necessary. This deals with the livelihoods of around 15 million palm oil farmers across the country," Amran said.
The government has tightened oversight of palm oil trade. Palm oil is one of Indonesia’s mainstay export commodities. It is also now subject to the country’s single-gate export system.
“The government will make sure that our farmers receive fair prices,” Amran said.
Indonesia is the world's largest palm oil supplier.
https://jakartaglobe.id/business/indonesia-mulls-sanctions-against-companies-buying-palm-oil-for-cheap
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Indonesia’s export centralisation policy likely to affect US buyers of palm oil
The Indonesian government’s export centralisation policy is most likely to affect US buyers of palm oil, according to a report by the US Department of Agriculture (USDA).
On 20 May, President Prabowo announced a “single-gate” export system for strategic commodities, citing various practices that had caused losses to the state for years.
In early June, the Indonesian government issued Ministry of Trade (MOT) Regulation 16/2026 designed to improve trade transparency and prevent revenue loss from exports, the 18 June Foreign Agriculture Service (FAS) report said.
The regulation listed the commodities which would need to be exported via DSI. This included palm oil products, including crude palm oil (CPO), refined palm oil, refined palm olein, used cooking oil (UCO) and palm residual products.
Managed by new state-owned entity Danantara Sumberdaya Indonesia (DSI), the new system would be introduced in phases, starting from 1 June, with full operation targeted by 1 January 2027.
Although exporters would continue conducting overseas sales independently during the transition period, companies would be required to report all export activities to DSI.
The government plans to review the policy after the first three months of implementation before proceeding to the next phase, according to the report.
In 2025, the USA was the fifth largest importer of Indonesian palm oil, the USDA said.
However, while Indonesian palm oil exports to the USA totalled 1.3M tonnes last year, this was the lowest volume since 2021.
Meanwhile, Indonesia recorded no UCO shipments to the USA in 2026 despite exporting 10,000-112,000 tonnes/year to the USA from 2023-2025.
There have been no palm residue exports from Indonesia to the USA since 2023, according to the USDA report.
The USDA said it would continue to track the impact of Indonesia’s policy change.
As the world’s leading palm oil producer, Indonesia accounts for more than half of global shipments of the commodity.
https://www.ofimagazine.com/news/indonesias-export-centralisation-policy-likely-to-affect-us-buyers-of-palm-oil
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B50 rollout requires more CPO output to fill demand, industry warns
JAKARTA: Indonesian plantation players say they can supply the additional crude palm oil (CPO) needed this year under the government’s latest biodiesel mandate but warn sustaining the policy will require significantly higher production in the years ahead.
The July 1 mandatory increase in palm-based biodiesel to a 50% blend from 40% is expected to lift domestic CPO consumption for biodiesel to between 16.3 million tonnes and 17 million tonnes annually.
Producers expect national CPO output of around 53 million tonnes in 2026, which should leave enough supply to fulfill the higher domestic demand for fuel.
“This year should be safe, because the additional 1.74 million tonnes needed for B50 can still be met from current production capacity,” Indonesian Palm Oil Association chairman Eddy Martono told The Jakarta Post last Friday.
https://www.thestar.com.my/business/business-news/2026/07/15/b50-rollout-requires-more-cpo-output-to-fill-demand-industry-warns#goog_rewarded
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Indonesia Needs 23.3 Million Tons of CPO Annually for B50 Program
Jakarta. Indonesia's nationwide B50 biodiesel mandate will require 23.3 million metric tons of crude palm oil (CPO) each year, an increase of 8.5 million tons from the previous B40 program, according to the Agriculture Ministry.
The B50 policy, which took effect this month, requires diesel fuel to contain 50% palm oil-based biodiesel, up from 40% previously.
“With B50 now in force, Indonesia no longer needs to import diesel because the fuel now consists of 50% domestically produced fossil diesel and 50% biodiesel made from Indonesian palm oil. We only need an additional 8.5 million tons of CPO to move from B40 to B50,” Deputy Agriculture Minister Sudaryono said earlier this week.
To meet the higher demand, the government estimates Indonesia will need about 5 million additional hectares of oil palm plantations capable of producing around 20 million tons of CPO annually, with the potential to generate 11.5 million tons of exports.
Part of the expansion could come from land recently transferred to state-owned plantation company Agrinas Palma Nusantara. The company has taken control of 4.11 million hectares of land confiscated by the government's Forest Area Enforcement Task Force from illegal plantation and mining operations on state-owned land.
About 730,000 hectares of the confiscated land have already been verified as oil palm plantations.
Sudaryono said the Agriculture Ministry, which is responsible for ensuring sufficient CPO supplies for the B50 program, is evaluating the land as part of broader efforts to increase palm oil production.
“Our task is to raise palm oil productivity per hectare while identifying available land suitable for new plantations, including oil palm areas transferred by the Forest Area Enforcement Task Force,” he said.
The biodiesel subsidy program is expected to cost Rp 32.3 trillion ($1.8 billion) this year. It will be financed by the Oil Palm Plantation Fund Management Agency (BPDP) through levies collected on palm oil exports.
https://jakartaglobe.id/business/indonesia-needs-233-million-tons-of-cpo-annually-for-b50-program
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B50 biofuel calls for national logistics overhaul
Jakarta (ANTARA) - The B50 biodiesel implementation has marked a new chapter in Indonesia's journey toward energy sovereignty.
After years of relying on imported fossil fuels, Indonesia is now increasingly confident in utilizing its domestic resources to meet its energy needs.
This move not only reflects the country's commitment to a more sustainable energy transition, but also serves as an important strategy to ease pressure on the trade balance, strengthen energy security, and increase the added value of domestic palm oil commodities.
However, the B50 program's success brings complex new challenges. The growing demand for palm oil as a biodiesel feedstock will shift the country's trade patterns, transitioning from export-oriented markets to meeting domestic energy needs.
Public debate should no longer focus solely on whether Indonesia can produce larger volumes of biodiesel.
A far more strategic question is whether the country's logistics ecosystem is ready to ensure that raw materials can be transported efficiently from plantation areas to processing industries without disrupting supplies for the food sector and other industries.
Without these improvements, expanding biodiesel's share in the national energy mix could trigger new economic burdens that will ultimately be passed on to the public.
Therefore, success should no longer be measured solely by the percentage of biodiesel blended into fuel or the amount of foreign exchange saved from lower fuel imports.
A more vital benchmark is Indonesia's ability to develop a logistics system and agribusiness governance that balances energy needs, food security, and national economic competitiveness.
This is where a new direction for development should begin by making logistics the primary foundation for achieving sustainable energy sovereignty.
Logistics as key to energy sovereignty
In the context of the B50 program, palm oil is no longer viewed solely as an export commodity. Instead, it has become a strategic feedstock that must be sustainably available for the national energy industry.
This shift requires a new perspective on logistics. Previously, crude palm oil (CPO) distribution was primarily directed to export ports.
Today, however, supply chains must also reach biodiesel refineries, storage terminals, and energy consumption centers across Indonesia.
Indonesia's archipelagic geography complicates the situation. While most palm oil plantations are in Sumatra, Kalimantan, and Sulawesi, energy demand remains spread across almost every province nationwide.
Without an integrated transport network, adequate storage, and strong coordination, logistics costs will rise.
The experience of several countries shows that energy transition always goes hand in hand with logistics improvements.
Brazil has successfully pioneered sugarcane-based bioethanol by building an integrated ecosystem that connects plantations, processing plants, distribution networks, and fuel stations.
The United States offers a similar model through its corn-based bioethanol development. Investments in railway networks, storage terminals, and distribution systems have enabled the country to distribute biofuel supplies efficiently nationwide.
Indonesia, as the world's largest producer of palm oil, has abundant feedstock supplies and decades of experience in managing the palm oil industry.
The next challenge is to transform this production advantage into a system advantage by developing biodiesel industry clusters closer to plantation areas, modernizing ports and storage facilities, and digitalizing supply chains, among others.
Such an approach would not only improve distribution efficiency but also create new centers of economic growth in palm oil-producing regions.
Balancing energy and food
Expanding palm oil use for biodiesel regularly sparks concerns over cooking oil supplies and rising food prices.
The primary challenge does not stem from the B50 program itself, but from Indonesia's capacity to boost the productivity and efficiency of its domestic palm oil industry.
Improving land productivity and managing supply chains efficiently will allow Indonesia to meet both energy and food needs simultaneously without sacrificing either sector.
However, data show many local plantations still rely on aging trees, low-quality seedlings, and inefficient cultivation practices.
Some strategic solutions include accelerating replanting programs, distributing high-quality seeds, adopting precision agriculture, and providing stronger support for local farmers.
In addition to improving productivity, Indonesia also needs to accelerate its transition toward second-generation biofuels.
Biodiesel currently relies heavily on palm oil, which also carries high economic value as a food commodity.
However, the industry produces various biomass residues and waste. Through technological advances, empty fruit bunches, fronds, fiber, and palm oil mill effluent can all be converted into energy.
As productivity improves and logistics become more efficient, the energy versus food security dilemma will disappear. Instead, both sectors can serve as twin pillars supporting Indonesia's economic sovereignty.
Indonesia's major agenda
Amid global energy market uncertainty, Indonesia can prove that energy sovereignty does not require sacrificing food security. Both can thrive together through integrated governance, technological innovation, and bold policy reforms.
Ultimately, after B50, Indonesia's biggest task is no longer merely producing more biodiesel, but restructuring the national logistics system so that every link in the chain is connected.
This is where energy sovereignty finds its true meaning, not only in meeting today's needs, but also in ensuring that energy, food, and national prosperity can be passed on to future generations.
*) Aries Heru Prasetyo, Lecturer at PPM School of Management
https://en.antaranews.com/amp/news/422829/b50-biofuel-calls-for-national-logistics-overhaul
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Seda highlights biomass, RE opportunity in palm oil sector
KUALA LUMPUR: The Sustainable Energy Development Authority (Seda) has identified 51.88 megawatts of potential power generation capacity from palm oil mills that can likely be developed in Peninsular Malaysia.
Deputy Energy Transition and Water Transformation Minister Datuk Seri Abdul Rahman Mohamad said the ministry, through the Programme Office for Power Electricity Reform Corp, is conducting a comprehensive and phased assessment of the potential development of a nuclear energy programme for long-term electricity generation in Malaysia.
“The government wishes to stress that any decision on the construction of a nuclear power plant will only be considered after all related prerequisites have been met and assessments show that the technology is safe, viable, sustainable and beneficial to the country,” he said in the Dewan Rakyat yesterday.
He was responding to a question from Rodziah Ismail (PH-Ampang) on the findings of studies into the potential of alternative low-carbon energy sources, including nuclear, biomass, biogas and geothermal, to complement existing renewable energy sources such as solar and hydropower.
https://www.thestar.com.my/business/business-news/2026/07/16/seda-highlights-biomass-re-opportunity-in-palm-oil-sector
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Nigeria launches $500 million farm fund to drive food security
ABUJA, July 15 (Reuters) - Nigeria has launched a $500 million agriculture investment fund for the oil-producing Niger Delta region, seeking to raise food output, attract private investment and strengthen food security, Vice President Kashim Shettima said on Wednesday.
Speaking at an investment summit for the region in Abuja, Shettima said the fund would invest in areas including aquaculture, palm oil, and marine resources, leveraging financing from multilateral lenders and private investors.
- The fund will operate as a commercial, returns-driven investment vehicle spanning crops, livestock, fisheries and marine resources.
- Shettima did not disclose the fund's financing structure, but said it would pool commitments from the World Bank, African Development Bank, Islamic Development Bank and private investors.
- The fund aligns with Nigeria's food security drive, which includes plans to deploy 10,000 tractors over five years and expand farm mechanisation.
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July 14, 2026
EU adopts final list of products covered by deforestation rules
Documents confirm leather's exclusion from the legislation
Sofia Sanchez Manzanaro
The final list of products covered under the EU’s deforestation regulation excludes leather, as well as carving out palm oil-derived products used for medicines and soybean seeds.
The final regulation and annex are virtually identical to the versions obtained by Euractiv on 29 June, which confirmed the exclusion of leather.
Since finished leather products, such as shoes and bags, are not covered by the legislation, the European Commission justifies the exclusion by arguing that keeping leather within scope could risk relocating deforestation to other countries where manufacturing takes place.
The move has been slammed by German socialist MEP Delara Burkhardt, one of the lead lawmakers on the file in European Parliament, who said on Monday that there is no “scientific or technical justification” for its exclusion.
“Beef from cattle raised on deforested land would no longer be allowed on the EU market, while the hide of that same animal could still enter the EU as leather,” she added.
The rules also exclude several products, including soybean seeds, palm oil-derived products used for human and veterinary medicines, and palm oil waste that can be used as biofuel feedstock.
New inclusions, as previously reported, include soluble coffee, palm oil-based soap and a range of oleochemicals. The new product categories will only apply from December 2027.
The delegated act can still be challenged by the European Parliament or the Council over the next two months.
The European Commission has also published new secondary legislation introducing tweaks to the EUDR’s information system, the platform through which companies must upload the geolocation data demonstrating that products were not produced on deforested land.
The changes simplify the procedure for smallholder farmers and foresters selling directly on the EU market without intermediaries. The IT platform returned online in June after months of technical updates.
Last year’s delay in the EUDR’s implementation was justified by the Commission on the grounds that the platform might not have been able to handle the necessary data volumes.
Despite the exclusions from its scope, Béatrice Wedeux, senior policy officer for forests at WWF, said the measures marked the end of the “legal and political uncertainty”.
“With clarity on the product scope and the IT system in place, there are no remaining excuses for delay: companies and Member States now have all the tools they need to move decisively towards full implementation,” she added.
https://www.euractiv.com/news/eu-adopts-final-list-of-products-covered-by-deforestation-rules/
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Missing the wood for the trees – the EU’s unloved deforestation law reaches endgame
If there ever was a law that started off popular but entered into force with hardly a supporter left in sight it is the EU’s deforestation regulation. On Monday, the EU Commission published its final – finally final – piece of law that will implement the EUDR.
Covering the passage of EUDR – from being lauded by lawmakers as a beacon of sustainable business law back in 2023, to the years of dithering, delay and dilution of its rules that have followed – has been painful enough. Imagine how it must have been for those with skin in the game.
The delegated act adopted by the EU executive on Monday (13 July) confirms an announcement made in May, when the commission added instant coffee and palm oil derivatives to the list of products covered, but removed leather. That, say civil society groups, who argue that there is a clear link between the leather industry and deforestation will create loopholes and foster unfair competition between sectors in the EU.
Yet civil society leaders were trying to stay magnanimous on Monday.
“Despite continued efforts to weaken the EU Deforestation Regulation, this decision should mark the end of legal and political uncertainty around the EUDR”, said WWF’s Béatrice Wedeux.
“With clarity on the product scope and the IT system in place, there are no remaining excuses for delay: companies and member states now have all the tools they need to move decisively towards full implementation,” she added.
There is now no escaping EUDR, which requires businesses trading cocoa, coffee, timber, palm oil and rubber to ensure that their products were not linked to deforestation anywhere in their supply chain.
Andrew Puzder, Washington’s ambassador to the EU, has described the EUDR as “selective protectionism” after the EU declined to exempt US companies from its provisions. He says that the dilution of the original EUDR has exempted small EU-based firms from the due diligence requirements that have been landed on the US and other foreign businesses. On that, at least, he has a point.
But the EUDR must be doing something right because it is spawning imitation – and they say imitation is the sincerest form of flattery.
UK joins the party
The UK announced last month that it would introduce its own anti-deforestation law modelled on EUDR, much to the chagrin of the Trump administration which has warned of “strong concerns” about the UK doing a copy-and-paste of the EU rules.
That could be a sign of the UK’s keenness to get ever closer to the EU single market. Even so, it is a sign that EUDR and more stringent due diligence requirements on companies are here to stay.
In all of the delays and efforts to water down the EUDR – the due diligence requirements have been stripped down by around 75 percent after the EU Commission realised that the paperwork being submitted would cause the collapse of the EU’s IT system – it has been easy to lose sight of the purpose of the law.
And in the meantime, every one-year postponement of the EUDR has, say green NGOs, caused the loss of nearly 50 million trees and the release of 16.8 million tonnes of CO₂ into the atmosphere.
The regulation’s aim is to require sellers of beef, coffee, chocolate, palm oil and wood to show their goods can be traced to land that has not been deforested.
It is said that the road to hell is paved with good intentions. Only time and implementation will show whether the saying applies to the EUDR.
https://euobserver.com/227360/missing-the-wood-for-the-trees-the-eus-unloved-deforestation-law-reaches-endgame/
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US MAHA war on seed oils could benefit Asian palm and coconut oil
Even without an outright ban, the Robert F. Kennedy Jr.-led Make America Healthy Again campaign is affecting consumer behavior
Thanks to Robert F. Kennedy Jr. and his Make America Healthy Again tribe, seed oils have been getting a lot of unwanted attention. The MAHA types despise them.
Despise is not too strong a word. Cate Shanahan, a central MAHA figure known as “the mother of the seed oil movement,” calls them the Hateful Eight oils. That formulation expresses MAHA’s sentiments while avoiding the sticky fact that two of the eight — corn and rice bran — aren’t actually seed oils, as they aren’t extracted from seeds. The others are canola, cottonseed, grape seed, safflower, soybean and sunflower.
Whatever they’re called, the MAHA campaign against them is affecting consumer behavior. In an International Food Information Council survey, 28% of Americans said they avoid seed oils.
If you grow one or more of these eight crops, should you be concerned?
MAHA types believe that the refining of these eight oils leaves those who consume them with dangerous inflammatory toxins in their systems. MAHA has problems with several refining practices – the high heat, the bleaching and the use of chemical solvents like hexane.
Having rejected seed oils, the MAHA crowd embraces something the medical establishment considers dangerous: saturated fats. In releasing the government’s latest dietary guidelines, which promote cooking with butter and beef tallow, Health and Human Services Secretary Robert F. Kennedy Jr. declared he was “ending the war on saturated fats.”
Medical establishment organizations like the American Heart Association say seed oils are safe and beneficial. The inflammation argument is flawed, AHA says, adding that these oils are far better for heart health than butter and beef tallow. The headline on a 2024 AHA press release read, “There’s no reason to avoid seed oils and plenty of reasons to eat them.”
In this era of widespread public distrust of the “establishment,” the MAHA view is gaining the upper hand.
Farm groups are worried. In Senate testimony in February, former American Soybean Association president Josh Gackle decried “false claims” about soybean and other seed oils and threats to ban them. “Soybean oil consumption for edible uses is a stable market that has provided continued certainty for our farmers,” he said, “and removing that market would cause an immediate and significant decline in soybean oil prices.”
A 2025 seed oil study funded by the United Soybean Board concluded that a seed oil ban would raise food prices and lower farm incomes.
The big winner of a ban, the study said, would be imported palm oil.
If a ban would lower farm incomes, what effect has the 28% of the public avoiding seed oils had? Presumably there’s been some impact; if 100% of the public were using seed oils, demand would be higher, a plus for crop prices.
Still, there are reasons to think that for some crops, at least, the impact of consumer seed oil avoidance has been relatively small. Only a small percentage of US-grown corn goes to food oil. For soybeans, a big chunk of the oil produced has been diverted for use as biofuels. Restaurants continue to use seed oils because they’re economical.
Moreover, we don’t have any context for the 28% figure. What was the percentage five years ago? Ten? Was there ever a time when the number was zero? The avoidance may be built into crop price levels. Unless it’s increasing rapidly, it may not be driving prices down much.
Mainstream science and MAHA agree on one thing: Olive oil is good. It’s made by simply pressing olives rather than using heat and chemicals, which clears it with MAHA. Both the MAHA-influenced new government guidelines and establishment organizations like the American Heart Association recommend it.
But extra virgin olive oil isn’t likely to be the only cooking oil on pantry shelves. The taste of it doesn’t work with some foods. It has a low smoke point, so some cooks prefer seed oils for cooking at very high temperatures. And it’s more expensive.
Still, seed oils are fighting an uphill battle in the court of public opinion. The product description on the package of LesserEvil popcorn boasts of not using “sneaky vegetable oils.” LesserEvil uses coconut oil, which is particularly high in saturated fats. The LesserEvil brand is showing up on more and more store shelves.
Growers have to wonder: Could 28% today be 50% tomorrow?
https://asiatimes.com/2026/07/us-maha-war-on-seed-oils-could-benefit-asian-palm-and-coconut-oil/
EU adopts final list of products covered by deforestation rules
Documents confirm leather's exclusion from the legislation
Sofia Sanchez Manzanaro
The final list of products covered under the EU’s deforestation regulation excludes leather, as well as carving out palm oil-derived products used for medicines and soybean seeds.
The final regulation and annex are virtually identical to the versions obtained by Euractiv on 29 June, which confirmed the exclusion of leather.
Since finished leather products, such as shoes and bags, are not covered by the legislation, the European Commission justifies the exclusion by arguing that keeping leather within scope could risk relocating deforestation to other countries where manufacturing takes place.
The move has been slammed by German socialist MEP Delara Burkhardt, one of the lead lawmakers on the file in European Parliament, who said on Monday that there is no “scientific or technical justification” for its exclusion.
“Beef from cattle raised on deforested land would no longer be allowed on the EU market, while the hide of that same animal could still enter the EU as leather,” she added.
The rules also exclude several products, including soybean seeds, palm oil-derived products used for human and veterinary medicines, and palm oil waste that can be used as biofuel feedstock.
New inclusions, as previously reported, include soluble coffee, palm oil-based soap and a range of oleochemicals. The new product categories will only apply from December 2027.
The delegated act can still be challenged by the European Parliament or the Council over the next two months.
The European Commission has also published new secondary legislation introducing tweaks to the EUDR’s information system, the platform through which companies must upload the geolocation data demonstrating that products were not produced on deforested land.
The changes simplify the procedure for smallholder farmers and foresters selling directly on the EU market without intermediaries. The IT platform returned online in June after months of technical updates.
Last year’s delay in the EUDR’s implementation was justified by the Commission on the grounds that the platform might not have been able to handle the necessary data volumes.
Despite the exclusions from its scope, Béatrice Wedeux, senior policy officer for forests at WWF, said the measures marked the end of the “legal and political uncertainty”.
“With clarity on the product scope and the IT system in place, there are no remaining excuses for delay: companies and Member States now have all the tools they need to move decisively towards full implementation,” she added.
https://www.euractiv.com/news/eu-adopts-final-list-of-products-covered-by-deforestation-rules/
---------
Missing the wood for the trees – the EU’s unloved deforestation law reaches endgame
If there ever was a law that started off popular but entered into force with hardly a supporter left in sight it is the EU’s deforestation regulation. On Monday, the EU Commission published its final – finally final – piece of law that will implement the EUDR.
Covering the passage of EUDR – from being lauded by lawmakers as a beacon of sustainable business law back in 2023, to the years of dithering, delay and dilution of its rules that have followed – has been painful enough. Imagine how it must have been for those with skin in the game.
The delegated act adopted by the EU executive on Monday (13 July) confirms an announcement made in May, when the commission added instant coffee and palm oil derivatives to the list of products covered, but removed leather. That, say civil society groups, who argue that there is a clear link between the leather industry and deforestation will create loopholes and foster unfair competition between sectors in the EU.
Yet civil society leaders were trying to stay magnanimous on Monday.
“Despite continued efforts to weaken the EU Deforestation Regulation, this decision should mark the end of legal and political uncertainty around the EUDR”, said WWF’s Béatrice Wedeux.
“With clarity on the product scope and the IT system in place, there are no remaining excuses for delay: companies and member states now have all the tools they need to move decisively towards full implementation,” she added.
There is now no escaping EUDR, which requires businesses trading cocoa, coffee, timber, palm oil and rubber to ensure that their products were not linked to deforestation anywhere in their supply chain.
Andrew Puzder, Washington’s ambassador to the EU, has described the EUDR as “selective protectionism” after the EU declined to exempt US companies from its provisions. He says that the dilution of the original EUDR has exempted small EU-based firms from the due diligence requirements that have been landed on the US and other foreign businesses. On that, at least, he has a point.
But the EUDR must be doing something right because it is spawning imitation – and they say imitation is the sincerest form of flattery.
UK joins the party
The UK announced last month that it would introduce its own anti-deforestation law modelled on EUDR, much to the chagrin of the Trump administration which has warned of “strong concerns” about the UK doing a copy-and-paste of the EU rules.
That could be a sign of the UK’s keenness to get ever closer to the EU single market. Even so, it is a sign that EUDR and more stringent due diligence requirements on companies are here to stay.
In all of the delays and efforts to water down the EUDR – the due diligence requirements have been stripped down by around 75 percent after the EU Commission realised that the paperwork being submitted would cause the collapse of the EU’s IT system – it has been easy to lose sight of the purpose of the law.
And in the meantime, every one-year postponement of the EUDR has, say green NGOs, caused the loss of nearly 50 million trees and the release of 16.8 million tonnes of CO₂ into the atmosphere.
The regulation’s aim is to require sellers of beef, coffee, chocolate, palm oil and wood to show their goods can be traced to land that has not been deforested.
It is said that the road to hell is paved with good intentions. Only time and implementation will show whether the saying applies to the EUDR.
https://euobserver.com/227360/missing-the-wood-for-the-trees-the-eus-unloved-deforestation-law-reaches-endgame/
---------
US MAHA war on seed oils could benefit Asian palm and coconut oil
Even without an outright ban, the Robert F. Kennedy Jr.-led Make America Healthy Again campaign is affecting consumer behavior
Thanks to Robert F. Kennedy Jr. and his Make America Healthy Again tribe, seed oils have been getting a lot of unwanted attention. The MAHA types despise them.
Despise is not too strong a word. Cate Shanahan, a central MAHA figure known as “the mother of the seed oil movement,” calls them the Hateful Eight oils. That formulation expresses MAHA’s sentiments while avoiding the sticky fact that two of the eight — corn and rice bran — aren’t actually seed oils, as they aren’t extracted from seeds. The others are canola, cottonseed, grape seed, safflower, soybean and sunflower.
Whatever they’re called, the MAHA campaign against them is affecting consumer behavior. In an International Food Information Council survey, 28% of Americans said they avoid seed oils.
If you grow one or more of these eight crops, should you be concerned?
MAHA types believe that the refining of these eight oils leaves those who consume them with dangerous inflammatory toxins in their systems. MAHA has problems with several refining practices – the high heat, the bleaching and the use of chemical solvents like hexane.
Having rejected seed oils, the MAHA crowd embraces something the medical establishment considers dangerous: saturated fats. In releasing the government’s latest dietary guidelines, which promote cooking with butter and beef tallow, Health and Human Services Secretary Robert F. Kennedy Jr. declared he was “ending the war on saturated fats.”
Medical establishment organizations like the American Heart Association say seed oils are safe and beneficial. The inflammation argument is flawed, AHA says, adding that these oils are far better for heart health than butter and beef tallow. The headline on a 2024 AHA press release read, “There’s no reason to avoid seed oils and plenty of reasons to eat them.”
In this era of widespread public distrust of the “establishment,” the MAHA view is gaining the upper hand.
Farm groups are worried. In Senate testimony in February, former American Soybean Association president Josh Gackle decried “false claims” about soybean and other seed oils and threats to ban them. “Soybean oil consumption for edible uses is a stable market that has provided continued certainty for our farmers,” he said, “and removing that market would cause an immediate and significant decline in soybean oil prices.”
A 2025 seed oil study funded by the United Soybean Board concluded that a seed oil ban would raise food prices and lower farm incomes.
The big winner of a ban, the study said, would be imported palm oil.
If a ban would lower farm incomes, what effect has the 28% of the public avoiding seed oils had? Presumably there’s been some impact; if 100% of the public were using seed oils, demand would be higher, a plus for crop prices.
Still, there are reasons to think that for some crops, at least, the impact of consumer seed oil avoidance has been relatively small. Only a small percentage of US-grown corn goes to food oil. For soybeans, a big chunk of the oil produced has been diverted for use as biofuels. Restaurants continue to use seed oils because they’re economical.
Moreover, we don’t have any context for the 28% figure. What was the percentage five years ago? Ten? Was there ever a time when the number was zero? The avoidance may be built into crop price levels. Unless it’s increasing rapidly, it may not be driving prices down much.
Mainstream science and MAHA agree on one thing: Olive oil is good. It’s made by simply pressing olives rather than using heat and chemicals, which clears it with MAHA. Both the MAHA-influenced new government guidelines and establishment organizations like the American Heart Association recommend it.
But extra virgin olive oil isn’t likely to be the only cooking oil on pantry shelves. The taste of it doesn’t work with some foods. It has a low smoke point, so some cooks prefer seed oils for cooking at very high temperatures. And it’s more expensive.
Still, seed oils are fighting an uphill battle in the court of public opinion. The product description on the package of LesserEvil popcorn boasts of not using “sneaky vegetable oils.” LesserEvil uses coconut oil, which is particularly high in saturated fats. The LesserEvil brand is showing up on more and more store shelves.
Growers have to wonder: Could 28% today be 50% tomorrow?
https://asiatimes.com/2026/07/us-maha-war-on-seed-oils-could-benefit-asian-palm-and-coconut-oil/
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July 13, 2026
EU Commission updates product scope and digital tools to support implementation of EU Deforestation Regulation
The measures build on the legislative amendment agreed in December 2025 and are part of the simplification package presented in May 2026.
The Commission adopted two measures today (13 July) to support the implementation of the EU Deforestation Regulation (EUDR), which will begin to apply by the end of December.
A Delegated Act updates and simplifies the list of products covered by the Regulation, while an Implementing Act sets out the functioning of the Information System for submitting due diligence statements and simplified declarations.
These measures build on the legislative amendment agreed in December 2025 and are part of the simplification package presented in May 2026. Together, they provide greater legal certainty for businesses, Member States and partner countries ahead of the Regulation's application.
“With this package, we are providing the clarity and predictability that businesses, Member States and our international partners need to prepare for the application of the EU Deforestation Regulation at the end of 2026.
Following the agreement reached by co-legislators, we have completed the simplification review and put in place the necessary measures to ensure a smooth and effective implementation of the Regulation.”
Jessika Roswall, European Commissioner for Environment, Water Resilience and a Competitive Circular Economy
Targeted changes to the product scope
The Delegated Act updates Annex I of the EUDR, following stakeholder consultation and public feedback. It removes cattle hides, skins and leather, re-treaded tyres, soybeans for sowing, articles of vulcanised rubber, conveyor and transmission belts, and aircraft and motor vehicle seats from the scope of the Regulation.
At the same time, it adds soluble coffee, certain palm oil derivatives and frozen cattle tongues.
All the changes to the product scope, including those introduced after the public feedback, have been assessed with the methodology presented in the Staff Working Document published with the draft Delegated Act on 4 May.
To allow businesses sufficient time to prepare, the new products added to the scope will become subject to the Regulation from 30 December 2027.
The update of the product scope does not alter the list of commodities covered by the regulation, but concerns products derived from those commodities.
The Delegated Act also clarifies that samples and products used for analysis, examination and testing are outside the scope of the Regulation and introduces targeted exemptions for specific categories of products, including waste, used and second-hand products, packing material, and products used in the manufacture of medicinal products.
The Delegated Act will now be sent to the European Parliament and the Council of the EU for scrutiny before entering into force.
Information System Implementing Act
The Commission also adopted the Implementing Act establishing the technical rules for the EUDR Information System.
The updated system introduces operational simplifications requested by Member States and industry, including simplified declarations for micro and small primary operators and updated technical specifications for automated application programming interfaces (APIs).
Following the necessary technical updates, the Information System reopened at the end of June. The Commission will continue to improve the system, provide regular updates to its documentation and offer training sessions for companies starting at the end of July.
Simplification package
The measures adopted today complete the simplification package presented by the Commission in May 2026, which also included an updated Guidance document and Frequently Asked Questions. The Guidance, previously available only in English, has now been formally adopted in all EU languages.
Together with the legislative amendment agreed last December, these measures provide greater legal certainty and predictability for businesses and competent authorities while ensuring the Regulation can be applied effectively.
The Regulation will apply from 30 December 2026 for large and medium-sized operators and for micro and small operators already covered by the EU Timber Regulation, and from 30 June 2027 for other micro and small operators.
Background
The EU Deforestation Regulation aims to ensure that products placed on the EU market or exported from it do not contribute to deforestation or forest degradation.
It covers seven commodities associated with deforestation: cattle, cocoa, coffee, palm oil, rubber, soy and wood, as well as a range of derived products. Operators placing these products on the EU market, or exporting them, must demonstrate that they are deforestation-free and produced in accordance with the relevant legislation of the country of production.
Even before entering into application, the Regulation has already encouraged positive changes in public and private sectors, bringing greater transparency to supply chains and opening new market opportunities for deforestation-free products.
https://environment.ec.europa.eu/news/commission-updates-product-scope-and-tools-support-eudr-2026-07-13_en
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What happens when Indonesia’s top corruption buster is suspected of graft himself?
Police seized 74kg of gold and US$15 million in cash linked to Febrie Adriansyah, who until last week headed the Special Crimes Division
Rows of gold bars, stacks of US and Singapore dollars and seven suitcases found inside a locked safe have become the defining images of one of the biggest scandals to hit Indonesia’s law-enforcement establishment in years.
Police said they recovered 74kg (160lbs) of gold, plus more than US$15 million in multiple currencies from a house linked to Febrie Adriansyah, who until last week served as Indonesia’s deputy attorney general for special crimes, and is now suspected of corruption.
Authorities estimate the bullion and cash found at the Sentul residence in Bogor, southeast of Jakarta, are worth about 476 billion rupiah (US$26 million). Images of neatly arranged gold bars and bundles of banknotes have featured prominently across Indonesian television and news websites since the raids.
The scandal raises serious questions for Indonesia, where the rupiah tumbled 10 per cent in the past year to become Asia’s worst-performing currency, over concerns about institutional integrity and policymaking. A big question is whether the discovery of the riches shows that safeguards against corruption are working, or whether a succession of scandals indicates corruption is worsening.
“Any corruption case involving a senior government official can negatively affect investor confidence, as it raises concerns about governance and the investment climate,” said Henry Wibowo, director at Alphagate Capital in Jakarta. “However, if this reflects a genuine commitment by the government to strengthen governance and clean up corruption, it could ultimately be viewed positively.”
The case has created an unusual institutional dilemma. Police said the investigations would be transferred in stages to the Attorney General’s Office, meaning the institution Febrie led until days ago would now handle proceedings against its former senior official.
News outlet Tempo meanwhile reported an apparent confrontation involving police investigators and military personnel during the searches. The military said its presence was part of an authorised assignment to protect prosecutors and was not intended to obstruct the investigation.
The episode reflects tensions dating to the separation of the police from the armed forces after the fall of president Suharto, according to Kevin O’Rourke, an independent political analyst who publishes Reformasi Weekly. The late dictator’s fall in 1998 ushered in both democracy and a security overhaul aimed at curbing the military’s role in politics and domestic law enforcement.
“This is the latest iteration of long-standing tensions originating in the change in the institutions’ respective roles upon the fall of Suharto,” O’Rourke said.
Money-laundering suspects
Police on Saturday named Febrie and businessman Don Ritto as suspects in corruption and money-laundering investigations after questioning 15 witnesses, consulting two experts and searching 13 locations in Jakarta and nearby Sentul. Indonesia’s Corruption Eradication Commission separately said it suspected the Sentul residence was formally registered under the name of an unrelated nominee.
Febrie has acknowledged the property where the gold and cash were found was his long-time private residence but denied wrongdoing or ownership of the assets. He said the gold and money “have an owner”, without publicly identifying them, and that their provenance would be explained through the legal process.
Immigration authorities have barred Febrie and Ritto from leaving Indonesia for 20 days, but Febrie had not been detained as of the latest public statements by prosecutors. Ritto could not immediately be reached for comment.
The police announcement came a day after Febrie resigned. The Attorney General’s Office said his departure was intended to safeguard the integrity, objectivity and neutrality of law enforcement.
As Indonesia’s top corruption prosecutor and the operational head of one of President Prabowo Subianto’s flagship enforcement programmes, Febrie wielded influence across criminal investigations, state revenue and natural-resource governance.
https://www.scmp.com/news/asia/southeast-asia/article/3360349/what-happens-when-indonesias-top-corruption-buster-suspected-graft-himself
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Malaysia poised to gain as Indonesia likely to cut palm oil exports, says MPOC
KUALA LUMPUR, July 13 — The recent launch of Indonesia’s nationwide rollout of the B50 biodiesel mandate presents an opportunity for Malaysia to strengthen its existing palm oil markets while expanding its market share in selected destinations.
Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Sron said Malaysia is expected to benefit from reduced exportable palm oil supplies from Indonesia following the B50 mandate, which is likely to divert more palm oil towards domestic consumption.
“As the world’s second-largest palm oil producer and together with Indonesia accounting for around 85 per cent of global palm oil exports, Malaysia is the natural alternative source for importers seeking to secure reliable supplies.
“However, the extent of this benefit will depend on several market factors. Global demand for palm oil is influenced not only by Indonesian export availability but also by the supply and price competitiveness of competing vegetable oils, particularly soybean oil,” she told Bernama.
Belvinder said the full implementation of the B50 mandate would require an additional three million tonnes of palm oil annually, increasing palm oil demand for biodiesel to around 16 million tonnes and total domestic consumption to about 26 million tonnes. This is equivalent to 52 per cent of Indonesia’s 2025 palm oil production.
“This would leave only 48 per cent of its production available for export. This is a significant change compared with 2019, when Indonesia’s biodiesel mandate was B20 and the country exported around 68 per cent of its annual palm oil production.
“This shift is already reflected in global trade. Palm oil accounted for around 56 per cent of the global oils and fats trade in 2019, but its share declined to 49 per cent in 2025,” she added.
According to reports, Indonesia’s new B50 biodiesel mandate took effect on July 1, requiring diesel fuel to contain a 50 per cent blend of palm oil-based biodiesel, up from the previous 40 per cent blending requirement.
Belvinder noted that a higher biodiesel mandate tends to provide a structural floor for crude palm oil (CPO) prices, as more palm oil is absorbed by the domestic market, reducing the volume available for export.
Therefore, she said CPO prices will continue to be influenced mainly by global supply-demand dynamics.
“The availability and price performance of soft oils, energy prices, geopolitical developments, and changes in trade policies will also shape the long-term price outlook.
“For the second half of 2026, CPO prices are expected within the range of RM4,300-RM4,700 per tonne, supported by a tighter supply outlook in Indonesia and growing El Nino risks,” said Belvinder.
Nevertheless, CPO price gains may be capped by elevated vegetable oil inventories in key importing markets such as China and India. “Biodiesel economics have also become less supportive, as gasoil prices have fallen below palm oil prices in the futures market,” she added. — Bernama
https://www.malaymail.com/news/money/2026/07/13/malaysia-poised-to-gain-as-indonesia-likely-to-cut-palm-oil-exports-says-mpoc/227436
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Prabowo eyes Indonesia's economic revival starting from villages
Jakarta (ANTARA) - President Prabowo Subianto said Indonesia's economic revival is expected to begin at the village level before expanding to subdistricts and districts, allowing money to circulate and remain within local communities.
"We will ensure that farmers, fishermen, and workers become more prosperous. Our economy will rise from villages, subdistricts, and districts; and the money will stay in those areas," Prabowo said while delivering remarks during the celebration of the 79th National Cooperatives Day (Harkopnas) in Senayan, Jakarta, on Sunday.
The government will ensure that economic growth reaches the people, he added. Prabowo reaffirmed the government's commitment to improving the welfare of farmers, fishermen, and workers.
Related news: Govt targets 40,000 village cooperatives by year-end
Prabowo had received reports indicating the welfare of farmers has improved significantly, enabling some of them to travel abroad for holidays.
"That's perfectly fine. They deserve a holiday abroad too," he said.
The government, the president added, is working to reverse conditions that have long caused the people's wealth to be concentrated elsewhere by ensuring the benefits of economic growth are felt more directly by the public.
Prabowo also stressed the government is not opposed to large corporations. As a major economy, Indonesia continues to need the contribution of all economic actors, including cooperatives, MSMEs, private sector, state-owned enterprises (SOEs), and region-owned enterprises.
He noted all those sectors should be strengthened simultaneously as part of the "Indonesia Incorporated" concept, which is expected to reinforce the national economy.
"That is what I mean by Indonesia Incorporated. It is also what our founding fathers envisioned, with cooperatives serving as one of the pillars of the national economy," he noted.
Prabowo expressed optimism that the cooperative movement would grow into one of the country's key economic forces, supporting Indonesia's rise as a prosperous and economically strong nation.
"Strengthening cooperatives does not mean weakening other sectors. Of course, we will strengthen them all. Indonesia is rich, Indonesia will rise, and Indonesia will be able to strengthen every pillar of its economy," the President said.
https://en.antaranews.com/amp/news/422372/prabowo-eyes-indonesias-economic-revival-starting-from-villages
EU Commission updates product scope and digital tools to support implementation of EU Deforestation Regulation
The measures build on the legislative amendment agreed in December 2025 and are part of the simplification package presented in May 2026.
The Commission adopted two measures today (13 July) to support the implementation of the EU Deforestation Regulation (EUDR), which will begin to apply by the end of December.
A Delegated Act updates and simplifies the list of products covered by the Regulation, while an Implementing Act sets out the functioning of the Information System for submitting due diligence statements and simplified declarations.
These measures build on the legislative amendment agreed in December 2025 and are part of the simplification package presented in May 2026. Together, they provide greater legal certainty for businesses, Member States and partner countries ahead of the Regulation's application.
“With this package, we are providing the clarity and predictability that businesses, Member States and our international partners need to prepare for the application of the EU Deforestation Regulation at the end of 2026.
Following the agreement reached by co-legislators, we have completed the simplification review and put in place the necessary measures to ensure a smooth and effective implementation of the Regulation.”
Jessika Roswall, European Commissioner for Environment, Water Resilience and a Competitive Circular Economy
Targeted changes to the product scope
The Delegated Act updates Annex I of the EUDR, following stakeholder consultation and public feedback. It removes cattle hides, skins and leather, re-treaded tyres, soybeans for sowing, articles of vulcanised rubber, conveyor and transmission belts, and aircraft and motor vehicle seats from the scope of the Regulation.
At the same time, it adds soluble coffee, certain palm oil derivatives and frozen cattle tongues.
All the changes to the product scope, including those introduced after the public feedback, have been assessed with the methodology presented in the Staff Working Document published with the draft Delegated Act on 4 May.
To allow businesses sufficient time to prepare, the new products added to the scope will become subject to the Regulation from 30 December 2027.
The update of the product scope does not alter the list of commodities covered by the regulation, but concerns products derived from those commodities.
The Delegated Act also clarifies that samples and products used for analysis, examination and testing are outside the scope of the Regulation and introduces targeted exemptions for specific categories of products, including waste, used and second-hand products, packing material, and products used in the manufacture of medicinal products.
The Delegated Act will now be sent to the European Parliament and the Council of the EU for scrutiny before entering into force.
Information System Implementing Act
The Commission also adopted the Implementing Act establishing the technical rules for the EUDR Information System.
The updated system introduces operational simplifications requested by Member States and industry, including simplified declarations for micro and small primary operators and updated technical specifications for automated application programming interfaces (APIs).
Following the necessary technical updates, the Information System reopened at the end of June. The Commission will continue to improve the system, provide regular updates to its documentation and offer training sessions for companies starting at the end of July.
Simplification package
The measures adopted today complete the simplification package presented by the Commission in May 2026, which also included an updated Guidance document and Frequently Asked Questions. The Guidance, previously available only in English, has now been formally adopted in all EU languages.
Together with the legislative amendment agreed last December, these measures provide greater legal certainty and predictability for businesses and competent authorities while ensuring the Regulation can be applied effectively.
The Regulation will apply from 30 December 2026 for large and medium-sized operators and for micro and small operators already covered by the EU Timber Regulation, and from 30 June 2027 for other micro and small operators.
Background
The EU Deforestation Regulation aims to ensure that products placed on the EU market or exported from it do not contribute to deforestation or forest degradation.
It covers seven commodities associated with deforestation: cattle, cocoa, coffee, palm oil, rubber, soy and wood, as well as a range of derived products. Operators placing these products on the EU market, or exporting them, must demonstrate that they are deforestation-free and produced in accordance with the relevant legislation of the country of production.
Even before entering into application, the Regulation has already encouraged positive changes in public and private sectors, bringing greater transparency to supply chains and opening new market opportunities for deforestation-free products.
https://environment.ec.europa.eu/news/commission-updates-product-scope-and-tools-support-eudr-2026-07-13_en
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What happens when Indonesia’s top corruption buster is suspected of graft himself?
Police seized 74kg of gold and US$15 million in cash linked to Febrie Adriansyah, who until last week headed the Special Crimes Division
Rows of gold bars, stacks of US and Singapore dollars and seven suitcases found inside a locked safe have become the defining images of one of the biggest scandals to hit Indonesia’s law-enforcement establishment in years.
Police said they recovered 74kg (160lbs) of gold, plus more than US$15 million in multiple currencies from a house linked to Febrie Adriansyah, who until last week served as Indonesia’s deputy attorney general for special crimes, and is now suspected of corruption.
Authorities estimate the bullion and cash found at the Sentul residence in Bogor, southeast of Jakarta, are worth about 476 billion rupiah (US$26 million). Images of neatly arranged gold bars and bundles of banknotes have featured prominently across Indonesian television and news websites since the raids.
The scandal raises serious questions for Indonesia, where the rupiah tumbled 10 per cent in the past year to become Asia’s worst-performing currency, over concerns about institutional integrity and policymaking. A big question is whether the discovery of the riches shows that safeguards against corruption are working, or whether a succession of scandals indicates corruption is worsening.
“Any corruption case involving a senior government official can negatively affect investor confidence, as it raises concerns about governance and the investment climate,” said Henry Wibowo, director at Alphagate Capital in Jakarta. “However, if this reflects a genuine commitment by the government to strengthen governance and clean up corruption, it could ultimately be viewed positively.”
The case has created an unusual institutional dilemma. Police said the investigations would be transferred in stages to the Attorney General’s Office, meaning the institution Febrie led until days ago would now handle proceedings against its former senior official.
News outlet Tempo meanwhile reported an apparent confrontation involving police investigators and military personnel during the searches. The military said its presence was part of an authorised assignment to protect prosecutors and was not intended to obstruct the investigation.
The episode reflects tensions dating to the separation of the police from the armed forces after the fall of president Suharto, according to Kevin O’Rourke, an independent political analyst who publishes Reformasi Weekly. The late dictator’s fall in 1998 ushered in both democracy and a security overhaul aimed at curbing the military’s role in politics and domestic law enforcement.
“This is the latest iteration of long-standing tensions originating in the change in the institutions’ respective roles upon the fall of Suharto,” O’Rourke said.
Money-laundering suspects
Police on Saturday named Febrie and businessman Don Ritto as suspects in corruption and money-laundering investigations after questioning 15 witnesses, consulting two experts and searching 13 locations in Jakarta and nearby Sentul. Indonesia’s Corruption Eradication Commission separately said it suspected the Sentul residence was formally registered under the name of an unrelated nominee.
Febrie has acknowledged the property where the gold and cash were found was his long-time private residence but denied wrongdoing or ownership of the assets. He said the gold and money “have an owner”, without publicly identifying them, and that their provenance would be explained through the legal process.
Immigration authorities have barred Febrie and Ritto from leaving Indonesia for 20 days, but Febrie had not been detained as of the latest public statements by prosecutors. Ritto could not immediately be reached for comment.
The police announcement came a day after Febrie resigned. The Attorney General’s Office said his departure was intended to safeguard the integrity, objectivity and neutrality of law enforcement.
As Indonesia’s top corruption prosecutor and the operational head of one of President Prabowo Subianto’s flagship enforcement programmes, Febrie wielded influence across criminal investigations, state revenue and natural-resource governance.
https://www.scmp.com/news/asia/southeast-asia/article/3360349/what-happens-when-indonesias-top-corruption-buster-suspected-graft-himself
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Malaysia poised to gain as Indonesia likely to cut palm oil exports, says MPOC
KUALA LUMPUR, July 13 — The recent launch of Indonesia’s nationwide rollout of the B50 biodiesel mandate presents an opportunity for Malaysia to strengthen its existing palm oil markets while expanding its market share in selected destinations.
Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Sron said Malaysia is expected to benefit from reduced exportable palm oil supplies from Indonesia following the B50 mandate, which is likely to divert more palm oil towards domestic consumption.
“As the world’s second-largest palm oil producer and together with Indonesia accounting for around 85 per cent of global palm oil exports, Malaysia is the natural alternative source for importers seeking to secure reliable supplies.
“However, the extent of this benefit will depend on several market factors. Global demand for palm oil is influenced not only by Indonesian export availability but also by the supply and price competitiveness of competing vegetable oils, particularly soybean oil,” she told Bernama.
Belvinder said the full implementation of the B50 mandate would require an additional three million tonnes of palm oil annually, increasing palm oil demand for biodiesel to around 16 million tonnes and total domestic consumption to about 26 million tonnes. This is equivalent to 52 per cent of Indonesia’s 2025 palm oil production.
“This would leave only 48 per cent of its production available for export. This is a significant change compared with 2019, when Indonesia’s biodiesel mandate was B20 and the country exported around 68 per cent of its annual palm oil production.
“This shift is already reflected in global trade. Palm oil accounted for around 56 per cent of the global oils and fats trade in 2019, but its share declined to 49 per cent in 2025,” she added.
According to reports, Indonesia’s new B50 biodiesel mandate took effect on July 1, requiring diesel fuel to contain a 50 per cent blend of palm oil-based biodiesel, up from the previous 40 per cent blending requirement.
Belvinder noted that a higher biodiesel mandate tends to provide a structural floor for crude palm oil (CPO) prices, as more palm oil is absorbed by the domestic market, reducing the volume available for export.
Therefore, she said CPO prices will continue to be influenced mainly by global supply-demand dynamics.
“The availability and price performance of soft oils, energy prices, geopolitical developments, and changes in trade policies will also shape the long-term price outlook.
“For the second half of 2026, CPO prices are expected within the range of RM4,300-RM4,700 per tonne, supported by a tighter supply outlook in Indonesia and growing El Nino risks,” said Belvinder.
Nevertheless, CPO price gains may be capped by elevated vegetable oil inventories in key importing markets such as China and India. “Biodiesel economics have also become less supportive, as gasoil prices have fallen below palm oil prices in the futures market,” she added. — Bernama
https://www.malaymail.com/news/money/2026/07/13/malaysia-poised-to-gain-as-indonesia-likely-to-cut-palm-oil-exports-says-mpoc/227436
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Prabowo eyes Indonesia's economic revival starting from villages
Jakarta (ANTARA) - President Prabowo Subianto said Indonesia's economic revival is expected to begin at the village level before expanding to subdistricts and districts, allowing money to circulate and remain within local communities.
"We will ensure that farmers, fishermen, and workers become more prosperous. Our economy will rise from villages, subdistricts, and districts; and the money will stay in those areas," Prabowo said while delivering remarks during the celebration of the 79th National Cooperatives Day (Harkopnas) in Senayan, Jakarta, on Sunday.
The government will ensure that economic growth reaches the people, he added. Prabowo reaffirmed the government's commitment to improving the welfare of farmers, fishermen, and workers.
Related news: Govt targets 40,000 village cooperatives by year-end
Prabowo had received reports indicating the welfare of farmers has improved significantly, enabling some of them to travel abroad for holidays.
"That's perfectly fine. They deserve a holiday abroad too," he said.
The government, the president added, is working to reverse conditions that have long caused the people's wealth to be concentrated elsewhere by ensuring the benefits of economic growth are felt more directly by the public.
Prabowo also stressed the government is not opposed to large corporations. As a major economy, Indonesia continues to need the contribution of all economic actors, including cooperatives, MSMEs, private sector, state-owned enterprises (SOEs), and region-owned enterprises.
He noted all those sectors should be strengthened simultaneously as part of the "Indonesia Incorporated" concept, which is expected to reinforce the national economy.
"That is what I mean by Indonesia Incorporated. It is also what our founding fathers envisioned, with cooperatives serving as one of the pillars of the national economy," he noted.
Prabowo expressed optimism that the cooperative movement would grow into one of the country's key economic forces, supporting Indonesia's rise as a prosperous and economically strong nation.
"Strengthening cooperatives does not mean weakening other sectors. Of course, we will strengthen them all. Indonesia is rich, Indonesia will rise, and Indonesia will be able to strengthen every pillar of its economy," the President said.
https://en.antaranews.com/amp/news/422372/prabowo-eyes-indonesias-economic-revival-starting-from-villages
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July 12, 2026
Indonesia's B50 Program May Reduce Foreign Exchange Earnings
TEMPO.CO, Jakarta - The Indonesia Strategic and Economic Action Institution (ISEAI) stated that the 50 percent biodiesel program (B50) has the potential to reduce the country's foreign exchange earnings by US$2.7 billion per year due to a decrease in the volume of CPO exports.
The figure is based on the assumption of the average CPO price CIF Rotterdam of US$1,356 per metric ton in early 2026.
ISEAI referred to data from the Indonesian Palm Oil Entrepreneurs Association (GAPKI), which projected that national palm oil exports would be cut by around 2 million tons in the second half of 2026, or nearly 4 million tons per year.
"This creates a paradox: the policy to save foreign exchange from diesel imports actually cuts foreign exchange from the national leading agricultural sector," ISEAI said in a written statement on Friday, July 10, 2026.
ISEAI considers that the implementation of the B50 program amidst the stagnation of raw material production will trigger a crisis in the governance of palm oil commodities.
"The direct impact of this shift in allocation is a decrease in the capacity of Indonesia's CPO exports to the international market," said senior ISEAI analyst Rony P. Sasmita.
Based on ISEAI's research, the B50 program, which was inaugurated on July 9, 2026, is being implemented when the growth of Indonesia's crude palm oil (CPO) supply is stagnant. Over the past five years, ISEAI noted that Indonesia's CPO production has flattened at around 48-51 million tons per year due to the slow progress of the People's Oil Palm Rejuvenation (PSR) program and a decrease in plant productivity.
Although CPO production in 2025 grew by 7.26 percent to reach 51.66 million tons, domestic end stocks plummeted sharply by 19.79 percent to only 2.068 million tons due to very high domestic absorption.
As a result, the increasing allocation of CPO for domestic needs, especially for biodiesel (B50), will lead to a decrease in export capacity.
Out of a total domestic consumption of 2.141 million tons as of April 2026, the majority is used for biodiesel with a requirement of 1.137 million tons. The second largest requirement is for the food sector, amounting to 831,000 tons, while the oleochemical sector requires around 173,000 tons.
https://en.tempo.co/read/2113095/iseai-indonesias-b50-program-may-reduce-foreign-exchange-earnings
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The Blind Spot in the EU’s New Deforestation Regulations: Laws and Satellites Don’t Save Forests — People Do
The European Union Deforestation Regulation (EUDR) represents one of the most ambitious and well-meaning legislative efforts to protect our planet’s remaining forests. For the global development community, it’s a monumental step forward.
But as the twice-delayed compliance deadline looms at the end of 2026, a potential flaw threatens to undermine the legislation.
To meet strict EUDR data requirements, major commodity buyers are turning to remote sensing and satellite AI to prove that their cocoa, coffee, palm oil, soya, timber, cattle and rubber are deforestation-free.
But what happens when an algorithm misreads the landscape? More importantly, what happens to the vulnerable small farmers who are abruptly cut out of the market due to this sort of error?
If the industry relies solely on automated compliance without human input and context, we risk creating a massive “leakage” problem, where deforestation-linked goods are simply rerouted and sold to countries with no anti-deforestation laws. Overreliance on algorithms may ultimately clean up European corporate markets and spreadsheets while quietly pushing smallholders and deforestation itself into the shadows of the grey market. That isn’t the intended aim of EUDR, but it’s a very real possibility.
The Limitations of Automated Compliance
The Earth Observation sector is in the middle of a golden age, as satellites and data analytics tools enable canopy and other landscape changes to be mapped from space with astonishing precision. For buyers hoping to avoid sizeable EUDR non-compliance fines, this capability offers a viable solution: They can now conduct risk mitigation without ever having to set foot in the plantation.
However, satellite algorithms have a key limitation: they can identify changes in forest cover but cannot determine intent or causality, nor can they account for complex realities on the ground.
In my work at MosaiX and the Earthqualizer Foundation, I bridge the gap between digital innovation and local realities every day. By helping global fast-moving consumer goods brands and supply chain partners navigate EUDR compliance using tools like satellite imagery and land plot mapping, I’ve seen firsthand the limitations of these technologies. When satellite data is processed blindly without human insight and local context, it oversimplifies complex geographies. For a small farmer wrongly accused of deforestation who lacks the resources to prove their innocence, a false positive can be devastating.
The Illusion of Compliance and the Threat of Leakage
Under the EUDR, the law is unyielding: Any plot of land deforested after the December 31, 2020 cut-off date is permanently barred from the EU market. And while the law states that companies must mitigate “non-negligible” deforestation risk before a product can enter Europe, it leaves the actual response entirely up to the discretion of the corporate buyer. Faced with a red pixel indicating tree-cover loss and no response protocol issued by EUDR, the path of least resistance for a corporate buyer is often to immediately exclude the supplier entirely rather than investigate. This creates the illusion of compliance, but it is a failure in the context of sustainable development.
When small farmers are frozen out of premium, regulated markets, they do not simply pack up their tools and stop farming. Survival dictates that they find another buyer. So instead, they are often driven into “leakage markets” — i.e., regions or buyers with lower environmental standards, less scrutiny and lower prices. In these grey markets, deforestation continues while the farmers risk being pushed into poverty.
We cannot achieve environmental sustainability by sacrificing social equity. We need to design systems that keep smallholders and small suppliers included in sustainable markets and allow for their re-entry, rather than erecting algorithmic walls they struggle to climb.
Three Ways to Prevent Supply Chain Exclusion in the EUDR Era
To ensure regulations like the EUDR achieve their goals without over-reliance on satellite technology, we must fundamentally shift how supply chain data is managed and applied. Companies need to move beyond simple automated compliance and exclusion and prioritize social equity alongside environmental protection. Here are three steps companies aiming to comply with both the letter and the spirit of the law can take to bridge the gap between orbital tech and human geography.
1. Anchor monitoring systems to accurate, up-to-date baselines: Companies must ensure that deforestation alerts are generated from verified, current land-use baselines rather than outdated or generic datasets. Weak baseline maps lead to overwhelming false positives, as they struggle to distinguish between a protected natural forest and an active agricultural plot. This often results in misdirected resources and unnecessary supplier friction, ultimately penalizing those at the very bottom of the supply chain. Monitoring systems must also enable precise supplier attribution, with traceability that connects the full supply chain directly to a specific plot of land. Without this granular traceability, automated alerts drive inaccurate accountability — resulting in blanket bans on entire regions or cooperatives, rather than targeted corrective action.
2. Implement an alert response protocol grounded in human-verified data: While the EUDR mandates zero tolerance for deforestation, corporate buyers shouldn’t treat an algorithmic red flag as an automatic suspension. Detection should trigger a conversation and a field verification, not an immediate ban. Automated screening must activate a clear response protocol for high-risk tree-cover loss alerts. This protocol should include on-the-ground verification to establish the true context of the clearing — determining whether it represents an actual land-use conversion, a natural event, or third-party encroachment along disputed land boundaries. Ultimately, automated alerts flag risk; field verification determines accountability.
To execute this verification fairly and interpret satellite data accurately, companies must invest in localized partnerships. Collaborating with local implementation experts and community organizations provides the nuanced knowledge required to investigate alerts thoroughly, ensuring that strict regulatory compliance doesn’t come at the cost of unjust supplier exclusion.
3. Shift from supply chain exclusion to Recovery and Re-entry Programmes: Perhaps the most significant flaw in the current EUDR compliance landscape is the lack of a route to redemption. Fearing massive fines for non-compliance, risk-averse corporate buyers are reacting with blanket, permanent expulsions of the smallholders themselves. Instead, companies should look to collaborate and pioneer Recovery and Re-Entry Programmes. By providing a structured pathway for suppliers to acknowledge responsibility, restore affected areas and safely regain market access, these programmes transform a rigid compliance risk into a genuine opportunity for landscape-level rehabilitation.
Conclusion
The EUDR is a landmark piece of legislation, and satellites and AI have given us indispensable visibility into our supply chains. But at the end of the day, they are only tools.
Laws and satellites do not save forests; people do. Getting compliance data from space is an incredible first step, but it fails without accurate baselines and verifiable, on-the-ground action.
Priscillia Moulin is Director of Strategy for MosaiX’s Europe branch and Senior Advisor to both Inovasi Digital and Earthqualizer.
Photo credit: Matthew de Lange https://nextbillion.net/blind-spot-in-eus-new-deforestation-regulations-laws-and-satellites-dont-save-forests-people-do/
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India's Edible oil vulnerability
Imports are a burden best avoided; biofuel focus of key suppliers signals price spike
Written by The Financial Express
After two years of decline, India’s edible oil imports in value terms rose again in oil year 2024-25 (November-October), with forex outgo of $18.3 billion compared with the previous year’s $15.9 billion. The import bill for the current year is projected to exceed $19 billion. Landed cost of edible oil imports spiked after the start of the West Asia war, and is now 11-13% higher year-on-year.
Fresh supply-side price pressures have lately emerged, owing to a likely production slump in Indonesia and Malaysia, the key exporters of these items to India, Jakarta’s roll-out of its “B-50 biodiesel programme” from July 1, and the US’s aggressive biofuel policy. Over 30% of Indonesia’s palm oil output may eventually be diverted to the biofuel sector, reducing the surplus available for exports. Malaysia also has similar plans. For India, which still meets 57% of its edible oil consumption requirement through imports, these developments are expected to impact trade and current accounts and stoke inflation.
Edible oils have become a large item in India’s import basket over recent years. As incomes rose, consumption of these items grew much faster than domestic production. Their imports surged from $9.95 billion in 2019-20 to $19.6 billion in 2021-22, though import volumes have grown at slower rates, roughly in the range of 13-16 million tonnes (MT) during the last five-six years. Clearly, the exporting countries have capitalised on India’s rising demand and its inability to sufficiently scale up domestic production.
Non-essential imports are what could be controlled through policy tools like prohibitions, tariffs, and quantitative restrictions, a notable example being the purchase of gold from overseas. As for goods and minerals that can be domestically produced or extracted, it is reasonable to expect deliberate policy action to curb imports. For example, coal imports suddenly surged a few years ago, but by ramping up domestic mining, considerable foreign exchange has since been saved. A jump in imports of electronic inputs and semiconductor components is nothing to worry about, as these lead to value-added exports and domestic value creation.
To their credit, policymakers haven’t failed to recognise the imperative of boosting edible oil production. A national mission, launched in November 2024, aims to boost primary oilseed production from 39 MT in 2022-23 to 69.7 MT by 2030-31 and achieve self-reliance. India is already the top global producer of rice bran, castor seed, safflower, sesame, mustard, and niger, and it cultivates sunflower, soya bean, and groundnut in large quantities.
Of the total imports of a little over 16 MT of cooking oils in the 2024-25 oil year, palm oil shipments accounted for over 47%, while sunflower and soybean oils accounted for the balance. Therefore, raising palm oil output manifold is critical to self-sufficiency. The oil palm mission has made significant headway over the past decade. However, to raise crude palm oil production from around 0.4 MT now to the targeted 2.8 MT by 2029-30, the cultivated area needs to extend beyond Andhra Pradesh and Telangana.
Cluster-based interventions and improved seed systems can help boost yield. It is equally important to create a robust edible oil processing industry by maintaining a large import tariff differential between crude and refined oils. Frequent tariff revisions could upset the confidence of both farmers and refining units. The support price system must prove effective and remunerative for farmers who grow edible oil plants, instead of only favouring water-guzzling grains.
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Indonesia's B50 Program May Reduce Foreign Exchange Earnings
TEMPO.CO, Jakarta - The Indonesia Strategic and Economic Action Institution (ISEAI) stated that the 50 percent biodiesel program (B50) has the potential to reduce the country's foreign exchange earnings by US$2.7 billion per year due to a decrease in the volume of CPO exports.
The figure is based on the assumption of the average CPO price CIF Rotterdam of US$1,356 per metric ton in early 2026.
ISEAI referred to data from the Indonesian Palm Oil Entrepreneurs Association (GAPKI), which projected that national palm oil exports would be cut by around 2 million tons in the second half of 2026, or nearly 4 million tons per year.
"This creates a paradox: the policy to save foreign exchange from diesel imports actually cuts foreign exchange from the national leading agricultural sector," ISEAI said in a written statement on Friday, July 10, 2026.
ISEAI considers that the implementation of the B50 program amidst the stagnation of raw material production will trigger a crisis in the governance of palm oil commodities.
"The direct impact of this shift in allocation is a decrease in the capacity of Indonesia's CPO exports to the international market," said senior ISEAI analyst Rony P. Sasmita.
Based on ISEAI's research, the B50 program, which was inaugurated on July 9, 2026, is being implemented when the growth of Indonesia's crude palm oil (CPO) supply is stagnant. Over the past five years, ISEAI noted that Indonesia's CPO production has flattened at around 48-51 million tons per year due to the slow progress of the People's Oil Palm Rejuvenation (PSR) program and a decrease in plant productivity.
Although CPO production in 2025 grew by 7.26 percent to reach 51.66 million tons, domestic end stocks plummeted sharply by 19.79 percent to only 2.068 million tons due to very high domestic absorption.
As a result, the increasing allocation of CPO for domestic needs, especially for biodiesel (B50), will lead to a decrease in export capacity.
Out of a total domestic consumption of 2.141 million tons as of April 2026, the majority is used for biodiesel with a requirement of 1.137 million tons. The second largest requirement is for the food sector, amounting to 831,000 tons, while the oleochemical sector requires around 173,000 tons.
https://en.tempo.co/read/2113095/iseai-indonesias-b50-program-may-reduce-foreign-exchange-earnings
---------
The Blind Spot in the EU’s New Deforestation Regulations: Laws and Satellites Don’t Save Forests — People Do
The European Union Deforestation Regulation (EUDR) represents one of the most ambitious and well-meaning legislative efforts to protect our planet’s remaining forests. For the global development community, it’s a monumental step forward.
But as the twice-delayed compliance deadline looms at the end of 2026, a potential flaw threatens to undermine the legislation.
To meet strict EUDR data requirements, major commodity buyers are turning to remote sensing and satellite AI to prove that their cocoa, coffee, palm oil, soya, timber, cattle and rubber are deforestation-free.
But what happens when an algorithm misreads the landscape? More importantly, what happens to the vulnerable small farmers who are abruptly cut out of the market due to this sort of error?
If the industry relies solely on automated compliance without human input and context, we risk creating a massive “leakage” problem, where deforestation-linked goods are simply rerouted and sold to countries with no anti-deforestation laws. Overreliance on algorithms may ultimately clean up European corporate markets and spreadsheets while quietly pushing smallholders and deforestation itself into the shadows of the grey market. That isn’t the intended aim of EUDR, but it’s a very real possibility.
The Limitations of Automated Compliance
The Earth Observation sector is in the middle of a golden age, as satellites and data analytics tools enable canopy and other landscape changes to be mapped from space with astonishing precision. For buyers hoping to avoid sizeable EUDR non-compliance fines, this capability offers a viable solution: They can now conduct risk mitigation without ever having to set foot in the plantation.
However, satellite algorithms have a key limitation: they can identify changes in forest cover but cannot determine intent or causality, nor can they account for complex realities on the ground.
In my work at MosaiX and the Earthqualizer Foundation, I bridge the gap between digital innovation and local realities every day. By helping global fast-moving consumer goods brands and supply chain partners navigate EUDR compliance using tools like satellite imagery and land plot mapping, I’ve seen firsthand the limitations of these technologies. When satellite data is processed blindly without human insight and local context, it oversimplifies complex geographies. For a small farmer wrongly accused of deforestation who lacks the resources to prove their innocence, a false positive can be devastating.
The Illusion of Compliance and the Threat of Leakage
Under the EUDR, the law is unyielding: Any plot of land deforested after the December 31, 2020 cut-off date is permanently barred from the EU market. And while the law states that companies must mitigate “non-negligible” deforestation risk before a product can enter Europe, it leaves the actual response entirely up to the discretion of the corporate buyer. Faced with a red pixel indicating tree-cover loss and no response protocol issued by EUDR, the path of least resistance for a corporate buyer is often to immediately exclude the supplier entirely rather than investigate. This creates the illusion of compliance, but it is a failure in the context of sustainable development.
When small farmers are frozen out of premium, regulated markets, they do not simply pack up their tools and stop farming. Survival dictates that they find another buyer. So instead, they are often driven into “leakage markets” — i.e., regions or buyers with lower environmental standards, less scrutiny and lower prices. In these grey markets, deforestation continues while the farmers risk being pushed into poverty.
We cannot achieve environmental sustainability by sacrificing social equity. We need to design systems that keep smallholders and small suppliers included in sustainable markets and allow for their re-entry, rather than erecting algorithmic walls they struggle to climb.
Three Ways to Prevent Supply Chain Exclusion in the EUDR Era
To ensure regulations like the EUDR achieve their goals without over-reliance on satellite technology, we must fundamentally shift how supply chain data is managed and applied. Companies need to move beyond simple automated compliance and exclusion and prioritize social equity alongside environmental protection. Here are three steps companies aiming to comply with both the letter and the spirit of the law can take to bridge the gap between orbital tech and human geography.
1. Anchor monitoring systems to accurate, up-to-date baselines: Companies must ensure that deforestation alerts are generated from verified, current land-use baselines rather than outdated or generic datasets. Weak baseline maps lead to overwhelming false positives, as they struggle to distinguish between a protected natural forest and an active agricultural plot. This often results in misdirected resources and unnecessary supplier friction, ultimately penalizing those at the very bottom of the supply chain. Monitoring systems must also enable precise supplier attribution, with traceability that connects the full supply chain directly to a specific plot of land. Without this granular traceability, automated alerts drive inaccurate accountability — resulting in blanket bans on entire regions or cooperatives, rather than targeted corrective action.
2. Implement an alert response protocol grounded in human-verified data: While the EUDR mandates zero tolerance for deforestation, corporate buyers shouldn’t treat an algorithmic red flag as an automatic suspension. Detection should trigger a conversation and a field verification, not an immediate ban. Automated screening must activate a clear response protocol for high-risk tree-cover loss alerts. This protocol should include on-the-ground verification to establish the true context of the clearing — determining whether it represents an actual land-use conversion, a natural event, or third-party encroachment along disputed land boundaries. Ultimately, automated alerts flag risk; field verification determines accountability.
To execute this verification fairly and interpret satellite data accurately, companies must invest in localized partnerships. Collaborating with local implementation experts and community organizations provides the nuanced knowledge required to investigate alerts thoroughly, ensuring that strict regulatory compliance doesn’t come at the cost of unjust supplier exclusion.
3. Shift from supply chain exclusion to Recovery and Re-entry Programmes: Perhaps the most significant flaw in the current EUDR compliance landscape is the lack of a route to redemption. Fearing massive fines for non-compliance, risk-averse corporate buyers are reacting with blanket, permanent expulsions of the smallholders themselves. Instead, companies should look to collaborate and pioneer Recovery and Re-Entry Programmes. By providing a structured pathway for suppliers to acknowledge responsibility, restore affected areas and safely regain market access, these programmes transform a rigid compliance risk into a genuine opportunity for landscape-level rehabilitation.
Conclusion
The EUDR is a landmark piece of legislation, and satellites and AI have given us indispensable visibility into our supply chains. But at the end of the day, they are only tools.
Laws and satellites do not save forests; people do. Getting compliance data from space is an incredible first step, but it fails without accurate baselines and verifiable, on-the-ground action.
Priscillia Moulin is Director of Strategy for MosaiX’s Europe branch and Senior Advisor to both Inovasi Digital and Earthqualizer.
Photo credit: Matthew de Lange https://nextbillion.net/blind-spot-in-eus-new-deforestation-regulations-laws-and-satellites-dont-save-forests-people-do/
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India's Edible oil vulnerability
Imports are a burden best avoided; biofuel focus of key suppliers signals price spike
Written by The Financial Express
After two years of decline, India’s edible oil imports in value terms rose again in oil year 2024-25 (November-October), with forex outgo of $18.3 billion compared with the previous year’s $15.9 billion. The import bill for the current year is projected to exceed $19 billion. Landed cost of edible oil imports spiked after the start of the West Asia war, and is now 11-13% higher year-on-year.
Fresh supply-side price pressures have lately emerged, owing to a likely production slump in Indonesia and Malaysia, the key exporters of these items to India, Jakarta’s roll-out of its “B-50 biodiesel programme” from July 1, and the US’s aggressive biofuel policy. Over 30% of Indonesia’s palm oil output may eventually be diverted to the biofuel sector, reducing the surplus available for exports. Malaysia also has similar plans. For India, which still meets 57% of its edible oil consumption requirement through imports, these developments are expected to impact trade and current accounts and stoke inflation.
Edible oils have become a large item in India’s import basket over recent years. As incomes rose, consumption of these items grew much faster than domestic production. Their imports surged from $9.95 billion in 2019-20 to $19.6 billion in 2021-22, though import volumes have grown at slower rates, roughly in the range of 13-16 million tonnes (MT) during the last five-six years. Clearly, the exporting countries have capitalised on India’s rising demand and its inability to sufficiently scale up domestic production.
Non-essential imports are what could be controlled through policy tools like prohibitions, tariffs, and quantitative restrictions, a notable example being the purchase of gold from overseas. As for goods and minerals that can be domestically produced or extracted, it is reasonable to expect deliberate policy action to curb imports. For example, coal imports suddenly surged a few years ago, but by ramping up domestic mining, considerable foreign exchange has since been saved. A jump in imports of electronic inputs and semiconductor components is nothing to worry about, as these lead to value-added exports and domestic value creation.
To their credit, policymakers haven’t failed to recognise the imperative of boosting edible oil production. A national mission, launched in November 2024, aims to boost primary oilseed production from 39 MT in 2022-23 to 69.7 MT by 2030-31 and achieve self-reliance. India is already the top global producer of rice bran, castor seed, safflower, sesame, mustard, and niger, and it cultivates sunflower, soya bean, and groundnut in large quantities.
Of the total imports of a little over 16 MT of cooking oils in the 2024-25 oil year, palm oil shipments accounted for over 47%, while sunflower and soybean oils accounted for the balance. Therefore, raising palm oil output manifold is critical to self-sufficiency. The oil palm mission has made significant headway over the past decade. However, to raise crude palm oil production from around 0.4 MT now to the targeted 2.8 MT by 2029-30, the cultivated area needs to extend beyond Andhra Pradesh and Telangana.
Cluster-based interventions and improved seed systems can help boost yield. It is equally important to create a robust edible oil processing industry by maintaining a large import tariff differential between crude and refined oils. Frequent tariff revisions could upset the confidence of both farmers and refining units. The support price system must prove effective and remunerative for farmers who grow edible oil plants, instead of only favouring water-guzzling grains.
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July 11, 2026
Inside Indonesia’s B50 Mandate: Driving Energy Independence and Tightening CPO Markets
Indonesian President Prabowo Subianto officially inaugurated Indonesia's mandatory B50 Biodiesel program on Thursday (9 July 2026) in Karawang (West Java), making Indonesia the first country (globally) to enforce a 50 percent biofuel blend. The policy drives a bold ambition: completely halting automotive diesel imports to secure national energy sovereignty.
Indonesia relies heavily on foreign diesel, primarily from Malaysia and Singapore. Together, these two neighbors accounted for 74.3 percent of national automotive diesel imports (valued at USD $2.72 billion in January-May 2026) putting severe pressure on the trade balance, especially amidst a weakening rupiah.
Minister of Energy and Mineral Resources Bahlil Lahadalia projects that the B50 mandate will entirely eliminate the nation's annual 3 to 4 million kiloliters of imported diesel, yielding IDR 170 trillion (approx. USD $9 billion) in foreign exchange savings.
Table 1 - Import of Diesel into Indonesia:
On the agricultural front, the initiative will increase domestic crude palm oil (CPO) demand to 16.3 – 17.0 million tons per year. The Indonesian Palm Oil Association (Gapki) notes that this domestic absorption will insulate local palm oil farmers from weak export periods and stabilize Fresh Fruit Bunch (TBS) prices. It may also tighten global supplies, boosting international CPO values.
Building on this momentum, Lahadalia said the government aims to launch a mandatory bioethanol blend (10 - 20 percent) by 2027.
However, technical experts urge caution. Tulus Burhanuddin Sitorus, Professor at the Faculty of Engineering, University of North Sumatra (USU), clarified that while technical trials succeeded across six major sectors, real-world commercial engines vary drastically in age, fuel injection technologies, and filter conditions. Consequently, ensuring machine safety requires rigorous, ongoing field monitoring alongside strict fuel quality control and standardized engine upkeep.
Indonesia Tightens Cooking Oil Rules Amid B50 Rollout
The Indonesian government has amended its trade regulations (Minister of Trade Regulation No. 20/2026) to safeguard the domestic supply of packaged cooking oil. This protective policy responds to a sharp surge in CPO demand driven by the mandatory B50 biodiesel program, alongside volatile global export dynamics.
Under the newly added Article 4A, producers are legally obligated to prioritize domestic household needs, regardless of how lucrative international market conditions might be. This mandate explicitly covers all segments of packaged oil: the government-backed Minyakita, premium brands, and second brands.
To enforce compliance during product shortages, the government has introduced escalating penalties under Article 30A. Violators will receive up to three written warnings, each allowing a maximum compliance window of 14 working days. Continued non-compliance empowers authorities to forcibly close warehouses or temporarily suspend business operations until domestic supply duties are met.
While the government is acting preemptively to prevent domestic shortages, sector stakeholders offer varying insights into the actual CPO landscape. Gapki Chairman Eddy Martono maintains that the national CPO production (averaging around 53 million tons annually) remains robust enough to satisfy food, energy, and export needs simultaneously this year. He notes that existing prior-permit export controls are already successfully stabilizing domestic stock.
Meanwhile, Sustainable Oil Palm Smallholders Forum (FORTASBI) warned that El Niño-induced droughts could drastically slash harvest volumes, meaning high global CPO prices might not actually translate into profits for grassroots farmers if they have no fruit to sell.
https://www.indonesia-investments.com/news/todays-headlines/indonesia-s-b50-mandate-driving-energy-independence-tightening-cpo-markets/item9976
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President says B50 biofuel and dams boost national self-reliance
Jakarta (ANTARA) - President Prabowo Subianto said the construction of five dams and Indonesia's implementation of B50 biofuel demonstrate the government's commitment to managing the nation's resources to achieve a more prosperous Indonesia.
In his remarks at the inauguration of the Meninting Dam in West Lombok, West Nusa Tenggara, on Friday, President Prabowo linked the infrastructure projects to the government's efforts in strengthening national energy self-sufficiency.
A day earlier, the Head of State launched the B50 biodiesel implementation, making Indonesia the first country in the world that capable of producing diesel fuel blended with 50-percent palm oil-based biodiesel.
"The five dams we inaugurated today represent a state investment of around Rp9.79 trillion. Yesterday was a very historic day as I launched Indonesia as the first country in the world capable of producing diesel fuel from plant-based sources, namely palm oil," Prabowo said.
According to the President, the implementation of B50 biofuel marks the beginning of Indonesia's efforts to phase out diesel fuel imports.
The policy is projected to save the state budget up to Rp170 trillion (around US$10.4 billion) annually.
Furthermore, Prabowo stated that the successful development of critical infrastructure and the strengthening of national energy self-sufficiency reflect policies designed to serve the interests of the people.
He affirmed that the government would continue to prioritize efficient budget management and strengthen clean governance so that more state resources could be directed toward development.
"What we are striving for is to achieve prosperity for the Indonesian people by reducing, and if possible eliminating, corruption, exercising and improving efficiency. That is our struggle to achieve a prosperous Indonesia," President Prabowo said.
https://en.antaranews.com/amp/news/422157/president-says-b50-biofuel-and-dams-boost-national-self-reliance
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Indonesia’s B50 biodiesel mandate to put pressure on vegoil freight rates through 2027
Vegoil freight rates on key routes surged to record highs in April 2026, following supply disruptions caused by the US—Iran conflict. Although rates have retreated from their peak, mirroring the decline in product tanker earnings amid weaker demand, they remain above pre-conflict levels.
The implementation of Indonesia’s B50 biodiesel mandate is expected to squeeze the country’s palm oil export availability, creating a major headwind for vegoil shipping demand. The anticipated decline in palm oil exports will likely weigh on freight rates for vegoil carriers operating on intra-Asia routes during 2H26. Pressure on the market is expected to persist into 2027 as palm oil exports decline further while the fleet of IMO-class coated tankers continues to expand rapidly.
A narrow palm oil–soybean oil price spread to support the soybean oil trade
Indonesia’s palm oil exports started 2026 on a strong footing but weakened between February and April as palm oil prices moved closer to soybean oil prices. Stagnant production growth and high domestic consumption have reduced the country’s exportable surplus.
Although inventory drawdowns and firm international prices supported exports in May, we expect the price discount of palm oil relative to soybean oil to remain narrow in 2H26. The implementation of the B50 mandate is likely to tighten global palm oil supply, underpinning prices and limiting traditional price advantage of palm oil over competing vegetable oils.
A tight palm oil supply is expected to boost demand for alternative vegetable oils, particularly soybean oil. As a result, soybean oil exports from Latin America to Asia are likely to increase in 2H26, helping to offset some of the weakness in palm oil trade flows. Consequently, freight rates on South America-to-Asia routes are expected to remain relatively high despite a softer outlook for intra-Asian vegoil movements.
Rising biodiesel blending requirements to reduce Indonesia’s palm oil exports
Indonesia introduced palm oil-based biodiesel blending in 2008 under the B2.5 mandate and has steadily increased blending requirements to reduce its reliance on imported diesel fuel. Following the successful implementation of the B40 mandate in January 2025, the government has proceeded with the B50 mandate from 1 July 2026. The move is expected to increase domestic palm oil consumption for biodiesel production by an additional 3.0–3.5 million tonnes annually.
https://www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/indonesias-b50-biodiesel-mandate-to-put-pressure-on-vegoil-freight-rates-through-2027
Inside Indonesia’s B50 Mandate: Driving Energy Independence and Tightening CPO Markets
Indonesian President Prabowo Subianto officially inaugurated Indonesia's mandatory B50 Biodiesel program on Thursday (9 July 2026) in Karawang (West Java), making Indonesia the first country (globally) to enforce a 50 percent biofuel blend. The policy drives a bold ambition: completely halting automotive diesel imports to secure national energy sovereignty.
Indonesia relies heavily on foreign diesel, primarily from Malaysia and Singapore. Together, these two neighbors accounted for 74.3 percent of national automotive diesel imports (valued at USD $2.72 billion in January-May 2026) putting severe pressure on the trade balance, especially amidst a weakening rupiah.
Minister of Energy and Mineral Resources Bahlil Lahadalia projects that the B50 mandate will entirely eliminate the nation's annual 3 to 4 million kiloliters of imported diesel, yielding IDR 170 trillion (approx. USD $9 billion) in foreign exchange savings.
Table 1 - Import of Diesel into Indonesia:
On the agricultural front, the initiative will increase domestic crude palm oil (CPO) demand to 16.3 – 17.0 million tons per year. The Indonesian Palm Oil Association (Gapki) notes that this domestic absorption will insulate local palm oil farmers from weak export periods and stabilize Fresh Fruit Bunch (TBS) prices. It may also tighten global supplies, boosting international CPO values.
Building on this momentum, Lahadalia said the government aims to launch a mandatory bioethanol blend (10 - 20 percent) by 2027.
However, technical experts urge caution. Tulus Burhanuddin Sitorus, Professor at the Faculty of Engineering, University of North Sumatra (USU), clarified that while technical trials succeeded across six major sectors, real-world commercial engines vary drastically in age, fuel injection technologies, and filter conditions. Consequently, ensuring machine safety requires rigorous, ongoing field monitoring alongside strict fuel quality control and standardized engine upkeep.
Indonesia Tightens Cooking Oil Rules Amid B50 Rollout
The Indonesian government has amended its trade regulations (Minister of Trade Regulation No. 20/2026) to safeguard the domestic supply of packaged cooking oil. This protective policy responds to a sharp surge in CPO demand driven by the mandatory B50 biodiesel program, alongside volatile global export dynamics.
Under the newly added Article 4A, producers are legally obligated to prioritize domestic household needs, regardless of how lucrative international market conditions might be. This mandate explicitly covers all segments of packaged oil: the government-backed Minyakita, premium brands, and second brands.
To enforce compliance during product shortages, the government has introduced escalating penalties under Article 30A. Violators will receive up to three written warnings, each allowing a maximum compliance window of 14 working days. Continued non-compliance empowers authorities to forcibly close warehouses or temporarily suspend business operations until domestic supply duties are met.
While the government is acting preemptively to prevent domestic shortages, sector stakeholders offer varying insights into the actual CPO landscape. Gapki Chairman Eddy Martono maintains that the national CPO production (averaging around 53 million tons annually) remains robust enough to satisfy food, energy, and export needs simultaneously this year. He notes that existing prior-permit export controls are already successfully stabilizing domestic stock.
Meanwhile, Sustainable Oil Palm Smallholders Forum (FORTASBI) warned that El Niño-induced droughts could drastically slash harvest volumes, meaning high global CPO prices might not actually translate into profits for grassroots farmers if they have no fruit to sell.
https://www.indonesia-investments.com/news/todays-headlines/indonesia-s-b50-mandate-driving-energy-independence-tightening-cpo-markets/item9976
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President says B50 biofuel and dams boost national self-reliance
Jakarta (ANTARA) - President Prabowo Subianto said the construction of five dams and Indonesia's implementation of B50 biofuel demonstrate the government's commitment to managing the nation's resources to achieve a more prosperous Indonesia.
In his remarks at the inauguration of the Meninting Dam in West Lombok, West Nusa Tenggara, on Friday, President Prabowo linked the infrastructure projects to the government's efforts in strengthening national energy self-sufficiency.
A day earlier, the Head of State launched the B50 biodiesel implementation, making Indonesia the first country in the world that capable of producing diesel fuel blended with 50-percent palm oil-based biodiesel.
"The five dams we inaugurated today represent a state investment of around Rp9.79 trillion. Yesterday was a very historic day as I launched Indonesia as the first country in the world capable of producing diesel fuel from plant-based sources, namely palm oil," Prabowo said.
According to the President, the implementation of B50 biofuel marks the beginning of Indonesia's efforts to phase out diesel fuel imports.
The policy is projected to save the state budget up to Rp170 trillion (around US$10.4 billion) annually.
Furthermore, Prabowo stated that the successful development of critical infrastructure and the strengthening of national energy self-sufficiency reflect policies designed to serve the interests of the people.
He affirmed that the government would continue to prioritize efficient budget management and strengthen clean governance so that more state resources could be directed toward development.
"What we are striving for is to achieve prosperity for the Indonesian people by reducing, and if possible eliminating, corruption, exercising and improving efficiency. That is our struggle to achieve a prosperous Indonesia," President Prabowo said.
https://en.antaranews.com/amp/news/422157/president-says-b50-biofuel-and-dams-boost-national-self-reliance
--------
Indonesia’s B50 biodiesel mandate to put pressure on vegoil freight rates through 2027
Vegoil freight rates on key routes surged to record highs in April 2026, following supply disruptions caused by the US—Iran conflict. Although rates have retreated from their peak, mirroring the decline in product tanker earnings amid weaker demand, they remain above pre-conflict levels.
The implementation of Indonesia’s B50 biodiesel mandate is expected to squeeze the country’s palm oil export availability, creating a major headwind for vegoil shipping demand. The anticipated decline in palm oil exports will likely weigh on freight rates for vegoil carriers operating on intra-Asia routes during 2H26. Pressure on the market is expected to persist into 2027 as palm oil exports decline further while the fleet of IMO-class coated tankers continues to expand rapidly.
A narrow palm oil–soybean oil price spread to support the soybean oil trade
Indonesia’s palm oil exports started 2026 on a strong footing but weakened between February and April as palm oil prices moved closer to soybean oil prices. Stagnant production growth and high domestic consumption have reduced the country’s exportable surplus.
Although inventory drawdowns and firm international prices supported exports in May, we expect the price discount of palm oil relative to soybean oil to remain narrow in 2H26. The implementation of the B50 mandate is likely to tighten global palm oil supply, underpinning prices and limiting traditional price advantage of palm oil over competing vegetable oils.
A tight palm oil supply is expected to boost demand for alternative vegetable oils, particularly soybean oil. As a result, soybean oil exports from Latin America to Asia are likely to increase in 2H26, helping to offset some of the weakness in palm oil trade flows. Consequently, freight rates on South America-to-Asia routes are expected to remain relatively high despite a softer outlook for intra-Asian vegoil movements.
Rising biodiesel blending requirements to reduce Indonesia’s palm oil exports
Indonesia introduced palm oil-based biodiesel blending in 2008 under the B2.5 mandate and has steadily increased blending requirements to reduce its reliance on imported diesel fuel. Following the successful implementation of the B40 mandate in January 2025, the government has proceeded with the B50 mandate from 1 July 2026. The move is expected to increase domestic palm oil consumption for biodiesel production by an additional 3.0–3.5 million tonnes annually.
https://www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/indonesias-b50-biodiesel-mandate-to-put-pressure-on-vegoil-freight-rates-through-2027
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July 10, 2026
Indonesia says B50 biodiesel plan to boost palm oil use, cut fuel imports
By Reuters
KARAWANG, Indonesia, July 9 (Reuters) - Indonesia's mandate to raise the biodiesel blend to 50% palm oil-based fuel from 40% will increase crude palm oil use to between 16.3 million and 17 million metric tons from 15.2 million tons, Energy Minister Bahlil Lahadalia said on Thursday.
The world's largest palm oil producer last week launched its B50 biodiesel programme, although industry participants are still awaiting revised biodiesel allocations from the government.
https://www.reuters.com/business/energy/indonesia-says-b50-biodiesel-plan-boost-palm-oil-use-cut-fuel-imports-2026-07-09/
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Rising oil prices drive Indonesians to embrace biodiesel
By Heru Asprihanto and Johan Purnomo
Summary
Indonesia, the world's biggest palm oil producer and exporter, accelerated testing on fuel under its B50 mandate, a blend of 50% palm-based diesel and 50% conventional diesel, after the U.S.-Israeli war on Iran that started in February sent oil prices surging.
Jakarta began implementing the B50 biofuel mix on July 1.
High global prices have pushed up the price of conventional diesel, which is not subsidised in Indonesia, by as much as 46% this year. In early July, diesel was 21,150 rupiah ($1.17) per litre, more than three times the price of subsidised biodiesel at 6,800 rupiah per litre.
Arnoldus Yusuf, a 58-year-old retiree, said he could no longer afford non-subsidised fuel.
"I thought the price was unreasonable, having tripled, and I am retired, so I couldn't afford it. So we try switching to biodiesel now," Yusuf told Reuters as he waited for mechanics to make adjustments to his 2018 Toyota Fortuner.
https://www.reuters.com/business/energy/rising-oil-prices-drive-indonesians-embrace-biodiesel-2026-07-09/
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Prabowo wants farmers to benefit most from B50 program
Karawang, W Java (ANTARA) - President Prabowo Subianto said on Thursday Indonesia's palm oil farmers must be the biggest beneficiaries of the country's new mandatory B50 biodiesel program, linking the policy to higher incomes and stronger energy security.
Speaking at the launch of the Mandatory B50 Biodiesel program at the KM 57 Rest Area in Karawang, West Java, Prabowo said the initiative marked a milestone in Indonesia's efforts to expand palm oil downstream industries while reducing dependence on imported diesel.
"This is our collective effort. Today is a historic milestone. Our farmers will continue to increase their incomes. We will succeed when our farmers have better lives," Prabowo said.
The president said the B50 program, which blends 50 percent palm-based biodiesel with diesel fuel, would strengthen national energy resilience while generating greater added value from Indonesia's palm oil industry.
He stressed that the government's downstream strategy must ultimately improve farmers' welfare, ensuring they receive the largest economic benefits from the country's vast palm oil resources.
Prabowo said reports from several provinces indicated that farmers' purchasing power had improved, reflecting rising household incomes following government policies.
"I have also received reports from various provinces that our farmers are buying more motorcycles and cars, with purchases increasing by dozens of percent," he said.
The president added that more farmers were now able to perform the Umrah pilgrimage and purchase livestock for Eid al-Adha sacrifices, which he described as further evidence of improving prosperity.
"It means they now have money. This is the purpose of our development. Our people must prosper," Prabowo said.
He said Indonesia should not accept a situation in which its people remain poor despite the country's abundant natural resources.
According to Prabowo, all downstream industrial policies, including palm oil-based biodiesel development, are designed to ensure economic gains are returned to the public, particularly farmers.
"We must not lack confidence. We must never accept that our people should remain poor. We are a wealthy country, and our people must also enjoy that wealth," he said.
Prabowo also thanked researchers, universities, state-owned energy company Pertamina, and other stakeholders for supporting the development of Indonesia's biodiesel industry.
He encouraged scientists and industry players to continue advancing biofuel technology beyond the B50 mandate.
"I thank the scientists from our universities. Continue this research. Thank you, Pertamina, and everyone on your team. Keep going, don't stop at B50. If possible, move on to B60," Prabowo said.
https://en.antaranews.com/amp/news/422076/prabowo-wants-farmers-to-benefit-most-from-b50-program
Indonesia says B50 biodiesel plan to boost palm oil use, cut fuel imports
By Reuters
KARAWANG, Indonesia, July 9 (Reuters) - Indonesia's mandate to raise the biodiesel blend to 50% palm oil-based fuel from 40% will increase crude palm oil use to between 16.3 million and 17 million metric tons from 15.2 million tons, Energy Minister Bahlil Lahadalia said on Thursday.
The world's largest palm oil producer last week launched its B50 biodiesel programme, although industry participants are still awaiting revised biodiesel allocations from the government.
- Bahlil made the remarks at a ceremony in Karawang in West Java province, attended by President Prabowo Subianto.
- The programme, among the largest mandatory biodiesel blending schemes, is designed to reduce Indonesia's reliance on imported diesel fuel.
- Prabowo said Indonesia was leading global efforts to reduce carbon emissions.
- He said he had pushed for a B100 mandate, but ministers had advised him that a 50% palm oil blend was sufficient to eliminate imports. He added that authorities should continue pursuing a 60% blend.
- Bahlil said the government would begin research into a 60% mix.
- Raising the blend to 50% is expected to reduce this year's import bill by 170 trillion rupiah ($9.41 billion), compared with savings of about 133 trillion rupiah in 2025, energy ministry data show.
- Indonesia allocated 15.64 million kilolitres of biodiesel under its B40 programme this year, 4.68% above last year's consumption of 14.94 million kilolitres.
- Indonesia will require 16.7 million to 18 million kilolitres of fatty acid methyl ester (FAME) under the new mandate, an energy ministry official said on Thursday.
- The ministry has yet to issue additional quotas for the B50 programme.
- Businesses will have until the end of September to use up remaining B40 stocks.($1 = 18,070.0000 rupiah)
https://www.reuters.com/business/energy/indonesia-says-b50-biodiesel-plan-boost-palm-oil-use-cut-fuel-imports-2026-07-09/
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Rising oil prices drive Indonesians to embrace biodiesel
By Heru Asprihanto and Johan Purnomo
Summary
- Indonesia rolls out new B50 palm oil fuel blend
- Biofuel prices are subsidised unlike conventional diesel
- Some drivers say conventional fuel has become unaffordable
Indonesia, the world's biggest palm oil producer and exporter, accelerated testing on fuel under its B50 mandate, a blend of 50% palm-based diesel and 50% conventional diesel, after the U.S.-Israeli war on Iran that started in February sent oil prices surging.
Jakarta began implementing the B50 biofuel mix on July 1.
High global prices have pushed up the price of conventional diesel, which is not subsidised in Indonesia, by as much as 46% this year. In early July, diesel was 21,150 rupiah ($1.17) per litre, more than three times the price of subsidised biodiesel at 6,800 rupiah per litre.
Arnoldus Yusuf, a 58-year-old retiree, said he could no longer afford non-subsidised fuel.
"I thought the price was unreasonable, having tripled, and I am retired, so I couldn't afford it. So we try switching to biodiesel now," Yusuf told Reuters as he waited for mechanics to make adjustments to his 2018 Toyota Fortuner.
https://www.reuters.com/business/energy/rising-oil-prices-drive-indonesians-embrace-biodiesel-2026-07-09/
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Prabowo wants farmers to benefit most from B50 program
Karawang, W Java (ANTARA) - President Prabowo Subianto said on Thursday Indonesia's palm oil farmers must be the biggest beneficiaries of the country's new mandatory B50 biodiesel program, linking the policy to higher incomes and stronger energy security.
Speaking at the launch of the Mandatory B50 Biodiesel program at the KM 57 Rest Area in Karawang, West Java, Prabowo said the initiative marked a milestone in Indonesia's efforts to expand palm oil downstream industries while reducing dependence on imported diesel.
"This is our collective effort. Today is a historic milestone. Our farmers will continue to increase their incomes. We will succeed when our farmers have better lives," Prabowo said.
The president said the B50 program, which blends 50 percent palm-based biodiesel with diesel fuel, would strengthen national energy resilience while generating greater added value from Indonesia's palm oil industry.
He stressed that the government's downstream strategy must ultimately improve farmers' welfare, ensuring they receive the largest economic benefits from the country's vast palm oil resources.
Prabowo said reports from several provinces indicated that farmers' purchasing power had improved, reflecting rising household incomes following government policies.
"I have also received reports from various provinces that our farmers are buying more motorcycles and cars, with purchases increasing by dozens of percent," he said.
The president added that more farmers were now able to perform the Umrah pilgrimage and purchase livestock for Eid al-Adha sacrifices, which he described as further evidence of improving prosperity.
"It means they now have money. This is the purpose of our development. Our people must prosper," Prabowo said.
He said Indonesia should not accept a situation in which its people remain poor despite the country's abundant natural resources.
According to Prabowo, all downstream industrial policies, including palm oil-based biodiesel development, are designed to ensure economic gains are returned to the public, particularly farmers.
"We must not lack confidence. We must never accept that our people should remain poor. We are a wealthy country, and our people must also enjoy that wealth," he said.
Prabowo also thanked researchers, universities, state-owned energy company Pertamina, and other stakeholders for supporting the development of Indonesia's biodiesel industry.
He encouraged scientists and industry players to continue advancing biofuel technology beyond the B50 mandate.
"I thank the scientists from our universities. Continue this research. Thank you, Pertamina, and everyone on your team. Keep going, don't stop at B50. If possible, move on to B60," Prabowo said.
https://en.antaranews.com/amp/news/422076/prabowo-wants-farmers-to-benefit-most-from-b50-program
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July 09, 2026
European Parliament rejects proposal to classify soybean oil as high ILUC risk
The European Parliament on July 8 voted to reject a proposed European Union regulation that would have phased out the use of soybean oil as a biofuel feedstock in the EU by 2030. Representatives of the EU’s biobased diesel industry applauded the decision.
The EU Renewable Energy Directive II introduced specific rules for high-risk ILUC biofuels. Under current rules, the Commission defines high ILUC-risk feedstock as feedstock for which the share of expansion into land with high-carbon stocks is higher than 10% since 2008, with an annual expansion of more than 1%. Only palm oil qualifies as a high ILUC-risk feedstock under that calculation.
A delegated regulation adopted by the European Commission on April 10 proposed to amend the methodology by which high-risk ILUC feedstocks are measured. It also proposed to use 2014 data, as opposed to the current 2008 data. Under the proposed calculations, both palm oil and soybean would surpass the threshold for high ILUC-risk feedstocks, according to a report filed by the USDA Foreign Agricultural Service’s Global Agricultural Information Network in April.
https://biomassmagazine.com/articles/european-parliament-rejects-proposal-to-classify-soybean-oil-as-high-iluc-risk
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European Parliament Blocks Move to Strip Soybeans of Renewable Status
The European Parliament blocked a move to strip soy-based biofuels of their renewable status, which would have phased out their contribution to European Union renewable energy targets by 2030.
(Bloomberg) — The European Parliament blocked a move to strip soy-based biofuels of their renewable status, which would have phased out their contribution to European Union renewable energy targets by 2030.
EU lawmakers objected to the methodology employed by the European Commission, the bloc’s executive arm, arguing it doesn’t take into account that EU-grown soy doesn’t drive deforestation. They also said the move would clash with the objectives of the EU’s protein plan to make the bloc more self-sufficient in such crops.
The European Commission had proposed linking soy to a high risk of what it calls indirect land-use change, when exploiting existing farmland to grow the oilseed for biofuels leads to deforestation to produce food and feed crops elsewhere. A World Trade Organization panel largely sided with the EU in a case brought by Malaysia over the bloc’s classification of palm oil as posing such a risk, though it did also find some deficiencies in the bloc’s application of the rules.
The European lawmakers said they did not object to palm oil being given a high ILUC risk status.
The parliament called on the Commission to resubmit an updated proposal on the issue with changes to the methodology.
The Union for the Promotion of Oil and Protein Plants welcomed the parliament vote, calling it “absurd” to “encourage European soybean cultivation to strengthen the bloc’s protein resilience” and designate soybeans as an ILUC feedstock, “thereby stripping away a key element of their value chain.”
The proposal would have discounted soybean oil obtained during soybean meal production from national biofuel blending mandates, the German agricultural industry association and lobby group said in a statement. That would also have impacted transport-sector climate targets.
A European Commission spokesperson had no immediate comment.
https://financialpost.com/pmn/business-pmn/european-parliament-blocks-move-to-strip-soybeans-of-renewable-status
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EU Parliament Biofuels Blunder Could Expose EU To Over $5.6 Billion A Year In Sanctions
MEPs have voted to reject an EU regulation that would have seen soy biofuels no longer count as a renewable fuel by 2030.
Members of the European Parliament have voted to reject an EU regulation that would have seen soy biofuels no longer count as a renewable fuel by 2030. Soy bean cultivation is one of the world’s leading causes of deforestation and land clearance, says T&E.
The decision to reverse the regulation could now see the EU liable for over $5.6 billion a year in retaliation penalties from Indonesia and Malaysia for failing to meet a legal obligation to update its laws regarding deforestation-risk biofuels, according to a letter sent to MEPs from Energy Commissioner Dan Jorgensen.\
The EU previously won a WTO trade dispute against Indonesia and Malaysia that allowed the EU to keep a phase out of palm oil biofuels – of which Indonesia and Malaysia are the world’s biggest producers – provided it took a scientific and consistent approach to what it considers high deforestation risk feedstocks. This condition will now not be met as a result of today’s vote, leaving the EU open to litigative action from these palm oil powerhouses.
Cian Delaney, biofuels campaigner at T&E, said: “This decision comes after relentless, targeted lobbying from the bioenergy and agriculture industries, so they can continue to use deforestation-driving soy to make biofuels. Soy is one of the world’s leading causes of deforestation and land clearance. Considering it as a sustainable alternative to fossil fuel is a gross underestimation of the impact its cultivation has on the environment, climate and food security.”
According to T&E research, land dedicated to soy cultivation in Brazil now exceeds most European countries, which has devastating effects on the Amazon rainforest and the Cerrado savannah.
https://cleantechnica.com/2026/07/08/eu-parliament-biofuels-blunder-could-expose-eu-to-over-5-6-billion-a-year-in-sanctions/
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EU Parliament biofuels blunder could expose EU to billions a year in sanctions
MEPs have voted to reject an EU regulation that would have seen soy biofuels no longer count as a renewable fuel by 2030.
Soybean cultivation is one of the world’s leading causes of deforestation and land clearance, says T&E.
The decision to reverse the regulation could now see the EU liable for retaliation penalties from Indonesia and Malaysia for failing to meet a legal obligation to update its laws regarding deforestation-risk biofuels, according to a letter sent to MEPs from Energy Commissioner Dan Jorgensen.
The EU previously won a WTO trade dispute against Indonesia and Malaysia that allowed the EU to keep a phase out of palm oil biofuels - of which Indonesia and Malaysia are the world’s biggest producers - provided it took a scientific and consistent approach to what it considers high deforestation risk feedstocks. This condition will now not be met as a result of today’s vote, leaving the EU open to litigative action from these palm oil powerhouses.
Cian Delaney, biofuels campaigner at T&E, said: “This decision comes after relentless, targeted lobbying from the bioenergy and agriculture industries, so they can continue to use deforestation-driving soy to make biofuels. Soy is one of the world’s leading causes of deforestation and land clearance. Considering it as a sustainable alternative to fossil fuel is a gross underestimation of the impact its cultivation has on the environment, climate and food security.”
According to T&E research, land dedicated to soy cultivation in Brazil now exceeds most European countries, which has devastating effects on the Amazon rainforest and the Cerrado savannah.
https://biofuels-news.com/news/eu-parliament-biofuels-blunder-could-expose-eu-to-billions-a-year-in-sanctions/
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B50 program could cut Indonesia’s palm oil exports by nearly 4 mln tons per year
Indonesia’s B50 biodiesel program, which increases the mandatory palm oil content in biodiesel to 50%, could reduce the country’s crude palm oil (CPO) exports and lower export revenue by about $2.7 billion annually. At the same time, the government expects the policy to reduce dependence on imported diesel fuel.
The phased rollout of the B50 mandate began on July 1 following an eight-month trial period. According to the Indonesian Palm Oil Association (Gapki), the program will divert around 2 mln tons of CPO from export markets in the second half of 2026. On an annual basis, additional domestic demand could reach nearly 4 mln tons.
Gapki estimates that, based on the average CIF Rotterdam palm oil price of $1,356/t in the first quarter of 2026, redirecting 2 mln tons of CPO from exports would reduce export earnings by approximately $2.7 billion.
Economists say the program will be beneficial only if savings from lower diesel imports consistently exceed the loss of palm oil export revenue, biodiesel subsidy costs, and the risk of higher domestic cooking oil prices. The issue has become more significant after Indonesia recorded its first monthly trade deficit in six years in May.
Analysts recommend introducing a more flexible blending policy that adjusts biodiesel requirements according to domestic CPO inventories, palm oil prices, cooking oil prices, and the country’s trade balance. They believe such an approach would help strengthen Indonesia’s energy security while limiting risks to exports and the domestic food market.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
https://ukragroconsult.com/en/news/b50-program-could-cut-indonesias-palm-oil-exports-by-nearly-4-mln-tons-per-year/
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Indonesia's B50 Biodiesel Program Could Cut Palm Oil Exports by $2.7 Billion
Jakarta. Indonesia's rollout of its B50 biodiesel program is expected to reduce the country's dependence on imported diesel fuel, but it could also trim palm oil export revenue by about $2.7 billion a year by diverting more crude palm oil (CPO) to domestic energy production.
The mandatory fuel blend, which raises the palm oil content in biodiesel to 50%, began phased implementation on July 1 following an eight-month trial period.
According to estimates from the Indonesian Palm Oil Association (Gapki), the policy could reduce CPO exports by about 2 million metric tons in the second half of the year as additional supplies are absorbed by the biodiesel program.
If implemented for a full year, the additional domestic CPO requirement could approach 4 million metric tons, according to the industry group's estimates.
Based on the average CIF Rotterdam palm oil price of approximately $1,356 per metric ton during January-March 2026, diverting 2 million metric tons from export markets would represent forgone export revenue of roughly $2.7 billion.
Economist Achmad Nur Hidayat of UPN Veteran Jakarta said on Tuesday that the policy should be evaluated carefully as Indonesia's trade balance weakens. The country recorded a $1.6 billion monthly trade deficit in May, ending a six-year streak of monthly trade surpluses.
He also noted that palm oil is a strategically important commodity because it is the primary raw material for cooking oil consumed by most Indonesian households.
According to Achmad, the B50 program will improve Indonesia's external balance only if savings from lower diesel imports consistently exceed the loss of palm oil export earnings, biodiesel subsidy costs, and the risk of higher domestic cooking oil prices.
“The objective of the B50 program is understandable because Indonesia has long been vulnerable to diesel imports,” he said. “When global oil prices rise, pressure on the state budget increases, the oil and gas trade deficit widens, and energy subsidies become more expensive.”
https://jakartaglobe.id/business/indonesias-b50-biodiesel-program-could-cut-palm-oil-exports-by-27-billion
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RSPO Member First Resources fails to act as clearing and evictions re-start in Indigenous lands in Borneo
A long-running land dispute in Indonesia’s East Kalimantan province – dubbed Indonesia’s highest profile land conflict – has erupted again, spurring calls for renewed scrutiny on First Resources, a major palm oil producer and member of the Roundtable on Sustainable Palm Oil (RSPO), over breaches of sustainability commitments.
On 18 June 18, the Indigenous Dayak Benuaq community of Muara Tae alleged that PT Borneosurya Mining Jaya (BSMJ) – a First Resources subsidiary – carried out new evictions and land-clearing operations in its customary territory, prompting villagers to form human barricades to defend their land, as reported by our Indonesian partner Kaoem Telapak.
The company previously halted clearing in 2012 after community action and complaints. Community leaders warn that without urgent intervention they now risk losing the last remaining forest in their customary territory.
First Resources is part of the RSPO – the most well-known certification scheme for palm oil, intended to assure consumers that palm oil production does not cause environmental or social harms – with the company supplying palm oil into global markets.
The RSPO’s rules require members to respect Indigenous land rights and secure Free, Prior and Informed Consent (FPIC) before development. The company also has its own policies which commit it to respecting customary rights and resolving disputes through a transparent, consultative processes.
However, community members on the ground report a starkly different reality.
Local residents allege that evictions and land-clearing are continuing in their territory, describing daily activity and the use of heavy equipment, sometimes under police escort.
https://eia-international.org/news/palm-oil-firm-fails-to-act-as-clearing-and-evictions-re-start-in-indigenous-lands-in-borneo/
European Parliament rejects proposal to classify soybean oil as high ILUC risk
The European Parliament on July 8 voted to reject a proposed European Union regulation that would have phased out the use of soybean oil as a biofuel feedstock in the EU by 2030. Representatives of the EU’s biobased diesel industry applauded the decision.
The EU Renewable Energy Directive II introduced specific rules for high-risk ILUC biofuels. Under current rules, the Commission defines high ILUC-risk feedstock as feedstock for which the share of expansion into land with high-carbon stocks is higher than 10% since 2008, with an annual expansion of more than 1%. Only palm oil qualifies as a high ILUC-risk feedstock under that calculation.
A delegated regulation adopted by the European Commission on April 10 proposed to amend the methodology by which high-risk ILUC feedstocks are measured. It also proposed to use 2014 data, as opposed to the current 2008 data. Under the proposed calculations, both palm oil and soybean would surpass the threshold for high ILUC-risk feedstocks, according to a report filed by the USDA Foreign Agricultural Service’s Global Agricultural Information Network in April.
https://biomassmagazine.com/articles/european-parliament-rejects-proposal-to-classify-soybean-oil-as-high-iluc-risk
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European Parliament Blocks Move to Strip Soybeans of Renewable Status
The European Parliament blocked a move to strip soy-based biofuels of their renewable status, which would have phased out their contribution to European Union renewable energy targets by 2030.
(Bloomberg) — The European Parliament blocked a move to strip soy-based biofuels of their renewable status, which would have phased out their contribution to European Union renewable energy targets by 2030.
EU lawmakers objected to the methodology employed by the European Commission, the bloc’s executive arm, arguing it doesn’t take into account that EU-grown soy doesn’t drive deforestation. They also said the move would clash with the objectives of the EU’s protein plan to make the bloc more self-sufficient in such crops.
The European Commission had proposed linking soy to a high risk of what it calls indirect land-use change, when exploiting existing farmland to grow the oilseed for biofuels leads to deforestation to produce food and feed crops elsewhere. A World Trade Organization panel largely sided with the EU in a case brought by Malaysia over the bloc’s classification of palm oil as posing such a risk, though it did also find some deficiencies in the bloc’s application of the rules.
The European lawmakers said they did not object to palm oil being given a high ILUC risk status.
The parliament called on the Commission to resubmit an updated proposal on the issue with changes to the methodology.
The Union for the Promotion of Oil and Protein Plants welcomed the parliament vote, calling it “absurd” to “encourage European soybean cultivation to strengthen the bloc’s protein resilience” and designate soybeans as an ILUC feedstock, “thereby stripping away a key element of their value chain.”
The proposal would have discounted soybean oil obtained during soybean meal production from national biofuel blending mandates, the German agricultural industry association and lobby group said in a statement. That would also have impacted transport-sector climate targets.
A European Commission spokesperson had no immediate comment.
https://financialpost.com/pmn/business-pmn/european-parliament-blocks-move-to-strip-soybeans-of-renewable-status
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EU Parliament Biofuels Blunder Could Expose EU To Over $5.6 Billion A Year In Sanctions
MEPs have voted to reject an EU regulation that would have seen soy biofuels no longer count as a renewable fuel by 2030.
Members of the European Parliament have voted to reject an EU regulation that would have seen soy biofuels no longer count as a renewable fuel by 2030. Soy bean cultivation is one of the world’s leading causes of deforestation and land clearance, says T&E.
The decision to reverse the regulation could now see the EU liable for over $5.6 billion a year in retaliation penalties from Indonesia and Malaysia for failing to meet a legal obligation to update its laws regarding deforestation-risk biofuels, according to a letter sent to MEPs from Energy Commissioner Dan Jorgensen.\
The EU previously won a WTO trade dispute against Indonesia and Malaysia that allowed the EU to keep a phase out of palm oil biofuels – of which Indonesia and Malaysia are the world’s biggest producers – provided it took a scientific and consistent approach to what it considers high deforestation risk feedstocks. This condition will now not be met as a result of today’s vote, leaving the EU open to litigative action from these palm oil powerhouses.
Cian Delaney, biofuels campaigner at T&E, said: “This decision comes after relentless, targeted lobbying from the bioenergy and agriculture industries, so they can continue to use deforestation-driving soy to make biofuels. Soy is one of the world’s leading causes of deforestation and land clearance. Considering it as a sustainable alternative to fossil fuel is a gross underestimation of the impact its cultivation has on the environment, climate and food security.”
According to T&E research, land dedicated to soy cultivation in Brazil now exceeds most European countries, which has devastating effects on the Amazon rainforest and the Cerrado savannah.
https://cleantechnica.com/2026/07/08/eu-parliament-biofuels-blunder-could-expose-eu-to-over-5-6-billion-a-year-in-sanctions/
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EU Parliament biofuels blunder could expose EU to billions a year in sanctions
MEPs have voted to reject an EU regulation that would have seen soy biofuels no longer count as a renewable fuel by 2030.
Soybean cultivation is one of the world’s leading causes of deforestation and land clearance, says T&E.
The decision to reverse the regulation could now see the EU liable for retaliation penalties from Indonesia and Malaysia for failing to meet a legal obligation to update its laws regarding deforestation-risk biofuels, according to a letter sent to MEPs from Energy Commissioner Dan Jorgensen.
The EU previously won a WTO trade dispute against Indonesia and Malaysia that allowed the EU to keep a phase out of palm oil biofuels - of which Indonesia and Malaysia are the world’s biggest producers - provided it took a scientific and consistent approach to what it considers high deforestation risk feedstocks. This condition will now not be met as a result of today’s vote, leaving the EU open to litigative action from these palm oil powerhouses.
Cian Delaney, biofuels campaigner at T&E, said: “This decision comes after relentless, targeted lobbying from the bioenergy and agriculture industries, so they can continue to use deforestation-driving soy to make biofuels. Soy is one of the world’s leading causes of deforestation and land clearance. Considering it as a sustainable alternative to fossil fuel is a gross underestimation of the impact its cultivation has on the environment, climate and food security.”
According to T&E research, land dedicated to soy cultivation in Brazil now exceeds most European countries, which has devastating effects on the Amazon rainforest and the Cerrado savannah.
https://biofuels-news.com/news/eu-parliament-biofuels-blunder-could-expose-eu-to-billions-a-year-in-sanctions/
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B50 program could cut Indonesia’s palm oil exports by nearly 4 mln tons per year
Indonesia’s B50 biodiesel program, which increases the mandatory palm oil content in biodiesel to 50%, could reduce the country’s crude palm oil (CPO) exports and lower export revenue by about $2.7 billion annually. At the same time, the government expects the policy to reduce dependence on imported diesel fuel.
The phased rollout of the B50 mandate began on July 1 following an eight-month trial period. According to the Indonesian Palm Oil Association (Gapki), the program will divert around 2 mln tons of CPO from export markets in the second half of 2026. On an annual basis, additional domestic demand could reach nearly 4 mln tons.
Gapki estimates that, based on the average CIF Rotterdam palm oil price of $1,356/t in the first quarter of 2026, redirecting 2 mln tons of CPO from exports would reduce export earnings by approximately $2.7 billion.
Economists say the program will be beneficial only if savings from lower diesel imports consistently exceed the loss of palm oil export revenue, biodiesel subsidy costs, and the risk of higher domestic cooking oil prices. The issue has become more significant after Indonesia recorded its first monthly trade deficit in six years in May.
Analysts recommend introducing a more flexible blending policy that adjusts biodiesel requirements according to domestic CPO inventories, palm oil prices, cooking oil prices, and the country’s trade balance. They believe such an approach would help strengthen Indonesia’s energy security while limiting risks to exports and the domestic food market.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
https://ukragroconsult.com/en/news/b50-program-could-cut-indonesias-palm-oil-exports-by-nearly-4-mln-tons-per-year/
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Indonesia's B50 Biodiesel Program Could Cut Palm Oil Exports by $2.7 Billion
Jakarta. Indonesia's rollout of its B50 biodiesel program is expected to reduce the country's dependence on imported diesel fuel, but it could also trim palm oil export revenue by about $2.7 billion a year by diverting more crude palm oil (CPO) to domestic energy production.
The mandatory fuel blend, which raises the palm oil content in biodiesel to 50%, began phased implementation on July 1 following an eight-month trial period.
According to estimates from the Indonesian Palm Oil Association (Gapki), the policy could reduce CPO exports by about 2 million metric tons in the second half of the year as additional supplies are absorbed by the biodiesel program.
If implemented for a full year, the additional domestic CPO requirement could approach 4 million metric tons, according to the industry group's estimates.
Based on the average CIF Rotterdam palm oil price of approximately $1,356 per metric ton during January-March 2026, diverting 2 million metric tons from export markets would represent forgone export revenue of roughly $2.7 billion.
Economist Achmad Nur Hidayat of UPN Veteran Jakarta said on Tuesday that the policy should be evaluated carefully as Indonesia's trade balance weakens. The country recorded a $1.6 billion monthly trade deficit in May, ending a six-year streak of monthly trade surpluses.
He also noted that palm oil is a strategically important commodity because it is the primary raw material for cooking oil consumed by most Indonesian households.
According to Achmad, the B50 program will improve Indonesia's external balance only if savings from lower diesel imports consistently exceed the loss of palm oil export earnings, biodiesel subsidy costs, and the risk of higher domestic cooking oil prices.
“The objective of the B50 program is understandable because Indonesia has long been vulnerable to diesel imports,” he said. “When global oil prices rise, pressure on the state budget increases, the oil and gas trade deficit widens, and energy subsidies become more expensive.”
https://jakartaglobe.id/business/indonesias-b50-biodiesel-program-could-cut-palm-oil-exports-by-27-billion
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RSPO Member First Resources fails to act as clearing and evictions re-start in Indigenous lands in Borneo
A long-running land dispute in Indonesia’s East Kalimantan province – dubbed Indonesia’s highest profile land conflict – has erupted again, spurring calls for renewed scrutiny on First Resources, a major palm oil producer and member of the Roundtable on Sustainable Palm Oil (RSPO), over breaches of sustainability commitments.
On 18 June 18, the Indigenous Dayak Benuaq community of Muara Tae alleged that PT Borneosurya Mining Jaya (BSMJ) – a First Resources subsidiary – carried out new evictions and land-clearing operations in its customary territory, prompting villagers to form human barricades to defend their land, as reported by our Indonesian partner Kaoem Telapak.
The company previously halted clearing in 2012 after community action and complaints. Community leaders warn that without urgent intervention they now risk losing the last remaining forest in their customary territory.
First Resources is part of the RSPO – the most well-known certification scheme for palm oil, intended to assure consumers that palm oil production does not cause environmental or social harms – with the company supplying palm oil into global markets.
The RSPO’s rules require members to respect Indigenous land rights and secure Free, Prior and Informed Consent (FPIC) before development. The company also has its own policies which commit it to respecting customary rights and resolving disputes through a transparent, consultative processes.
However, community members on the ground report a starkly different reality.
Local residents allege that evictions and land-clearing are continuing in their territory, describing daily activity and the use of heavy equipment, sometimes under police escort.
https://eia-international.org/news/palm-oil-firm-fails-to-act-as-clearing-and-evictions-re-start-in-indigenous-lands-in-borneo/
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July 06, 2026
Turkish Firm Invests $130 Million in Sei Mangkei SEZ
Jakarta. Turkish manufacturer Evyap Sabun Indonesia has invested about $130 million in a palm oil-based chemicals production facility at Indonesia's Sei Mangkei Special Economic Zone (SEZ), underscoring the growing appeal of the country's industrial estates for export-oriented manufacturing.
The facility, which officially began operations earlier this week, marks one of the latest foreign investments in Sei Mangkei, an industrial hub specializing in downstream palm oil processing in Simalungun Regency, North Sumatra.
Rizal Edwin Manansang, secretary-general of the National Council for Special Economic Zones, said the project demonstrates the success of the government's strategy to develop competitive industrial ecosystems through cooperation between the central and regional governments, SEZ operators, and private investors.
He noted that foreign direct investment now accounts for about 73% of total investment across Indonesia's special economic zones, reflecting growing international confidence in the country's SEZ program as a platform for export-oriented manufacturing.
Since its establishment in 2012, Sei Mangkei SEZ has attracted Rp 31.8 trillion (about $1.8 billion) in cumulative investment through the first quarter of 2026 and created 14,689 jobs, according to Rizal.
Located near the strategic Strait of Malacca shipping lane, the zone offers manufacturers efficient access to major international markets across East Asia, South Asia, the Middle East, Europe, and Africa.
Evyap's parent company, Life Chemistry Evyap, supplies more than 600 customers in 55 countries. Construction of the Sei Mangkei facility began in March 2023, and after roughly three years of development, the plant is now producing a range of oleochemical products, including fatty acids, glycerin, soap noodles, and finished consumer products for global markets.
The complex comprises three production units with a combined annual capacity of 650,000 metric tons, Rizal said.
Sei Mangkei has emerged as one of Indonesia's flagship industrial zones, offering an integrated palm oil industrial cluster, strong logistics connectivity, investment incentives, and environmentally oriented infrastructure supported by biomass and biogas energy.
Saw Lee Chyan, chief executive of Life Chemistry Evyap, said the company chose Sei Mangkei because the SEZ's integrated services enabled the project to be completed more quickly than would have been possible elsewhere.
“The integrated one-stop services provided by Sei Mangkei significantly accelerated the development of our production facilities and allowed operations to commence sooner than at other locations,” Saw said in a statement.
https://jakartaglobe.id/business/turkish-firm-invests-130-million-in-sei-mangkei-sez
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Sri Trang Invests THB 60M in Palm Oil Pilot Across 5 Provinces, Targeting 2029 First Harvest
Sri Trang Agro-Industry Public Company Limited (STA), The world’s largest fully integrated natural rubber enterprise and Thailand’s leading rubber glove manufacturer, led by its subsidiary Sri Trang Rubber and Plantation Company Limited, continues to diversify its business portfolio and strengthen its long-term resilience by announcing the launch of the “Sri Trang Palm Growing a Sustainable Future” project. With an investment of more than THB 60 million, the project will pilot the planting of oil palm on 1,461 rai of land in 5 strategic provinces. The Group is leveraging its Asset Optimization strategy combined with modern agricultural technologies and guided by its ESG principles. Harvesting is expected to begin by 2029.
This expansion into the palm oil business marks another significant step in strengthening Sri Trang Group’s business capabilities, enhancing the resilience of its portfolio, and laying the foundation for long-term sustainable growth. It aims to leverage existing resources, strong operational networks, and new business opportunities while prioritizing community, social, and environmental responsibility. This pilot project covers planting areas in Chonburi, Rayong, Sa Kaeo, Surat Thani, and Songkhla provinces, totaling 28,072 trees.
Mr. Veerasith Sinchareonkul, Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited, shared his vision for this project, stating, “The ‘Sri Trang Palm Growing a Sustainable Future’ project reflects the Group’s commitment to leveraging organizational potential and optimizing the use of the Group’s resources, based on the Asset Optimization concept. This involves developing the Group’s land to create long-term added value while growing responsibly alongside our communities and creating lasting value for society and the environment.
https://www.bangkokpost.com/thailand/pr/3281772/sri-trang-invests-thb-60m-in-palm-oil-pilot-across-5-provinces-targeting-2029-first-harvest. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
Turkish Firm Invests $130 Million in Sei Mangkei SEZ
Jakarta. Turkish manufacturer Evyap Sabun Indonesia has invested about $130 million in a palm oil-based chemicals production facility at Indonesia's Sei Mangkei Special Economic Zone (SEZ), underscoring the growing appeal of the country's industrial estates for export-oriented manufacturing.
The facility, which officially began operations earlier this week, marks one of the latest foreign investments in Sei Mangkei, an industrial hub specializing in downstream palm oil processing in Simalungun Regency, North Sumatra.
Rizal Edwin Manansang, secretary-general of the National Council for Special Economic Zones, said the project demonstrates the success of the government's strategy to develop competitive industrial ecosystems through cooperation between the central and regional governments, SEZ operators, and private investors.
He noted that foreign direct investment now accounts for about 73% of total investment across Indonesia's special economic zones, reflecting growing international confidence in the country's SEZ program as a platform for export-oriented manufacturing.
Since its establishment in 2012, Sei Mangkei SEZ has attracted Rp 31.8 trillion (about $1.8 billion) in cumulative investment through the first quarter of 2026 and created 14,689 jobs, according to Rizal.
Located near the strategic Strait of Malacca shipping lane, the zone offers manufacturers efficient access to major international markets across East Asia, South Asia, the Middle East, Europe, and Africa.
Evyap's parent company, Life Chemistry Evyap, supplies more than 600 customers in 55 countries. Construction of the Sei Mangkei facility began in March 2023, and after roughly three years of development, the plant is now producing a range of oleochemical products, including fatty acids, glycerin, soap noodles, and finished consumer products for global markets.
The complex comprises three production units with a combined annual capacity of 650,000 metric tons, Rizal said.
Sei Mangkei has emerged as one of Indonesia's flagship industrial zones, offering an integrated palm oil industrial cluster, strong logistics connectivity, investment incentives, and environmentally oriented infrastructure supported by biomass and biogas energy.
Saw Lee Chyan, chief executive of Life Chemistry Evyap, said the company chose Sei Mangkei because the SEZ's integrated services enabled the project to be completed more quickly than would have been possible elsewhere.
“The integrated one-stop services provided by Sei Mangkei significantly accelerated the development of our production facilities and allowed operations to commence sooner than at other locations,” Saw said in a statement.
https://jakartaglobe.id/business/turkish-firm-invests-130-million-in-sei-mangkei-sez
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Sri Trang Invests THB 60M in Palm Oil Pilot Across 5 Provinces, Targeting 2029 First Harvest
Sri Trang Agro-Industry Public Company Limited (STA), The world’s largest fully integrated natural rubber enterprise and Thailand’s leading rubber glove manufacturer, led by its subsidiary Sri Trang Rubber and Plantation Company Limited, continues to diversify its business portfolio and strengthen its long-term resilience by announcing the launch of the “Sri Trang Palm Growing a Sustainable Future” project. With an investment of more than THB 60 million, the project will pilot the planting of oil palm on 1,461 rai of land in 5 strategic provinces. The Group is leveraging its Asset Optimization strategy combined with modern agricultural technologies and guided by its ESG principles. Harvesting is expected to begin by 2029.
This expansion into the palm oil business marks another significant step in strengthening Sri Trang Group’s business capabilities, enhancing the resilience of its portfolio, and laying the foundation for long-term sustainable growth. It aims to leverage existing resources, strong operational networks, and new business opportunities while prioritizing community, social, and environmental responsibility. This pilot project covers planting areas in Chonburi, Rayong, Sa Kaeo, Surat Thani, and Songkhla provinces, totaling 28,072 trees.
Mr. Veerasith Sinchareonkul, Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited, shared his vision for this project, stating, “The ‘Sri Trang Palm Growing a Sustainable Future’ project reflects the Group’s commitment to leveraging organizational potential and optimizing the use of the Group’s resources, based on the Asset Optimization concept. This involves developing the Group’s land to create long-term added value while growing responsibly alongside our communities and creating lasting value for society and the environment.
https://www.bangkokpost.com/thailand/pr/3281772/sri-trang-invests-thb-60m-in-palm-oil-pilot-across-5-provinces-targeting-2029-first-harvest. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
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July 04, 2026
Asia Bets on Biofuels to Dodge Middle East Oil Shortages
By Felicity Bradstock - Jul 04, 2026, 12:00 PM CDT
Biofuels are produced by heating biomass feedstocks (plant materials) rapidly at high temperatures (500°C-700°C) in an oxygen-free environment or by using gasification, hydrothermal liquefaction, or low-temperature deconstruction. Ethanol and biodiesel are the two most widely used biofuels, although other feedstocks can be used to produce alternative biofuels. Typical feedstocks include sugar cane, corn, and soybeans, most of which produce low-carbon fuels that can be used in existing engines.
In 2024, the International Energy Agency (IEA) said it expected the use of biofuels to increase significantly by 2030, with a much larger proportion of these fuels produced from waste, residues, and non-food crops, thereby making them more sustainable. The demand for biofuel rose to 4.3 exajoules (EJ) in 2022, thereby surpassing pre-pandemic levels. The IEA suggested that to meet net-zero emissions targets by 2050, global biofuel production would need to increase to 10 EJ by 2030.
By the end of 2024, there were 43 projects expected to be operational by 2030, according to Rystad Energy, with oil and gas firms such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Shell all committing to biofuel production. Many of these projects focused on sustainable aviation fuel (SAF) production, as governments worldwide put increasing pressure on the aviation industry to decarbonise. However, by 2025, interest in biofuels had begun to wane.In late 2025, the OECD said it expected global biofuel use to increase by 0.9 per cent per year over the coming decade, which was much lower than the 3.3 per cent annual growth seen in previous years. The OECD anticipated that biofuel growth would slow in high-income countries due to stagnating fuel demand resulting from electric vehicle adoption and weaker policy support, although continued demand growth in middle-income countries was expected to offset the slowdown.
In 2026, interest in biofuels is reviving, driven by the significant price volatility of fossil fuels. The U.S.-Israeli war on Iran and the resulting closure of the Strait of Hormuz, a key energy trade corridor, have led to energy shortages and driven oil prices sharply higher in recent months, prompting many governments and energy companies to consider investing in alternative fuel production to counter the shortages.
https://oilprice.com/Alternative-Energy/Biofuels/Asia-Bets-on-Biofuels-to-Dodge-Middle-East-Oil-Shortages.html
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India Keeps Eye on Indonesia’s Tight State Control over Palm Oil Exports
Jakarta. An Indian diplomat admitted Friday that his country’s food security relies on Indonesia’s palm oil, as New Delhi intends to keep a close watch over Jakarta’s new trade regime to prevent it from disrupting supplies.
President Prabowo Subianto’s decision to have a single state-run agency oversee the entire palm oil export has kept everyone on their toes. Countries across the globe are largely dependent on Indonesian palm oil, meaning that shifts in export controls are expected to affect commodity flows. Officials from some palm oil-importing nations have revealed their countries’ stance on Jakarta’s trade shake-up, the latest being Indian Ambassador Sandeep Chakravorty.
“We are one of the largest purchasers of palm oil. I believe [the export centralization] is still a work in progress. We don’t have certainty on how those exports will be centralized, but we will watch out for the developments,” Chakravorty told a news conference in Jakarta.
“At the moment, we don’t have concerns that are out of the ordinary. We will be watching the space.”
Jakarta. An Indian diplomat admitted Friday that his country’s food security relies on Indonesia’s palm oil, as New Delhi intends to keep a close watch over Jakarta’s new trade regime to prevent it from disrupting supplies.
President Prabowo Subianto’s decision to have a single state-run agency oversee the entire palm oil export has kept everyone on their toes. Countries across the globe are largely dependent on Indonesian palm oil, meaning that shifts in export controls are expected to affect commodity flows. Officials from some palm oil-importing nations have revealed their countries’ stance on Jakarta’s trade shake-up, the latest being Indian Ambassador Sandeep Chakravorty.
“We are one of the largest purchasers of palm oil. I believe [the export centralization] is still a work in progress. We don’t have certainty on how those exports will be centralized, but we will watch out for the developments,” Chakravorty told a news conference in Jakarta.
“At the moment, we don’t have concerns that are out of the ordinary. We will be watching the space.”
https://jakartaglobe.id/business/india-keeps-eye-on-indonesias-tight-state-control-over-palm-oil-exports
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Modi’s biofuel push comes under pressure as India’s motorists protest
Complaints include weaker fuel efficiency, higher maintenance costs and engine corrosion
INDIAN motorists will gather in New Delhi on Sunday (Jul 5), in the first major protest against a flagship biofuel programme intended to reduce crude imports and support farm incomes.
The government’s accelerated shift to petrol with a higher percentage of ethanol – a signature self-reliance policy for Prime Minister Narendra Modi – has angered drivers, whose complaints include weaker fuel efficiency, higher maintenance costs and engine corrosion.
The government and automakers have been on the defensive after weeks of complaints on social media. Authorities sought to contain the controversy by convening a media briefing with auto industry executives on Saturday. Carmakers dismissed the complaints as unfounded.
“We are very confident that we haven’t seen any glaring issues on social media that warrant a rethink of the government’s biofuel blending programme,” said Puneet Anand, associate vice-president at Hyundai Motor India.
Speaking separately in Rajasthan, Oil Minister Hardeep Singh Puri blamed vested interests of spreading misinformation.
The backlash comes as Modi seeks to expand one of his signature energy initiatives. India met its target of blending 20 per cent ethanol into petrol five years ahead of schedule in 2025 and is evaluating a further increase in the mandate. Last month, state refiners also began selling petrol blended with 85 per cent ethanol for flex-fuel vehicles.
Automakers said that E20 had undergone extensive testing before its nationwide roll-out. Vehicles designed for E20 have been on sale since 2025, while the fuel is also compatible with older E10-certified vehicles, said Rahul Bharti, executive director at Maruti Suzuki India.
Although fuel economy may decline modestly, the tradeoff is offset by the fuel’s broader economic and environmental benefits, he said.
Manufacturers also pushed back against specific claims circulating online. Vikram Gulati, country head at Toyota Kirloskar Motor, said that a widely shared case involving a Toyota Innova Hycross allegedly damaged by E20 was traced to contaminated fuel rather than ethanol blending.
He also rejected claims that ethanol attracts ants, saying petrol’s odour repels insects.
For consumers, however, the biofuel debate comes as vehicle ownership costs continue to climb.
Petrol prices remain near four-year highs following geopolitical disruptions, while insurance premiums, toll charges, poor road conditions and monsoon-related damage have added to motorists’ expenses, making concerns over fuel efficiency and maintenance more politically sensitive.
India’s petrol demand has been expanding faster than diesel consumption, rising an average 8.8 per cent annually over the past five financial years compared with 5.5 per cent for diesel, government data showed.
Petrol accounts for about 18 per cent of refined fuel sales, making the success of the ethanol programme increasingly important to the government’s energy strategy.
The South Asian nation is among several major emerging economies expanding biofuel use, a campaign that has accelerated in the aftermath of the Iran war.
Indonesia is fast-tracking plans to increase biodiesel blending to 50 per cent using palm oil. And debate over biofuel mandates is intensifying in the US, where some conservative groups are urging lawmakers to roll back blending requirements, arguing they increase costs for consumers.
Puri said on Saturday that any move to raise ethanol blending to 25 per cent from 20 per cent would be undertaken only after rigorous testing and consultations with stakeholders.
He added that India’s strategy to diversify transport fuels would rely on multiple technologies, including biofuels, batteries and compressed natural gas. BLOOMBERG https://www.businesstimes.com.sg/international/modis-biofuel-push-comes-under-pressure-indias-motorists-protest
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Malaysia strengthens palm oil push in Nigeria
The Malaysian Palm Oil Council (MPOC) has promised to partner Nigeria to bridge its palm oil demand-supply gap and boost Nigeria’s production capacity through technical expertise support for locals to plant oil palms.
The Chief Executive Officer of MPOC, Ms Belvinder Sron, who stated this during the Malaysia Market Connect Conference 2026, held in Lagos, in partnership with the National Palm Produce Association of Nigeria (NPPAN) and the Nigerian Institute of Food Science and Technology (NIFST), with the theme: “Strengthening Partnerships with Nigeria’s Oils and Fats Industry,” described Nigeria as an important market in terms of palm oil trade.
“Last year we exported about 300,000 metric tonnes to Nigeria, that’s palm oil and palm-based products, and there’s still room to expand the exports of palm oil or palm products into this country. So it’s very interesting, and there’s huge potential here still in this market,” said Sron.
Speaking about building partnerships in this sector, she noted that the conference is one way of building partnerships, citing the event’s turnout.
“We have more than 130 people who have attended; many more wanted to attend. I am sure we will come back again. We had a lot of interesting questions, the paper presentations. People are interested in opening up more plantations here in Nigeria because you already planted oil palm in this country. Oil palm is not new to Nigeria; it’s not new to Africa. Oil palm came from West Africa; we commercialised it in our country. So there’s potential to increase the plantations here,” she said.
She argued that while there is need for expansion in oil palm plantations in Nigeria, the oil supply deficit needs to be covered. “You don’t have enough supply for oils and fats in Nigeria. You’ve got to import, and we want to partner with people here in Nigeria so that while you work towards meeting your domestic demand, we can provide you the supply because Malaysia provides a very consistent supply of palm oil and palm oil products, and we have been exporting to the African region,” she noted.
Speaking about what MPOC is bringing to help improve the lives of smallholders, she said that technical expertise will be provided for locals to plant oil palms.
https://guardian.ng/business-services/agro-care/malaysia-strengthens-palm-oil-push-in-nigeria/
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Palm oil producers bet billions on Nigeria’s edible oil deficit
Nigeria’s two biggest listed palm oil producers are committing billions of naira to plantations, mills, and processing facilities despite already posting record earnings, wagering that Africa’s largest food market will remain structurally short of edible oil for years to come.
Rather than distributing the windfall from surging crude palm oil prices, Presco Plc and Okomu Oil Palm Plc, which posted a combined profit of N72.86 billion in the first quarter of 2026, compared to N69.32 billion, are recycling much of their cash into expanding production, reflecting growing confidence that domestic consumption will continue to outstrip local supply despite years of government efforts to revive the industry.
The investment drive comes as Nigeria, Africa’s most populous country, consumes an estimated 2.1 million to 2.2 million tonnes of edible oil annually but produces only about 1.9 million tonnes, leaving a supply gap that is filled largely through imports from countries such as Malaysia and Côte d’Ivoire, estimated at more than $600 million each year, which is worsening pressure on scarce foreign exchange reserves.
For investors, the latest quarterly results suggest the companies are positioning themselves not simply for another year of bumper profits but for a multi-year expansion cycle built around one of Nigeria’s most persistent agricultural deficits.
Presco generated N62.7 billion in operating cash flow during the first quarter, almost three times Okomu’s N21.5 billion, according to their latest financial statements.
Yet neither company treated the cash surge as an opportunity to reward shareholders immediately. Instead, both retained earnings to finance expansion after paying only final dividends for the 2025 financial year.
Presco spent about N6.4 billion on property, plant, and equipment during the quarter, more than double the amount invested in the same period last year, while Okomu invested close to N1 billion in capital projects and continued spending on immature plantations expected to generate future harvests.
The spending reflects an important distinction often obscured by headline earnings. Nigeria’s largest palm oil companies are no longer merely benefiting from favourable commodity prices; they are deploying those profits to increase future production capacity.
Balance sheets illustrate the scale of that commitment.
https://businessday.ng/market-intelligence/article/palm-oil-producers-bet-billions-on-nigerias-edible-oil-deficit/
Asia Bets on Biofuels to Dodge Middle East Oil Shortages
By Felicity Bradstock - Jul 04, 2026, 12:00 PM CDT
- Biofuel demand is reviving in 2026 as the Iran war and Strait of Hormuz closure sparked a wave of volatility that made buying difficult..
- Vietnam is switching fully to ethanol-blended gasoline and Indonesia is raising its biodiesel mandate to 50%, while Europe holds back over food price and deforestation concerns.
- Think tank Transport & Environment warns biofuel demand could rise up to 70% by 2030 if oil supply stays constrained, risking a food price crisis.
Biofuels are produced by heating biomass feedstocks (plant materials) rapidly at high temperatures (500°C-700°C) in an oxygen-free environment or by using gasification, hydrothermal liquefaction, or low-temperature deconstruction. Ethanol and biodiesel are the two most widely used biofuels, although other feedstocks can be used to produce alternative biofuels. Typical feedstocks include sugar cane, corn, and soybeans, most of which produce low-carbon fuels that can be used in existing engines.
In 2024, the International Energy Agency (IEA) said it expected the use of biofuels to increase significantly by 2030, with a much larger proportion of these fuels produced from waste, residues, and non-food crops, thereby making them more sustainable. The demand for biofuel rose to 4.3 exajoules (EJ) in 2022, thereby surpassing pre-pandemic levels. The IEA suggested that to meet net-zero emissions targets by 2050, global biofuel production would need to increase to 10 EJ by 2030.
By the end of 2024, there were 43 projects expected to be operational by 2030, according to Rystad Energy, with oil and gas firms such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Shell all committing to biofuel production. Many of these projects focused on sustainable aviation fuel (SAF) production, as governments worldwide put increasing pressure on the aviation industry to decarbonise. However, by 2025, interest in biofuels had begun to wane.In late 2025, the OECD said it expected global biofuel use to increase by 0.9 per cent per year over the coming decade, which was much lower than the 3.3 per cent annual growth seen in previous years. The OECD anticipated that biofuel growth would slow in high-income countries due to stagnating fuel demand resulting from electric vehicle adoption and weaker policy support, although continued demand growth in middle-income countries was expected to offset the slowdown.
In 2026, interest in biofuels is reviving, driven by the significant price volatility of fossil fuels. The U.S.-Israeli war on Iran and the resulting closure of the Strait of Hormuz, a key energy trade corridor, have led to energy shortages and driven oil prices sharply higher in recent months, prompting many governments and energy companies to consider investing in alternative fuel production to counter the shortages.
https://oilprice.com/Alternative-Energy/Biofuels/Asia-Bets-on-Biofuels-to-Dodge-Middle-East-Oil-Shortages.html
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India Keeps Eye on Indonesia’s Tight State Control over Palm Oil Exports
Jakarta. An Indian diplomat admitted Friday that his country’s food security relies on Indonesia’s palm oil, as New Delhi intends to keep a close watch over Jakarta’s new trade regime to prevent it from disrupting supplies.
President Prabowo Subianto’s decision to have a single state-run agency oversee the entire palm oil export has kept everyone on their toes. Countries across the globe are largely dependent on Indonesian palm oil, meaning that shifts in export controls are expected to affect commodity flows. Officials from some palm oil-importing nations have revealed their countries’ stance on Jakarta’s trade shake-up, the latest being Indian Ambassador Sandeep Chakravorty.
“We are one of the largest purchasers of palm oil. I believe [the export centralization] is still a work in progress. We don’t have certainty on how those exports will be centralized, but we will watch out for the developments,” Chakravorty told a news conference in Jakarta.
“At the moment, we don’t have concerns that are out of the ordinary. We will be watching the space.”
Jakarta. An Indian diplomat admitted Friday that his country’s food security relies on Indonesia’s palm oil, as New Delhi intends to keep a close watch over Jakarta’s new trade regime to prevent it from disrupting supplies.
President Prabowo Subianto’s decision to have a single state-run agency oversee the entire palm oil export has kept everyone on their toes. Countries across the globe are largely dependent on Indonesian palm oil, meaning that shifts in export controls are expected to affect commodity flows. Officials from some palm oil-importing nations have revealed their countries’ stance on Jakarta’s trade shake-up, the latest being Indian Ambassador Sandeep Chakravorty.
“We are one of the largest purchasers of palm oil. I believe [the export centralization] is still a work in progress. We don’t have certainty on how those exports will be centralized, but we will watch out for the developments,” Chakravorty told a news conference in Jakarta.
“At the moment, we don’t have concerns that are out of the ordinary. We will be watching the space.”
https://jakartaglobe.id/business/india-keeps-eye-on-indonesias-tight-state-control-over-palm-oil-exports
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Modi’s biofuel push comes under pressure as India’s motorists protest
Complaints include weaker fuel efficiency, higher maintenance costs and engine corrosion
INDIAN motorists will gather in New Delhi on Sunday (Jul 5), in the first major protest against a flagship biofuel programme intended to reduce crude imports and support farm incomes.
The government’s accelerated shift to petrol with a higher percentage of ethanol – a signature self-reliance policy for Prime Minister Narendra Modi – has angered drivers, whose complaints include weaker fuel efficiency, higher maintenance costs and engine corrosion.
The government and automakers have been on the defensive after weeks of complaints on social media. Authorities sought to contain the controversy by convening a media briefing with auto industry executives on Saturday. Carmakers dismissed the complaints as unfounded.
“We are very confident that we haven’t seen any glaring issues on social media that warrant a rethink of the government’s biofuel blending programme,” said Puneet Anand, associate vice-president at Hyundai Motor India.
Speaking separately in Rajasthan, Oil Minister Hardeep Singh Puri blamed vested interests of spreading misinformation.
The backlash comes as Modi seeks to expand one of his signature energy initiatives. India met its target of blending 20 per cent ethanol into petrol five years ahead of schedule in 2025 and is evaluating a further increase in the mandate. Last month, state refiners also began selling petrol blended with 85 per cent ethanol for flex-fuel vehicles.
Automakers said that E20 had undergone extensive testing before its nationwide roll-out. Vehicles designed for E20 have been on sale since 2025, while the fuel is also compatible with older E10-certified vehicles, said Rahul Bharti, executive director at Maruti Suzuki India.
Although fuel economy may decline modestly, the tradeoff is offset by the fuel’s broader economic and environmental benefits, he said.
Manufacturers also pushed back against specific claims circulating online. Vikram Gulati, country head at Toyota Kirloskar Motor, said that a widely shared case involving a Toyota Innova Hycross allegedly damaged by E20 was traced to contaminated fuel rather than ethanol blending.
He also rejected claims that ethanol attracts ants, saying petrol’s odour repels insects.
For consumers, however, the biofuel debate comes as vehicle ownership costs continue to climb.
Petrol prices remain near four-year highs following geopolitical disruptions, while insurance premiums, toll charges, poor road conditions and monsoon-related damage have added to motorists’ expenses, making concerns over fuel efficiency and maintenance more politically sensitive.
India’s petrol demand has been expanding faster than diesel consumption, rising an average 8.8 per cent annually over the past five financial years compared with 5.5 per cent for diesel, government data showed.
Petrol accounts for about 18 per cent of refined fuel sales, making the success of the ethanol programme increasingly important to the government’s energy strategy.
The South Asian nation is among several major emerging economies expanding biofuel use, a campaign that has accelerated in the aftermath of the Iran war.
Indonesia is fast-tracking plans to increase biodiesel blending to 50 per cent using palm oil. And debate over biofuel mandates is intensifying in the US, where some conservative groups are urging lawmakers to roll back blending requirements, arguing they increase costs for consumers.
Puri said on Saturday that any move to raise ethanol blending to 25 per cent from 20 per cent would be undertaken only after rigorous testing and consultations with stakeholders.
He added that India’s strategy to diversify transport fuels would rely on multiple technologies, including biofuels, batteries and compressed natural gas. BLOOMBERG https://www.businesstimes.com.sg/international/modis-biofuel-push-comes-under-pressure-indias-motorists-protest
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Malaysia strengthens palm oil push in Nigeria
The Malaysian Palm Oil Council (MPOC) has promised to partner Nigeria to bridge its palm oil demand-supply gap and boost Nigeria’s production capacity through technical expertise support for locals to plant oil palms.
The Chief Executive Officer of MPOC, Ms Belvinder Sron, who stated this during the Malaysia Market Connect Conference 2026, held in Lagos, in partnership with the National Palm Produce Association of Nigeria (NPPAN) and the Nigerian Institute of Food Science and Technology (NIFST), with the theme: “Strengthening Partnerships with Nigeria’s Oils and Fats Industry,” described Nigeria as an important market in terms of palm oil trade.
“Last year we exported about 300,000 metric tonnes to Nigeria, that’s palm oil and palm-based products, and there’s still room to expand the exports of palm oil or palm products into this country. So it’s very interesting, and there’s huge potential here still in this market,” said Sron.
Speaking about building partnerships in this sector, she noted that the conference is one way of building partnerships, citing the event’s turnout.
“We have more than 130 people who have attended; many more wanted to attend. I am sure we will come back again. We had a lot of interesting questions, the paper presentations. People are interested in opening up more plantations here in Nigeria because you already planted oil palm in this country. Oil palm is not new to Nigeria; it’s not new to Africa. Oil palm came from West Africa; we commercialised it in our country. So there’s potential to increase the plantations here,” she said.
She argued that while there is need for expansion in oil palm plantations in Nigeria, the oil supply deficit needs to be covered. “You don’t have enough supply for oils and fats in Nigeria. You’ve got to import, and we want to partner with people here in Nigeria so that while you work towards meeting your domestic demand, we can provide you the supply because Malaysia provides a very consistent supply of palm oil and palm oil products, and we have been exporting to the African region,” she noted.
Speaking about what MPOC is bringing to help improve the lives of smallholders, she said that technical expertise will be provided for locals to plant oil palms.
https://guardian.ng/business-services/agro-care/malaysia-strengthens-palm-oil-push-in-nigeria/
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Palm oil producers bet billions on Nigeria’s edible oil deficit
Nigeria’s two biggest listed palm oil producers are committing billions of naira to plantations, mills, and processing facilities despite already posting record earnings, wagering that Africa’s largest food market will remain structurally short of edible oil for years to come.
Rather than distributing the windfall from surging crude palm oil prices, Presco Plc and Okomu Oil Palm Plc, which posted a combined profit of N72.86 billion in the first quarter of 2026, compared to N69.32 billion, are recycling much of their cash into expanding production, reflecting growing confidence that domestic consumption will continue to outstrip local supply despite years of government efforts to revive the industry.
The investment drive comes as Nigeria, Africa’s most populous country, consumes an estimated 2.1 million to 2.2 million tonnes of edible oil annually but produces only about 1.9 million tonnes, leaving a supply gap that is filled largely through imports from countries such as Malaysia and Côte d’Ivoire, estimated at more than $600 million each year, which is worsening pressure on scarce foreign exchange reserves.
For investors, the latest quarterly results suggest the companies are positioning themselves not simply for another year of bumper profits but for a multi-year expansion cycle built around one of Nigeria’s most persistent agricultural deficits.
Presco generated N62.7 billion in operating cash flow during the first quarter, almost three times Okomu’s N21.5 billion, according to their latest financial statements.
Yet neither company treated the cash surge as an opportunity to reward shareholders immediately. Instead, both retained earnings to finance expansion after paying only final dividends for the 2025 financial year.
Presco spent about N6.4 billion on property, plant, and equipment during the quarter, more than double the amount invested in the same period last year, while Okomu invested close to N1 billion in capital projects and continued spending on immature plantations expected to generate future harvests.
The spending reflects an important distinction often obscured by headline earnings. Nigeria’s largest palm oil companies are no longer merely benefiting from favourable commodity prices; they are deploying those profits to increase future production capacity.
Balance sheets illustrate the scale of that commitment.
https://businessday.ng/market-intelligence/article/palm-oil-producers-bet-billions-on-nigerias-edible-oil-deficit/
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July 03, 2026
Major Boost For Malaysia Palm Oil Compliance As MSPO Wins Dutch Regulator Approval
Malaysia’s Malaysian Sustainable Palm Oil (MSPO) certification has been recognised by the Netherlands Food and Consumer Product Safety Authority (NVWA) as a Private Control System under the European Union Deforestation Regulation (EUDR), marking a significant boost to the country’s palm oil export readiness.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said the recognition follows NVWA’s assessment and confirms MSPO’s suitability as a third-party assurance framework to support regulatory compliance under the EUDR regime.
She said MSPO, as Malaysia’s national sustainability standard, is backed by a structured certification, auditing and regulatory system that strengthens traceability and accountability across the supply chain.
“This recognition allows MSPO-certified Malaysian palm oil shipments to be considered under NVWA supervisory processes, subject to EUDR requirements,” she said.
Noraini noted that the Netherlands is a key hub in Europe’s palm oil trade, with Rotterdam serving as the region’s largest port and a major entry point for agricultural commodities.
The recognition comes ahead of the EUDR implementation timeline, which will apply to large and medium operators from Dec 30, 2026, and small operators from June 2027.
The ministry said the development underscores Malaysia’s readiness to meet tightening global sustainability standards, particularly in traceability, compliance and supply chain transparency through MSPO implementation.
It added that ongoing efforts will focus on strengthening audits, enhancing traceability systems and supporting smallholders and industry players to ensure full compliance with EUDR requirements.
Malaysia said the recognition reinforces its strategy to maintain the competitiveness of its palm oil sector while aligning with evolving environmental and regulatory expectations in key export markets.
https://www.businesstoday.com.my/2026/07/03/major-boost-for-malaysia-palm-oil-compliance-as-mspo-wins-dutch-regulator-approval/
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Dutch Recognition Of MSPO Strengthens Palm Oil Industry's Readiness For EUDR
PUTRAJAYA, July 3 (Bernama) -- The Netherlands Food and Consumer Product Safety Authority’s (NVWA) recognition of the Malaysian Sustainable Palm Oil (MSPO) certification as a Private Control System under the European Union Deforestation Regulation (EUDR) framework reinforces the readiness of the nation's palm oil industry to meet the European Union market requirements.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said that, following an assessment, MSPO had been accepted as a third-party assurance system that could support regulatory oversight related to EUDR compliance.
In a statement today, she said that the recognition reinforces MSPO's position as Malaysia's national sustainability standard, with a well-structured certification, audit, and regulatory framework.
"This enables MSPO-certified Malaysian palm oil shipments to be considered under NVWA's appropriate supervisory procedures, subject to the requirements set out under the EUDR," she said.
Noraini said the Netherlands holds an important position in the European palm oil trade, as Rotterdam -- its second-largest city and Europe's largest port -- is one of the region's main entry points for agricultural commodities.
She said the recognition is timely, given that the EUDR is set to take effect on large and medium-sized operators on Dec 30, 2026, followed by small operators in June 2027.
"The recognition also supports the Malaysian palm oil industry's readiness to meet international sustainability, traceability and supply chain compliance requirements, including through the implementation of MSPO.
“The recognition further reinforces Malaysia's efforts to develop a sustainable, responsible and competitive palm oil industry, in line with international market requirements, while safeguarding the country's commodity exports," she added.
The Plantation and Commodities Ministry said it would continue to strengthen the implementation of MSPO, together with relevant agencies, certification bodies, auditors, industry players, and international strategic partners.
Efforts would focus on compliance, auditing, traceability and guidance for smallholders and industry players to support the palm oil sector's preparedness for the implementation of the EUDR.
https://www.bernamabiz.com/news.php?id=2576128/
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MPOC confident palm oil producers can meet importers’ food safety requirements
THE Malaysian Palm Oil Council (MPOC) is confident that the local palm oil industry will be able to adapt and comply with “legitimate market expectations” amid concerns over the possibility of additional food safety measures imposed on palm oil by importing countries.
On Jan 1, 2026, Türkiye became the first country outside the European Union (EU) to impose mandatory sampling and laboratory analysis for 3-monochloropropanediol (3-MCPD) esters and glycidyl fatty acid esters (GE) on edible oils.
MPOC CEO Belvinder Sron says the Malaysian palm oil industry has a long track record of meeting regulatory requirements in major export markets, including those related to food safety, quality, sustainability, traceability and product specifications.
“As such, the MPOC does not view the possibility of additional requirements in individual markets as a concern, provided that such measures are science-based, transparent and implemented in a predictable manner.
“Malaysia remains committed to working closely with regulators, industry stakeholders and trading partners to ensure continued compliance and uninterrupted supply to global markets,” she says in a written response to questions from The Edge.
3-MCPD esters and GE are contaminants formed during the high-temperature refining of edible oils and fats. The contaminants drew global attention after the European Food Safety Authority released a 2016 report warning of potential health risks.
To address this, the Malaysian Palm Oil Board (MPOB) has capped 3-MCPD levels in palm oil, but while technologies to lower the contaminant exist, industry adoption has proven difficult due to cost and operational challenges. At present, CPO washing remains the most widely used method for reducing 3-MCPD, whether carried out at mills or refineries.
“The EU standards came into force on Jan 1, 2021, yet for five years, there was little response outside Europe, except in Malaysia, which attempted implementation from Jan 1, 2023. Türkiye quietly announced its intention in 2023, so companies trading with them would have been aware but the formal enforcement from Jan 1, 2026, still marked a significant shift,” says Qua Kiat Seng, a palm oil industry veteran with experience in refining, foods, oleochemicals and personal care in Malaysia and Europe.
However, the move to enforce testing for 3-MCPD esters and GE in Malaysia through MPOB was deferred from the 2023 deadline. Last September, the MPOB told The Edge that it would enforce licensing requirements to curb 3-MCPD esters and GE in palm oil sold domestically from January this year and that no blanket extensions would be given. However, refineries may apply for more time if they show evidence that they are making progress towards meeting the requirement.
The key reason Türkiye has adopted the testing for the contaminants is to meet EU standards as it exports to the region.
Belvinder explains that the EU introduced maximum limits for GE in edible oils and fats in 2018, followed by maximum limits for 3-MCPD esters in 2021. As Türkiye is a significant exporter of food products to the EU market, where compliance with EU food safety requirements is important, the introduction of mandatory sampling and laboratory analysis for GE and 3-MCPD esters in edible oils is not entirely unexpected.
“As with any importing country, Türkiye has the prerogative to establish and enforce food safety requirements for products entering its market. The introduction of mandatory sampling and laboratory analysis for 3-MCPD esters and GE should be viewed within this context,” she says.
Furthermore, Malaysia has been supplying GE- and 3-MCPD-compliant palm oil to the EU market for years and has extensive experience in meeting these requirements.
“As such, Malaysia is well positioned to meet Türkiye’s requirements and to continue supplying compliant palm oil to the market. The industry has already developed and adopted proven mitigation technologies to effectively manage 3-MCPD and GE levels throughout the supply chain,” she adds.
MPOC, funded by the industry and government grants, serves as the global promotion and market-expansion arm for Malaysian palm oil.
https://theedgemalaysia.com/node/808859
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Indonesian President orders cooperatives to enter palm oil business chain
Jakarta (ANTARA) - President Prabowo Subianto instructed domestic cooperatives to actively engage in the palm oil industry's supply chain, spanning from plantation management and crude palm oil (CPO) processing to downstream derivative products.
The policy shift aims to dismantle private sector monopolies and establish a more equitable trade ecosystem for local farmers, according to Cooperatives Minister Ferry Juliantono.
"Previously, everything was private: the plantations were private, the CPO was private, and the derivative products were private," he stated during a press conference here on Thursday (July 2).
"Now, under the President's direction, cooperatives must be involved not only in the plantations but also in the production process, including the derivative products," the minister added.
According to Ferry, integrating cooperatives throughout the value chain is a strategic effort to strengthen the people's economy and secure higher value-added returns for independent oil palm farmers.
He pointed out that private conglomerates currently control the vast majority of the palm oil business from upstream cultivation to downstream manufacturing. This extreme consolidation has led to deep structural ironies within the domestic market.
"We have received complaints from our friends in the oil palm farmer cooperatives. They are queuing for cooking oil. It is ironic that people who own oil palms are queuing for cooking oil. We think this is an unfair model," Ferry remarked.
To rectify this imbalance, the government is repositioning cooperatives as industrial instruments capable of managing plasma plantations and manufacturing consumer-ready commodities like cooking oil.
As a concrete step, the Cooperatives Ministry has signed a memorandum of understanding with state-owned enterprise PT Agrinas Palma Nusantara to establish a cooperative-based oil palm plantation ecosystem.
Through this partnership, local cooperatives will manage Agrinas' plasma plantations while receiving institutional training, capacity-building programs, and management upgrades to meet corporate partnership standards.
In addition, Ferry announced that the ministry will inaugurate a flagship cooperative-based CPO mill in Musi Banyuasin, South Sumatra, around late July or early August 2026.
The mill, which spans 3,100 hectares and boasts a production capacity of 60 tons per hour, will serve as the primary blueprint for scaling palm oil cooperatives nationwide.
Ferry concluded that this cooperative-led ecosystem will eventually expand beyond palm oil to include other strategic agricultural commodities, such as corn, soybeans, and cassava, to foster broader grassroots economic contribution.
https://en.antaranews.com/news/421389/president-orders-cooperatives-to-enter-palm-oil-business-chain
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Daabon becomes largest palm oil producer in the Americas following Agropalma acquisition
Colombian agribusiness Grupo Daabon (Daabon) has become the largest producer of palm oil in the Americas following its acquisition of Agropalma, Brazil’s leading producer of palm oil and derivatives.
The acquisition includes all of Agropalma’s operations in Pará state comprising 39,000ha of planted oil palm; 64,000ha of forest reserve area; six extraction plants in Tailândia; a refinery in Belém; and a bonded export terminal, marking Daabon’s entry into the Brazilian market, the company said on 22 June.
Commenting on the acquisition, Manuel Davila, managing director of Daabon Europa and Daabon UK, said: “Agropalma is a family farming business that shares our values and commitment to sustainability – our mission now is to build on our shared legacy. Together, we will be … better positioned to serve the demands of European, UK and global markets with certified sustainable, deforestation-free palm oil.”
As part of Daabon’s move into Brazil, the company said it would increase support and engagement programmes with smallholder farmers in Brazil and would invest in improving the productivity of its palm plantations in line with the development potential of the country’s sustainable palm oil sector.
The company said it would also bring Agropalma operations in line with Daabon’s standards and certifications.
Agropalma’s operations span the palm oil production chain – from seedling production to refined oil, speciality fats and high-value-added solutions.
Following the acquisition, Agropalma’s operations in Brazil would maintain the Agropalma name. A refinery located in Limeira, São Paulo state - which was not included in the agreement – would operate as Indústrias Xhara under the management of APAR Holdings group.
Family-owned Grupo Gaabon is active in the agriculture, industry, logistics and real estate sectors, with a portfolio that includes palm oil, bananas, coffee, cocoa, avocados, bioenergy, port services, and transportation.
https://www.ofimagazine.com/news/daabon-becomes-largest-palm-oil-producer-in-the-americas-following-agropalma-acquisition
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Tropical forest protection fund at risk after UK stalls on pledge
The Brazil-led TFFF was launched at COP30 as an innovative financial model to keep rainforests standing, but is still short on startup cash
A new global rainforest fund, unveiled by Brazil at COP30, will likely struggle to meet its initial funding target this year, after the UK failed to announce an expected pledge during London Climate Action Week and other donors have been slow to come on board.
The Tropical Forest Forever Facility (TFFF) was launched on the sidelines of last November's UN climate summit as an innovative mechanism to fund rainforest protection. Instead of relying on grants, it seeks to raise public and private money, invest it in financial markets, and then pay rainforest countries a share of the returns.
The facility has so far raised $6.8 billion but needs to mobilise at least $10 billion by the end of 2026, under conditions set by Norway to unlock its pledge. If the fund falls short of this goal, the Norwegian contribution of up to $3 billion in loans over 10 years will not be disbursed.
At a gathering of ministers from rainforest-rich countries at London's Kew Botanic Gardens last Tuesday in searing heat, UK climate minister Katie White praised the TFFF and said she had held a "robust conversation in government over the last few weeks" about the importance of forests and climate action.
She had argued, she said, that "this is not a nice to have - this is absolutely vital for our security and our prosperity". She told the small crowd of visiting ministers, officials and forest campaigners at Kew that the TFFF was an "innovative and impactful development".
https://www.climatechangenews.com/2026/07/03/tropical-forest-protection-fund-at-risk-after-uk-stalls-on-pledge/
Major Boost For Malaysia Palm Oil Compliance As MSPO Wins Dutch Regulator Approval
Malaysia’s Malaysian Sustainable Palm Oil (MSPO) certification has been recognised by the Netherlands Food and Consumer Product Safety Authority (NVWA) as a Private Control System under the European Union Deforestation Regulation (EUDR), marking a significant boost to the country’s palm oil export readiness.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said the recognition follows NVWA’s assessment and confirms MSPO’s suitability as a third-party assurance framework to support regulatory compliance under the EUDR regime.
She said MSPO, as Malaysia’s national sustainability standard, is backed by a structured certification, auditing and regulatory system that strengthens traceability and accountability across the supply chain.
“This recognition allows MSPO-certified Malaysian palm oil shipments to be considered under NVWA supervisory processes, subject to EUDR requirements,” she said.
Noraini noted that the Netherlands is a key hub in Europe’s palm oil trade, with Rotterdam serving as the region’s largest port and a major entry point for agricultural commodities.
The recognition comes ahead of the EUDR implementation timeline, which will apply to large and medium operators from Dec 30, 2026, and small operators from June 2027.
The ministry said the development underscores Malaysia’s readiness to meet tightening global sustainability standards, particularly in traceability, compliance and supply chain transparency through MSPO implementation.
It added that ongoing efforts will focus on strengthening audits, enhancing traceability systems and supporting smallholders and industry players to ensure full compliance with EUDR requirements.
Malaysia said the recognition reinforces its strategy to maintain the competitiveness of its palm oil sector while aligning with evolving environmental and regulatory expectations in key export markets.
https://www.businesstoday.com.my/2026/07/03/major-boost-for-malaysia-palm-oil-compliance-as-mspo-wins-dutch-regulator-approval/
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Dutch Recognition Of MSPO Strengthens Palm Oil Industry's Readiness For EUDR
PUTRAJAYA, July 3 (Bernama) -- The Netherlands Food and Consumer Product Safety Authority’s (NVWA) recognition of the Malaysian Sustainable Palm Oil (MSPO) certification as a Private Control System under the European Union Deforestation Regulation (EUDR) framework reinforces the readiness of the nation's palm oil industry to meet the European Union market requirements.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said that, following an assessment, MSPO had been accepted as a third-party assurance system that could support regulatory oversight related to EUDR compliance.
In a statement today, she said that the recognition reinforces MSPO's position as Malaysia's national sustainability standard, with a well-structured certification, audit, and regulatory framework.
"This enables MSPO-certified Malaysian palm oil shipments to be considered under NVWA's appropriate supervisory procedures, subject to the requirements set out under the EUDR," she said.
Noraini said the Netherlands holds an important position in the European palm oil trade, as Rotterdam -- its second-largest city and Europe's largest port -- is one of the region's main entry points for agricultural commodities.
She said the recognition is timely, given that the EUDR is set to take effect on large and medium-sized operators on Dec 30, 2026, followed by small operators in June 2027.
"The recognition also supports the Malaysian palm oil industry's readiness to meet international sustainability, traceability and supply chain compliance requirements, including through the implementation of MSPO.
“The recognition further reinforces Malaysia's efforts to develop a sustainable, responsible and competitive palm oil industry, in line with international market requirements, while safeguarding the country's commodity exports," she added.
The Plantation and Commodities Ministry said it would continue to strengthen the implementation of MSPO, together with relevant agencies, certification bodies, auditors, industry players, and international strategic partners.
Efforts would focus on compliance, auditing, traceability and guidance for smallholders and industry players to support the palm oil sector's preparedness for the implementation of the EUDR.
https://www.bernamabiz.com/news.php?id=2576128/
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MPOC confident palm oil producers can meet importers’ food safety requirements
THE Malaysian Palm Oil Council (MPOC) is confident that the local palm oil industry will be able to adapt and comply with “legitimate market expectations” amid concerns over the possibility of additional food safety measures imposed on palm oil by importing countries.
On Jan 1, 2026, Türkiye became the first country outside the European Union (EU) to impose mandatory sampling and laboratory analysis for 3-monochloropropanediol (3-MCPD) esters and glycidyl fatty acid esters (GE) on edible oils.
MPOC CEO Belvinder Sron says the Malaysian palm oil industry has a long track record of meeting regulatory requirements in major export markets, including those related to food safety, quality, sustainability, traceability and product specifications.
“As such, the MPOC does not view the possibility of additional requirements in individual markets as a concern, provided that such measures are science-based, transparent and implemented in a predictable manner.
“Malaysia remains committed to working closely with regulators, industry stakeholders and trading partners to ensure continued compliance and uninterrupted supply to global markets,” she says in a written response to questions from The Edge.
3-MCPD esters and GE are contaminants formed during the high-temperature refining of edible oils and fats. The contaminants drew global attention after the European Food Safety Authority released a 2016 report warning of potential health risks.
To address this, the Malaysian Palm Oil Board (MPOB) has capped 3-MCPD levels in palm oil, but while technologies to lower the contaminant exist, industry adoption has proven difficult due to cost and operational challenges. At present, CPO washing remains the most widely used method for reducing 3-MCPD, whether carried out at mills or refineries.
“The EU standards came into force on Jan 1, 2021, yet for five years, there was little response outside Europe, except in Malaysia, which attempted implementation from Jan 1, 2023. Türkiye quietly announced its intention in 2023, so companies trading with them would have been aware but the formal enforcement from Jan 1, 2026, still marked a significant shift,” says Qua Kiat Seng, a palm oil industry veteran with experience in refining, foods, oleochemicals and personal care in Malaysia and Europe.
However, the move to enforce testing for 3-MCPD esters and GE in Malaysia through MPOB was deferred from the 2023 deadline. Last September, the MPOB told The Edge that it would enforce licensing requirements to curb 3-MCPD esters and GE in palm oil sold domestically from January this year and that no blanket extensions would be given. However, refineries may apply for more time if they show evidence that they are making progress towards meeting the requirement.
The key reason Türkiye has adopted the testing for the contaminants is to meet EU standards as it exports to the region.
Belvinder explains that the EU introduced maximum limits for GE in edible oils and fats in 2018, followed by maximum limits for 3-MCPD esters in 2021. As Türkiye is a significant exporter of food products to the EU market, where compliance with EU food safety requirements is important, the introduction of mandatory sampling and laboratory analysis for GE and 3-MCPD esters in edible oils is not entirely unexpected.
“As with any importing country, Türkiye has the prerogative to establish and enforce food safety requirements for products entering its market. The introduction of mandatory sampling and laboratory analysis for 3-MCPD esters and GE should be viewed within this context,” she says.
Furthermore, Malaysia has been supplying GE- and 3-MCPD-compliant palm oil to the EU market for years and has extensive experience in meeting these requirements.
“As such, Malaysia is well positioned to meet Türkiye’s requirements and to continue supplying compliant palm oil to the market. The industry has already developed and adopted proven mitigation technologies to effectively manage 3-MCPD and GE levels throughout the supply chain,” she adds.
MPOC, funded by the industry and government grants, serves as the global promotion and market-expansion arm for Malaysian palm oil.
https://theedgemalaysia.com/node/808859
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Indonesian President orders cooperatives to enter palm oil business chain
Jakarta (ANTARA) - President Prabowo Subianto instructed domestic cooperatives to actively engage in the palm oil industry's supply chain, spanning from plantation management and crude palm oil (CPO) processing to downstream derivative products.
The policy shift aims to dismantle private sector monopolies and establish a more equitable trade ecosystem for local farmers, according to Cooperatives Minister Ferry Juliantono.
"Previously, everything was private: the plantations were private, the CPO was private, and the derivative products were private," he stated during a press conference here on Thursday (July 2).
"Now, under the President's direction, cooperatives must be involved not only in the plantations but also in the production process, including the derivative products," the minister added.
According to Ferry, integrating cooperatives throughout the value chain is a strategic effort to strengthen the people's economy and secure higher value-added returns for independent oil palm farmers.
He pointed out that private conglomerates currently control the vast majority of the palm oil business from upstream cultivation to downstream manufacturing. This extreme consolidation has led to deep structural ironies within the domestic market.
"We have received complaints from our friends in the oil palm farmer cooperatives. They are queuing for cooking oil. It is ironic that people who own oil palms are queuing for cooking oil. We think this is an unfair model," Ferry remarked.
To rectify this imbalance, the government is repositioning cooperatives as industrial instruments capable of managing plasma plantations and manufacturing consumer-ready commodities like cooking oil.
As a concrete step, the Cooperatives Ministry has signed a memorandum of understanding with state-owned enterprise PT Agrinas Palma Nusantara to establish a cooperative-based oil palm plantation ecosystem.
Through this partnership, local cooperatives will manage Agrinas' plasma plantations while receiving institutional training, capacity-building programs, and management upgrades to meet corporate partnership standards.
In addition, Ferry announced that the ministry will inaugurate a flagship cooperative-based CPO mill in Musi Banyuasin, South Sumatra, around late July or early August 2026.
The mill, which spans 3,100 hectares and boasts a production capacity of 60 tons per hour, will serve as the primary blueprint for scaling palm oil cooperatives nationwide.
Ferry concluded that this cooperative-led ecosystem will eventually expand beyond palm oil to include other strategic agricultural commodities, such as corn, soybeans, and cassava, to foster broader grassroots economic contribution.
https://en.antaranews.com/news/421389/president-orders-cooperatives-to-enter-palm-oil-business-chain
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Daabon becomes largest palm oil producer in the Americas following Agropalma acquisition
Colombian agribusiness Grupo Daabon (Daabon) has become the largest producer of palm oil in the Americas following its acquisition of Agropalma, Brazil’s leading producer of palm oil and derivatives.
The acquisition includes all of Agropalma’s operations in Pará state comprising 39,000ha of planted oil palm; 64,000ha of forest reserve area; six extraction plants in Tailândia; a refinery in Belém; and a bonded export terminal, marking Daabon’s entry into the Brazilian market, the company said on 22 June.
Commenting on the acquisition, Manuel Davila, managing director of Daabon Europa and Daabon UK, said: “Agropalma is a family farming business that shares our values and commitment to sustainability – our mission now is to build on our shared legacy. Together, we will be … better positioned to serve the demands of European, UK and global markets with certified sustainable, deforestation-free palm oil.”
As part of Daabon’s move into Brazil, the company said it would increase support and engagement programmes with smallholder farmers in Brazil and would invest in improving the productivity of its palm plantations in line with the development potential of the country’s sustainable palm oil sector.
The company said it would also bring Agropalma operations in line with Daabon’s standards and certifications.
Agropalma’s operations span the palm oil production chain – from seedling production to refined oil, speciality fats and high-value-added solutions.
Following the acquisition, Agropalma’s operations in Brazil would maintain the Agropalma name. A refinery located in Limeira, São Paulo state - which was not included in the agreement – would operate as Indústrias Xhara under the management of APAR Holdings group.
Family-owned Grupo Gaabon is active in the agriculture, industry, logistics and real estate sectors, with a portfolio that includes palm oil, bananas, coffee, cocoa, avocados, bioenergy, port services, and transportation.
https://www.ofimagazine.com/news/daabon-becomes-largest-palm-oil-producer-in-the-americas-following-agropalma-acquisition
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Tropical forest protection fund at risk after UK stalls on pledge
The Brazil-led TFFF was launched at COP30 as an innovative financial model to keep rainforests standing, but is still short on startup cash
A new global rainforest fund, unveiled by Brazil at COP30, will likely struggle to meet its initial funding target this year, after the UK failed to announce an expected pledge during London Climate Action Week and other donors have been slow to come on board.
The Tropical Forest Forever Facility (TFFF) was launched on the sidelines of last November's UN climate summit as an innovative mechanism to fund rainforest protection. Instead of relying on grants, it seeks to raise public and private money, invest it in financial markets, and then pay rainforest countries a share of the returns.
The facility has so far raised $6.8 billion but needs to mobilise at least $10 billion by the end of 2026, under conditions set by Norway to unlock its pledge. If the fund falls short of this goal, the Norwegian contribution of up to $3 billion in loans over 10 years will not be disbursed.
At a gathering of ministers from rainforest-rich countries at London's Kew Botanic Gardens last Tuesday in searing heat, UK climate minister Katie White praised the TFFF and said she had held a "robust conversation in government over the last few weeks" about the importance of forests and climate action.
She had argued, she said, that "this is not a nice to have - this is absolutely vital for our security and our prosperity". She told the small crowd of visiting ministers, officials and forest campaigners at Kew that the TFFF was an "innovative and impactful development".
https://www.climatechangenews.com/2026/07/03/tropical-forest-protection-fund-at-risk-after-uk-stalls-on-pledge/
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July 02, 2026
Indonesia's 50% biodiesel blending rate takes effect
By Reuters
JAKARTA, July 1 (Reuters) - Indonesia's new 50% biodiesel blending mandate took effect on Wednesday, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, even as stakeholders await a revised biodiesel allocation from the government.
In an effort to achieve energy independence, Indonesia increased the mandated blending rate to 50% from 40%, effective July 1. The programme, however, faces feasibility challenges in the wake of retreating crude oil prices and high prices of palm oil, which typically trades at a premium to diesel.
"Implementation (of B50) is proceeding in accordance with the applicable regulations," energy ministry official Noor Arifin Muhammad said in a text message.
While the government has provided a three-month transition period to allow fuel retailers to clear out B40 stocks according to a decree issued in June, producers must now deliver higher-quality palm-based diesel for retailers to blend into biodiesel.
The new standards include lower water content and longer oxidation stability than in B40.
While the higher blending rate is likely to increase demand, the government has not announced the amount of palm-based diesel that producers must supply to fuel retailers to mix with conventional diesel to make B50.
Under the B40 mandate, initially planned throughout 2026, the ministry had allocated 15.64 million kilolitres of biodiesel.
"The (new) allocation is not available yet. Yesterday we had a meeting with the energy ministry and they said it is still being prepared," said Catra De Thouars, vice chair of the Indonesian Biofuel Producers Association. "For now, we are using the old allocation as it can still be used."
Between January and April, 4.61 million kilolitres of biodiesel were distributed, energy ministry data shows.
https://www.reuters.com/world/asia-pacific/indonesias-50-biodiesel-blending-rate-takes-effect-2026-07-01/
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Indonesian Palm Oil Exports Up 7.71%, But Not Enough to Prevent Deficit
Jakarta. Indonesia reported Wednesday that palm oil shipments to foreign markets had jumped slightly to $9.59 billion in the first five months of 2026, but the uptick is not enough to feed the positive trade balance.
Indonesia registered $8.90 billion worth of palm oil exports from January to May of 2025, according to the central statistics agency BPS.
“This brings exports of crude palm oil and its derivatives up by 7.71%,” BPS deputy Ateng Hartono told a press conference.
From a volume standpoint, exports of palm oil products saw muted growth of 7.41% compared to the previous year. Indonesia had shipped around 8.30 million tons to overseas markets last year as of end-May, according to BPS. The volume then grew to 8.92 million tons.
The agency did not say which countries had a big appetite for Indonesian palm oil. However, a huge chunk of India-bound exports between January and May were goods categorized as “vegetable oils and animal fats”, reaching almost $1.2 billion. Palm oil belongs to this category.
All palm oil products have to go through Indonesia’s one-gate export system. But under the current transition period beginning early June, businesses only have to report their export documents to the state-run company Danantara Sumberdaya Indonesia (DSI). The latest statistics have not reflected the impact of this trade regime. However, some of Indonesia’s palm oil buyers — including Singapore, Egypt, and Pakistan — have called for a stable flow of this agrifood commodity. Indonesia leads the global supplies of palm oil.
Southeast Asia’s biggest economy has been betting on palm oil to lift its exports, but the increase is not enough to prevent Indonesia from being in the red. Indonesia has had a 72-month surplus since May 2020, but registered a $1.61 billion deficit in May 2026. Ateng had told the briefing that the negative trade balance came from the deficit in oil and gas trade.
"Singapore made up the lion's share of our oil and gas imports, reaching $5.1 billion between January and May," he explained.
Iran’s Strait of Hormuz closure following a US-Israeli surprise attack in late February has driven up oil prices. Major Middle Eastern oil producers have used this narrow waterway to bring energy to customers around the world.
https://jakartaglobe.id/business/indonesian-palm-oil-exports-up-771-but-not-enough-to-prevent-deficit
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Indonesia Faces Rising Pressure on Confidence and FX Buffers
Fitch Ratings-Hong Kong-01 July 2026: Bank Indonesia’s (BI) recent rate hikes underscore a strong resolve to countering depreciation pressure on the rupiah following the government’s announcement of plans to centralise commodity exports, Fitch Ratings says. The central bank raised its benchmark policy rate three times in about a month, by a cumulative 100bp to 5.75%, to support the currency and shore up investor confidence amid domestic market volatility driven by external headwinds and investor concerns over policy credibility, fiscal discipline and capital market governance.
External pressure has become more visible in a narrower goods trade surplus and rupiah weakness. The rupiah has underperformed most peer currencies so far this year, while gross international reserves fell by 4.6% between March and May. The rupiah regained some ground after rate hikes and other stabilisation measures. Fitch projects reserves to cover 4.9 months of current external payments in 2026, slightly below the ‘BBB’ median of 5.0 months. The decline primarily reflects a weaker term of trade from higher global energy prices, BI’s intervention to support the rupiah and external debt servicing. When Fitch revised the Outlook on Indonesia’s sovereign rating to Negative from Stable in early March 2026, it highlighted the risk of further external pressures stemming from fragile investor sentiment, which could raise the government’s borrowing costs and erode external buffers.
BI’s FX intervention reduces reserves and absorbs rupiah liquidity, tightening domestic funding conditions and reinforcing the credit impact of weaker investor sentiment. It has also contributed to a gradual build-up of net short foreign-currency positions, which reached nearlyUSD27 billion at end-May and could increase future FX liquidity needs as they mature. A sustained and sharp decline in FX reserves, particularly if driven by persistent capital outflows linked to weaker investor confidence or further weakening in governance indicators, could add pressure on the sovereign rating.
Lower global oil prices should help ease strains on Indonesia’s public finances and external position. However, it remains uncertain whether the 60-day ceasefire extension in the Iran war will hold, while the recent youth-led protests in Indonesia may increase spending pressures. Fragile investor sentiment could also weigh further on external buffers, underscoring the importance of sustained and effective execution of measures to address investor concerns over capital market transparency.
https://www.fitchratings.com/research/sovereigns/indonesia-faces-rising-pressure-on-confidence-fx-buffers-01-07-2026
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Deforestation still haunts Indonesia’s national parks
The most protected conservation areas in Indonesia face dangers that threaten their tree cover.
SEBANGAU, CENTRAL KALIMANTAN – Despite having the highest conservation status, many national parks are still suffering from forest destruction, raising questions about commitments from various authorities to preserve the country’s remaining woodlands.
Deforestation is persistent in Indonesia, and it has been on the rise in recent years. According to environmental NGO Auriga Nusantara, more than 430,000 hectares of forest were cleared in 2025. The figure, nearly the same size as seven Jakartas, nearly doubled the amount in 2024.
Of the total figure, around 25,000 ha of cleared forests were located in conservation areas, including national parks like Sebangau in Central Kalimantan, home to peat ecosystems and the critically endangered Bornean orangutan that has been enduring decades of deforestation.
But nearly 2,000 ha of the park and its surrounding zone were cleared to make way for oil palm plantations in 2024, according to Auriga. The clearing was the sixth-largest oil palm encroachment among 57 national parks in the country.
Existing regulations prohibit any conversion of forest land inside a national park for plantations or other purposes. Even indigenous people and local communities are only allowed to utilize land inside national parks under tight limitations without massively clearing tree cover.
In our latest special report, The Jakarta Post visited Sebangau to see parts of the national park that has been plagued by deforestation, part of which is the result of illegal oil palm plantations opened within the park’s borders.
These plantations, some of which are reportedly owned by local smallholders, feed a mill that produces crude palm oil (CPO) for various companies, including multinational ones that previously committed not to use ingredients linked to deforestation.
But oil palm plantations are just the tip of the iceberg in Sebangau.
Tenurial conflicts between park management and an indigenous Dayak subtribe that has been living around Sebangau for generations led to the opening of dozens of illegal gold mining sites across Sebangau.
Authorities acknowledged the persisting encroachment in Sebangau and other national parks, pointing to a lack of forest rangers to enforce regulations against illicit business activities.
To solve the law enforcement gap, the government created a task force to eradicate these illegal oil palm plantations and mining sites, including in Sebangau where officers have reclaimed nearly 1,500 ha of plantations to be reforested.
However, observers have been skeptical about the plan, arguing that law enforcement alone will not be sufficient to recover the degraded forest without a proper plan to address the root of the problems.
Saving Sebangau and other national parks, they said, will require the government to sit down and work together with all involved parties, including indigenous people, to look for sustainable solutions.
https://asianews.network/deforestation-still-haunts-indonesias-national-parks/
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Malaysia introduces AI and innovations in palm oil production
Malaysia’s palm oil industry is shifting from a model focused primarily on raw material production toward the development of innovative technologies and high-value-added products. This was stated by Noraini Ahmad during the Malaysian Palm Oil Board’s technology transfer programme.
According to the minister, the industry’s long-term growth depends on its ability to develop and implement advanced technologies capable of competing in global markets. One of the key innovations presented was the SawitSCAN system, which uses artificial intelligence and imaging technology to automatically determine the ripeness of oil palm fruit bunches, improving efficiency at processing facilities.
To accelerate the commercialization of innovations, the Malaysian Palm Oil Board introduced nine new technologies aimed at creating additional value across the entire palm oil supply chain. The industry increasingly views palm oil not only as a food product but also as a raw material for functional foods, health supplements, specialty chemicals, and even cooling solutions for data centres.
Among the new developments are palm-based meat alternatives, dietary fibre products, and technologies designed to enhance vitamin E absorption in the human body. These innovations are intended to meet growing consumer demand for products that combine nutritional value with additional health benefits.
Environmental sustainability is also a major focus. MPOB has introduced the MPOB F7 controlled-release fertilizer, which helps reduce nutrient losses and minimize environmental impacts. In addition, research is underway to develop disease-resistant oil palm varieties that could improve yields and strengthen Malaysia’s position as a global leader in innovative and sustainable palm oil production.
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https://ukragroconsult.com/en/news/malaysia-introduces-ai-and-innovations-in-palm-oil-production/
Indonesia's 50% biodiesel blending rate takes effect
By Reuters
JAKARTA, July 1 (Reuters) - Indonesia's new 50% biodiesel blending mandate took effect on Wednesday, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, even as stakeholders await a revised biodiesel allocation from the government.
In an effort to achieve energy independence, Indonesia increased the mandated blending rate to 50% from 40%, effective July 1. The programme, however, faces feasibility challenges in the wake of retreating crude oil prices and high prices of palm oil, which typically trades at a premium to diesel.
"Implementation (of B50) is proceeding in accordance with the applicable regulations," energy ministry official Noor Arifin Muhammad said in a text message.
While the government has provided a three-month transition period to allow fuel retailers to clear out B40 stocks according to a decree issued in June, producers must now deliver higher-quality palm-based diesel for retailers to blend into biodiesel.
The new standards include lower water content and longer oxidation stability than in B40.
While the higher blending rate is likely to increase demand, the government has not announced the amount of palm-based diesel that producers must supply to fuel retailers to mix with conventional diesel to make B50.
Under the B40 mandate, initially planned throughout 2026, the ministry had allocated 15.64 million kilolitres of biodiesel.
"The (new) allocation is not available yet. Yesterday we had a meeting with the energy ministry and they said it is still being prepared," said Catra De Thouars, vice chair of the Indonesian Biofuel Producers Association. "For now, we are using the old allocation as it can still be used."
Between January and April, 4.61 million kilolitres of biodiesel were distributed, energy ministry data shows.
https://www.reuters.com/world/asia-pacific/indonesias-50-biodiesel-blending-rate-takes-effect-2026-07-01/
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Indonesian Palm Oil Exports Up 7.71%, But Not Enough to Prevent Deficit
Jakarta. Indonesia reported Wednesday that palm oil shipments to foreign markets had jumped slightly to $9.59 billion in the first five months of 2026, but the uptick is not enough to feed the positive trade balance.
Indonesia registered $8.90 billion worth of palm oil exports from January to May of 2025, according to the central statistics agency BPS.
“This brings exports of crude palm oil and its derivatives up by 7.71%,” BPS deputy Ateng Hartono told a press conference.
From a volume standpoint, exports of palm oil products saw muted growth of 7.41% compared to the previous year. Indonesia had shipped around 8.30 million tons to overseas markets last year as of end-May, according to BPS. The volume then grew to 8.92 million tons.
The agency did not say which countries had a big appetite for Indonesian palm oil. However, a huge chunk of India-bound exports between January and May were goods categorized as “vegetable oils and animal fats”, reaching almost $1.2 billion. Palm oil belongs to this category.
All palm oil products have to go through Indonesia’s one-gate export system. But under the current transition period beginning early June, businesses only have to report their export documents to the state-run company Danantara Sumberdaya Indonesia (DSI). The latest statistics have not reflected the impact of this trade regime. However, some of Indonesia’s palm oil buyers — including Singapore, Egypt, and Pakistan — have called for a stable flow of this agrifood commodity. Indonesia leads the global supplies of palm oil.
Southeast Asia’s biggest economy has been betting on palm oil to lift its exports, but the increase is not enough to prevent Indonesia from being in the red. Indonesia has had a 72-month surplus since May 2020, but registered a $1.61 billion deficit in May 2026. Ateng had told the briefing that the negative trade balance came from the deficit in oil and gas trade.
"Singapore made up the lion's share of our oil and gas imports, reaching $5.1 billion between January and May," he explained.
Iran’s Strait of Hormuz closure following a US-Israeli surprise attack in late February has driven up oil prices. Major Middle Eastern oil producers have used this narrow waterway to bring energy to customers around the world.
https://jakartaglobe.id/business/indonesian-palm-oil-exports-up-771-but-not-enough-to-prevent-deficit
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Indonesia Faces Rising Pressure on Confidence and FX Buffers
Fitch Ratings-Hong Kong-01 July 2026: Bank Indonesia’s (BI) recent rate hikes underscore a strong resolve to countering depreciation pressure on the rupiah following the government’s announcement of plans to centralise commodity exports, Fitch Ratings says. The central bank raised its benchmark policy rate three times in about a month, by a cumulative 100bp to 5.75%, to support the currency and shore up investor confidence amid domestic market volatility driven by external headwinds and investor concerns over policy credibility, fiscal discipline and capital market governance.
External pressure has become more visible in a narrower goods trade surplus and rupiah weakness. The rupiah has underperformed most peer currencies so far this year, while gross international reserves fell by 4.6% between March and May. The rupiah regained some ground after rate hikes and other stabilisation measures. Fitch projects reserves to cover 4.9 months of current external payments in 2026, slightly below the ‘BBB’ median of 5.0 months. The decline primarily reflects a weaker term of trade from higher global energy prices, BI’s intervention to support the rupiah and external debt servicing. When Fitch revised the Outlook on Indonesia’s sovereign rating to Negative from Stable in early March 2026, it highlighted the risk of further external pressures stemming from fragile investor sentiment, which could raise the government’s borrowing costs and erode external buffers.
BI’s FX intervention reduces reserves and absorbs rupiah liquidity, tightening domestic funding conditions and reinforcing the credit impact of weaker investor sentiment. It has also contributed to a gradual build-up of net short foreign-currency positions, which reached nearlyUSD27 billion at end-May and could increase future FX liquidity needs as they mature. A sustained and sharp decline in FX reserves, particularly if driven by persistent capital outflows linked to weaker investor confidence or further weakening in governance indicators, could add pressure on the sovereign rating.
Lower global oil prices should help ease strains on Indonesia’s public finances and external position. However, it remains uncertain whether the 60-day ceasefire extension in the Iran war will hold, while the recent youth-led protests in Indonesia may increase spending pressures. Fragile investor sentiment could also weigh further on external buffers, underscoring the importance of sustained and effective execution of measures to address investor concerns over capital market transparency.
https://www.fitchratings.com/research/sovereigns/indonesia-faces-rising-pressure-on-confidence-fx-buffers-01-07-2026
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Deforestation still haunts Indonesia’s national parks
The most protected conservation areas in Indonesia face dangers that threaten their tree cover.
SEBANGAU, CENTRAL KALIMANTAN – Despite having the highest conservation status, many national parks are still suffering from forest destruction, raising questions about commitments from various authorities to preserve the country’s remaining woodlands.
Deforestation is persistent in Indonesia, and it has been on the rise in recent years. According to environmental NGO Auriga Nusantara, more than 430,000 hectares of forest were cleared in 2025. The figure, nearly the same size as seven Jakartas, nearly doubled the amount in 2024.
Of the total figure, around 25,000 ha of cleared forests were located in conservation areas, including national parks like Sebangau in Central Kalimantan, home to peat ecosystems and the critically endangered Bornean orangutan that has been enduring decades of deforestation.
But nearly 2,000 ha of the park and its surrounding zone were cleared to make way for oil palm plantations in 2024, according to Auriga. The clearing was the sixth-largest oil palm encroachment among 57 national parks in the country.
Existing regulations prohibit any conversion of forest land inside a national park for plantations or other purposes. Even indigenous people and local communities are only allowed to utilize land inside national parks under tight limitations without massively clearing tree cover.
In our latest special report, The Jakarta Post visited Sebangau to see parts of the national park that has been plagued by deforestation, part of which is the result of illegal oil palm plantations opened within the park’s borders.
These plantations, some of which are reportedly owned by local smallholders, feed a mill that produces crude palm oil (CPO) for various companies, including multinational ones that previously committed not to use ingredients linked to deforestation.
But oil palm plantations are just the tip of the iceberg in Sebangau.
Tenurial conflicts between park management and an indigenous Dayak subtribe that has been living around Sebangau for generations led to the opening of dozens of illegal gold mining sites across Sebangau.
Authorities acknowledged the persisting encroachment in Sebangau and other national parks, pointing to a lack of forest rangers to enforce regulations against illicit business activities.
To solve the law enforcement gap, the government created a task force to eradicate these illegal oil palm plantations and mining sites, including in Sebangau where officers have reclaimed nearly 1,500 ha of plantations to be reforested.
However, observers have been skeptical about the plan, arguing that law enforcement alone will not be sufficient to recover the degraded forest without a proper plan to address the root of the problems.
Saving Sebangau and other national parks, they said, will require the government to sit down and work together with all involved parties, including indigenous people, to look for sustainable solutions.
https://asianews.network/deforestation-still-haunts-indonesias-national-parks/
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Malaysia introduces AI and innovations in palm oil production
Malaysia’s palm oil industry is shifting from a model focused primarily on raw material production toward the development of innovative technologies and high-value-added products. This was stated by Noraini Ahmad during the Malaysian Palm Oil Board’s technology transfer programme.
According to the minister, the industry’s long-term growth depends on its ability to develop and implement advanced technologies capable of competing in global markets. One of the key innovations presented was the SawitSCAN system, which uses artificial intelligence and imaging technology to automatically determine the ripeness of oil palm fruit bunches, improving efficiency at processing facilities.
To accelerate the commercialization of innovations, the Malaysian Palm Oil Board introduced nine new technologies aimed at creating additional value across the entire palm oil supply chain. The industry increasingly views palm oil not only as a food product but also as a raw material for functional foods, health supplements, specialty chemicals, and even cooling solutions for data centres.
Among the new developments are palm-based meat alternatives, dietary fibre products, and technologies designed to enhance vitamin E absorption in the human body. These innovations are intended to meet growing consumer demand for products that combine nutritional value with additional health benefits.
Environmental sustainability is also a major focus. MPOB has introduced the MPOB F7 controlled-release fertilizer, which helps reduce nutrient losses and minimize environmental impacts. In addition, research is underway to develop disease-resistant oil palm varieties that could improve yields and strengthen Malaysia’s position as a global leader in innovative and sustainable palm oil production.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
https://ukragroconsult.com/en/news/malaysia-introduces-ai-and-innovations-in-palm-oil-production/
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July 01, 2026
EXCLUSIVE: EU to extend deforestation law to palm-derived chemicals
Draft also delays new product categories until 30 December 2027
The European Commission is preparing to expand the scope of the EU’s deforestation law to cover a wider range of palm-derived chemicals, according to a draft delegated act and an accompanying annex obtained by Euractiv.
The EU Deforestation Regulation (EUDR), which starts applying from the end of December, covers seven commodities – cattle, cocoa, coffee, oil palm, rubber, soy and wood – along with hundreds of derived products, from furniture and chocolate to beef and tyres. Companies importing or selling such goods into the EU will have to provide geolocation data to prove that the products are ‘deforestation-free’.
The draft delegated act sets out the final changes to the regulation’s product scope following a public consultation that closed on 1 June. It confirms earlier proposals to remove leather from the scope of the EUDR and to add soluble coffee.
Another key change is the expansion of palm oil derivatives covered by the regulation. The draft adds a range of oleochemicals used to manufacture products such as food emulsifiers, cosmetics and detergents, as well as palm-based soap.
According to the Commission, the changes are intended to ensure “consistency across the oleochemicals supply chain” and prevent companies from shifting deforestation risk to downstream products not currently covered by the regulation.
Palm-derived chemicals used to manufacture human and veterinary medicines would be exempt, along with waste palm oil derivatives used as feedstock for biofuels.
To give businesses and authorities time to adapt, the Commission proposes delaying the application of these newly added product categories until 30 December 2027.
Soybeans for sowing would likewise be excluded because they represent “negligible trade volumes” and could be contrary to the objectives of the upcoming EU protein strategy, which will be unveiled on 7 July,
The Commission said it ruled out removing products such as prepared beef and cocoa shells and husks, as demanded by some in the public consultation, concluding that they should remain in scope following its cost-benefit assessment.
It also declined requests to bring printed books, newspapers and other printed products back into the EUDR after lawmakers removed them from the regulation last year. The Commission said the environmental benefits of reintroducing those products were not sufficiently clear.
Once the Commission adopts the final text, the European Parliament and the Council will have two months to object before it takes effect.
https://www.euractiv.com/news/exclusive-eu-to-extend-deforestation-law-to-palm-derived-chemicals/
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EU adds palm oil for drugs, soy seeds to deforestation carve-out
Max Ramsay & Ewa Krukowska / Bloomberg
(June 30): The European Union (EU) plans to exempt palm oil derivatives used in medicines and soybeans used for sowing from its landmark rules tackling global deforestation in its latest attempt to blunt the law’s impact on sensitive sectors.
The carve-outs were among amendments added by the European Commission, the bloc’s executive arm, according to a draft seen by Bloomberg, which could still change ahead of its adoption.
The EU’s push against deforestation around the world has become one of the most challenging elements of its Green Deal plans. It is aimed at curbing forest clearance in nations that send agricultural products to the bloc. In December, the EU reached a deal to delay the law’s application by a year, until the end of 2026.
However, the law has faced fierce pushback for overreach and administrative burden. US Ambassador to the EU Andrew Puzder said in a post on X last week that the regulation is “not simplification” but “protectionism”.
The palm oil-for-medicines provision was added “to protect human and animal health”, while soy used for sowing is exempted in part to help protect “resilience, strategic autonomy and sustainability of the EU protein system”, the commission says in the draft, while noting they “represent negligible trade volumes”.
The commission’s legislative update follows a public consultation, after the commission proposed removing leather from the scope of the law in May. Leather is still exempted in the latest draft, though that provision will be subject to a review in 2030. There are also new carve-outs for aircraft and motor vehicle seats and conveyor belts.
See also: Indonesia biofuel push adds strain to producers, palm oil markets
The draft also adds a one-year delay — until the end of 2027 — for the law’s application for the updated products.
The European Commission declined to comment. It is expected to adopt the measure in the middle of July.
https://www.theedgesingapore.com/amp/news/palm-oil/eu-adds-palm-oil-drugs-soy-seeds-deforestation-carve-out?__cf_chl_f_tk=apbYI9CAQr9qVb2u7mXVT0kl57_ZJeILmbw448JCXZ8-1782899098-1.0.1.1-2x0_Yjgw1q3sXORqVYn_5fQ2qops2a7.MPXgj7Ej5wQ
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B50 Mandate Starts July 01: IESR Urges Government to Reassess the Risks
Jakarta, June 30, 2026 – As the Indonesian government plans to implement the mandatory 50% biodiesel blend (B50) on July 1, 2026, the Institute for Essential Services Reform (IESR) reminds that this policy requires a comprehensive evaluation. The blending policy may be acceptable as a transitional strategy, particularly in the short term, especially to reduce diesel imports. However, B50 should not become the primary long-term energy transition strategy. Compared to implementing B50, transport electrification and the adoption of fuel efficiency standards are more effective strategies to achieve energy security and energy independence.
IESR’s Chief Executive Officer (CEO), Fabby Tumiwa, said that every policy comes with impacts and costs. The accelerated implementation of the B50 policy was introduced during the energy crisis following the closure of the Strait of Hormuz at the end of February, which caused oil prices to surge and disrupted Indonesia’s oil imports.
“The government needs to assess the implementation of B50 comprehensively, not only in terms of reducing diesel imports, but also its impacts on costs, feedstock supply, food prices, smallholder farmers, and the environment,” said Fabby.
IESR also warns of cross-sector trade-offs from expanding the biodiesel mandate. The increased demand for crude palm oil (CPO) to support B50 could affect feedstock availability for the food sector, cooking oil prices, inflation, and the welfare of smallholder farmers. In addition, the rising demand for feedstock must be anticipated to ensure it does not create further pressure on environmental carrying capacity and land governance.
IESR believes that the economic rationale for implementing B50 needs to be re-evaluated because the underlying conditions have changed. Global oil prices and the risk of oil import disruptions have declined, import supply diversification has begun, and domestic diesel production, including from the Balikpapan Refinery, has started operating.
On the other hand, crude palm oil (CPO) prices remain at a high level. This condition could increase the cost of implementing B50, particularly if the price gap between biodiesel and diesel widens. Therefore, the government needs to recalculate the financial burden of this policy and ensure clear mitigation strategies before expanding its implementation.
IESR’s analysis shows that electrification can reduce dependence on imported fuels, lower emissions, and strengthen energy independence if electricity supply increasingly comes from renewable energy. Based on IESR’s modeling, the adoption of battery electric vehicles (BEVs) could reduce carbon dioxide emissions by 46 million tonnes by 2060. The impact would be even more significant if combined with a vehicle age limitation policy. This effort is projected to increase electric vehicle adoption to around 66 million electric cars and 143 million electric motorcycles, while reducing emissions by up to 210 million tonnes by 2060. In addition, increasing the share of public transportation from the current 16 percent to 40 percent of total passenger trips could reduce carbon dioxide emissions by up to 101 million tonnes by 2060.
Meanwhile, IESR’s analysis also shows that increasing the biodiesel mandate to B60 is projected to reduce emissions by around 88 million tonnes by 2060. However, this estimation does not account for emissions resulting from land-use change. These findings confirm that biodiesel implementation alone would have a relatively smaller impact on emissions reduction.
The government also needs to ensure that the biodiesel policy does not divert attention from a more structural energy transition agenda. In the long term, transport decarbonization requires a stronger combination of policies, including accelerating electric vehicle adoption, improving public transportation, implementing vehicle fuel efficiency standards, expanding renewable energy, and providing widespread charging infrastructure.
IESR encourages the government to conduct an open evaluation of the benefits, costs, and risks of implementing B50. This evaluation is important to ensure that energy policy not only responds to short-term circumstances but is also aligned with decarbonization targets, energy security, price stability, and public welfare.
“Energy policies must be designed so that they do not create new burdens for the public or other sectors,” Fabby emphasized.
https://iesr.or.id/en/b50-mandate-starts-tomorrow-iesr-urges-government-to-reassess-the-risks/
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Indonesia's biofuel mandate faces test after global oil prices tumble
Summary
JAKARTA, June 30 (Reuters) - Indonesia is to start its national B50 fuel mandate, a blend of 50% palm-based diesel and 50% conventional diesel, on Wednesday as part of its push for energy independence, but slumping oil prices and costlier palm oil threaten its viability, analysts say.
The plan to alter the mix of the blend, among the world's boldest attempts to substitute imported diesel with domestically produced biofuel, to 50% bio-diesel from 40% was revived in response to a spike in crude prices following the outbreak of the Iran war after being shelved in January due to tight funding.
Indonesia will no longer have to import diesel from this year, Energy Minister Bahlil Lahadalia said last week.
However, Brent crude futures slid for a third straight month in June, down 21% to about $73 a barrel, on rising supply following an interim peace deal between the U.S. and Iran. Palm oil prices have remained elevated, supported by expectations of stronger biofuel demand.
These factors led palm oil to become more than $260 per metric ton more expensive than diesel in June, potentially eroding the economics that underpinned the policy shift.
"The real test now is whether the government can sustain the higher feedstock and funding requirements of B50," said Aryan Mithiborwala, biofuels analyst at Rystad Energy.
https://www.reuters.com/business/energy/indonesias-biofuel-mandate-faces-test-after-global-oil-prices-tumble-2026-06-30/
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B50 cuts fuel imports, but subsidy burden could rise?
JAKARTA - Indonesia's mandatory B50 biodiesel programme officially began implementation on Wednesday (2/7/2026).
The policy, which increases the palm oil-based biodiesel blending ratio to 50%, is expected to strengthen national energy security and reduce dependence on diesel imports.
However, the implementation of B50 faces new challenges after global oil prices fell sharply following the easing of the Iran conflict, while crude palm oil (CPO) prices remain elevated.
The situation could increase subsidy requirements to keep the programme running.
As cited by Reuters, the government revived plans to implement B50 after oil prices surged due to the Iran war. The policy had been postponed earlier this year due to funding constraints.
Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia would no longer need to import diesel starting this year thanks to the implementation of the biodiesel programme.
On the other hand, Brent crude prices fell around 21% throughout June to around USD 73 per barrel as global supply increased following a temporary peace agreement between the United States and Iran.
In contrast, CPO prices remain high, driven by expectations of higher demand for biodiesel.
The situation pushed palm oil prices to more than USD 260 per tonne above diesel prices in June, narrowing the economics of the B50 programme.
Biofuel analyst at Rystad Energy Aryan Mithiborwala said the main challenge now lies in the government's ability to maintain sustainable funding for the programme.
"The real test now is whether the government can meet the higher raw material and funding requirements for B50 sustainably."
He added that the sustainability of the policy would depend heavily on the price gap between biodiesel and diesel to ensure subsidy needs remain under control.
"The continuation of this policy will depend on whether the price gap between biodiesel and diesel remains narrow enough so that subsidy costs can still be controlled, even after the oil price surge caused by the conflict has eased."
The B50 mandate will apply to public transport, trucks, heavy equipment, agricultural machinery, ships and diesel-fired power plants.
Pressure on subsidy funds
So far, the government has covered the price gap between biodiesel and diesel using palm oil export levy funds managed by the Palm Oil Plantation Fund Management Agency (BPDP).
Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, said that under current price conditions, subsidies are still needed because CPO prices are significantly higher than crude oil.
"As long as the Plantation Fund has sufficient reserves, it will not be a problem. However, if the fund is insufficient for subsidies, the government will ultimately have to cover the shortfall."
Meanwhile, Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said higher domestic consumption could reduce Indonesia's palm oil exports. This could pressure export levy revenues, which have so far been the main source of biodiesel subsidy funding.
Wood Mackenzie researcher Bohao Yao also said the sustainability of the programme depends heavily on sufficient subsidy funds.
"The main constraint remains the subsidy funds, which are financed by CPO export levies."
According to him, increasing the biodiesel blend to B50 would absorb more CPO for domestic needs, potentially reducing export levy revenues while subsidy requirements increase.
Lower imports, but risks export pressure
The Energy and Mineral Resources Ministry estimates that B50 implementation could save around IDR 157.28 trillion in fuel imports in 2026, higher than the potential savings of around IDR 139.8 trillion under the B40 scheme.
Nevertheless, increased domestic CPO consumption is expected to tighten global vegetable oil supplies and potentially drive up food prices.
Based on projections from the Energy and Mineral Resources Ministry, biodiesel consumption could reach around 20.1 million kilolitres if the B50 mandate is implemented for a full year.
Meanwhile, Energy and Mineral Resources Minister Bahlil Lahadalia said the government would continue implementing its energy strategy cautiously despite improving global oil supplies following the temporary agreement between the United States and Iran.
The government has chosen to prepare for the worst-case scenario if energy market volatility continues until the end of the year.
https://www.idnfinancials.com/news/65444/b50-cuts-fuel-imports-but-subsidy-burden-could-rise
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Indonesia biofuel push adds strain to producers, palm oil markets
By Eko Listiyorini & Kanupriya Kapoor / Bloomberg
(June 30): The rollout of a pioneering palm-diesel blend is set to stretch Indonesian biofuel makers to their limits and tighten global supplies of the tropical oil by diverting it away from export markets.
The world’s largest palm oil producer is adopting its B50 mandate this week, months ahead of schedule, in a move that aligns with President Prabowo Subianto’s push for enhanced energy security. The ambitious programme is being watched by other crop-rich nations, from Malaysia to Brazil, that are also seeking to cut reliance on fossil fuels.
But Indonesian biofuel producers have expressed concern about their ability to sustain higher output through the whole of next year. With the latest mandate requiring that biofuels make up 50% of the diesel blend, up from 40% previously, a significant ramp-up in output will be needed.
“On paper, current installed capacity is enough — but all plants must run at around 90% utilisation, with no unplanned outages,” said Catra de Thouars, vice-chairman of the Indonesian Biofuel Producer Association. Meeting B50 demand through 2027 will be “rather difficult without capacity expansion”, he said.
By some distance, Indonesia is already the global leader in terms of the proportion of biofuels in its diesel mix. The B50 rollout was fast-tracked in part because of the US-Iran war, which sent fuel prices soaring for countries that rely largely on imported energy. In Indonesia’s case, a plunging rupiah has made imports even more expensive.
An interim peace deal in the Middle East hasn’t derailed the plan. Fuel retailers will have three months to clear their B40 stockpiles and must start selling the higher blend by Oct 1, an energy ministry official said last week. That followed a series of road trials that showed the latest blend can operate at varied altitudes and temperatures.
To meet the new target, biofuel producers face several urgent challenges. For one, it has become more difficult to source methanol, an essential blending input that’s imported mainly from the Middle East. The additive is still available, said de Thouars, but producers are struggling to secure long-term contracts because of lingering concerns over the conflict.
Added to that, supplies of palm oil itself are expected to come under pressure next year. While the country’s output is forecast to rise by about 10% this year, production in 2027 will be affected by limited replanting and the lingering effects of a powerful El Niño weather phenomenon, said M. Hadi Sugeng Wahyudiono, secretary general of the Indonesian Palm Oil Association.
For Southeast Asia’s biggest economy, the B50 rollout is a double-edged sword. By keeping more palm oil at home, Indonesia can shore up its energy supplies, but it will also forgo lucrative export earnings that could otherwise help soothe stretched public finances and a crisis of investor confidence.
It’s a tradeoff that central bank researchers have previously said could bring diminishing returns. While blending at moderate levels reduces import dependence, “higher mandates generate increasing macroeconomic and fiscal costs”, researchers at Bank Indonesia said in a working paper last year. “For B50–B70, foregone crude palm oil export revenues systematically exceed diesel import savings,” they wrote.
Indonesia has yet to finalise its domestic palm oil allocation for the year but the association — known as Gapki — expects the government to channel some 15 million tons of the feedstock to biodiesel. That’s about 20% more than last year — leaving less available for export, even allowing for a modest increase in output.
Higher palm oil prices as a result of this lower availability risk adding to food inflation, with the tropical commodity used in scores of products across grocery-store shelves.
“In a normal crop year, the cost of pursuing greater energy independence looks manageable,” said Khor Yu Leng, an economist at Segi Enam Advisors in Singapore. “After a more severe El Niño year, pressure could show up across fuel, food, and export channels at the same time,” she said.
Traders are already exploring alternative markets to make up the shortfall. “Soon you’ll start to see major buyers like India, Pakistan, African countries getting worried and starting to look at other sources, or switching to rivals like soy oil,” said Sathia Varqa, an analyst at Fastmarkets Palm Oil Analytics.
https://theedgemalaysia.com/node/808780
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Palm oil's future in Malaysia hinges on innovation: Noraini Ahmad
BANGI: Malaysia's oil palm industry can no longer rely solely on commodity production and must increasingly be driven by technology, innovation and the commercialisation of high-value products.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said the industry's long-term growth lies in its ability to develop technologies, produce higher value products and accelerate the commercialisation of homegrown innovations capable of competing globally.
"The future of the oil palm industry no longer relies solely on commodity production," she said at the Malaysian Palm Oil Board (MPOB) Transfer of Technology (TOT) Programme 2026 here today.
Among the technologies introduced was SawitSCAN, an artificial intelligence (AI) and imaging based system that automatically identifies the ripeness of fresh fruit bunches quickly and accurately.
Noraini said the technology could reduce reliance on subjective manual inspections, speed up fruit grading, improve operational efficiency at palm oil mills and enhance the productivity and competitiveness of Malaysia's oil palm industry.
The event also marked another milestone for the industry with MPOB launching nine new technologies aimed at accelerating commercialisation and creating greater value across the palm oil supply chain.
The board said the new technologies reflect the industry's shift beyond traditional edible oil production, with palm oil increasingly being developed as a feedstock for future food products, nutraceuticals, high value oleochemicals and data centre cooling technologies.
The innovations are expected to strengthen Malaysia's position as a global leader in palm oil innovation while supporting the industry's transition towards higher value, technology driven applications.
https://www.nst.com.my/business/economy/2026/06/1476761/palm-oils-future-hinges-innovation-noraini-ahmad
EXCLUSIVE: EU to extend deforestation law to palm-derived chemicals
Draft also delays new product categories until 30 December 2027
The European Commission is preparing to expand the scope of the EU’s deforestation law to cover a wider range of palm-derived chemicals, according to a draft delegated act and an accompanying annex obtained by Euractiv.
The EU Deforestation Regulation (EUDR), which starts applying from the end of December, covers seven commodities – cattle, cocoa, coffee, oil palm, rubber, soy and wood – along with hundreds of derived products, from furniture and chocolate to beef and tyres. Companies importing or selling such goods into the EU will have to provide geolocation data to prove that the products are ‘deforestation-free’.
The draft delegated act sets out the final changes to the regulation’s product scope following a public consultation that closed on 1 June. It confirms earlier proposals to remove leather from the scope of the EUDR and to add soluble coffee.
Another key change is the expansion of palm oil derivatives covered by the regulation. The draft adds a range of oleochemicals used to manufacture products such as food emulsifiers, cosmetics and detergents, as well as palm-based soap.
According to the Commission, the changes are intended to ensure “consistency across the oleochemicals supply chain” and prevent companies from shifting deforestation risk to downstream products not currently covered by the regulation.
Palm-derived chemicals used to manufacture human and veterinary medicines would be exempt, along with waste palm oil derivatives used as feedstock for biofuels.
To give businesses and authorities time to adapt, the Commission proposes delaying the application of these newly added product categories until 30 December 2027.
Soybeans for sowing would likewise be excluded because they represent “negligible trade volumes” and could be contrary to the objectives of the upcoming EU protein strategy, which will be unveiled on 7 July,
The Commission said it ruled out removing products such as prepared beef and cocoa shells and husks, as demanded by some in the public consultation, concluding that they should remain in scope following its cost-benefit assessment.
It also declined requests to bring printed books, newspapers and other printed products back into the EUDR after lawmakers removed them from the regulation last year. The Commission said the environmental benefits of reintroducing those products were not sufficiently clear.
Once the Commission adopts the final text, the European Parliament and the Council will have two months to object before it takes effect.
https://www.euractiv.com/news/exclusive-eu-to-extend-deforestation-law-to-palm-derived-chemicals/
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EU adds palm oil for drugs, soy seeds to deforestation carve-out
Max Ramsay & Ewa Krukowska / Bloomberg
(June 30): The European Union (EU) plans to exempt palm oil derivatives used in medicines and soybeans used for sowing from its landmark rules tackling global deforestation in its latest attempt to blunt the law’s impact on sensitive sectors.
The carve-outs were among amendments added by the European Commission, the bloc’s executive arm, according to a draft seen by Bloomberg, which could still change ahead of its adoption.
The EU’s push against deforestation around the world has become one of the most challenging elements of its Green Deal plans. It is aimed at curbing forest clearance in nations that send agricultural products to the bloc. In December, the EU reached a deal to delay the law’s application by a year, until the end of 2026.
However, the law has faced fierce pushback for overreach and administrative burden. US Ambassador to the EU Andrew Puzder said in a post on X last week that the regulation is “not simplification” but “protectionism”.
The palm oil-for-medicines provision was added “to protect human and animal health”, while soy used for sowing is exempted in part to help protect “resilience, strategic autonomy and sustainability of the EU protein system”, the commission says in the draft, while noting they “represent negligible trade volumes”.
The commission’s legislative update follows a public consultation, after the commission proposed removing leather from the scope of the law in May. Leather is still exempted in the latest draft, though that provision will be subject to a review in 2030. There are also new carve-outs for aircraft and motor vehicle seats and conveyor belts.
See also: Indonesia biofuel push adds strain to producers, palm oil markets
The draft also adds a one-year delay — until the end of 2027 — for the law’s application for the updated products.
The European Commission declined to comment. It is expected to adopt the measure in the middle of July.
https://www.theedgesingapore.com/amp/news/palm-oil/eu-adds-palm-oil-drugs-soy-seeds-deforestation-carve-out?__cf_chl_f_tk=apbYI9CAQr9qVb2u7mXVT0kl57_ZJeILmbw448JCXZ8-1782899098-1.0.1.1-2x0_Yjgw1q3sXORqVYn_5fQ2qops2a7.MPXgj7Ej5wQ
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B50 Mandate Starts July 01: IESR Urges Government to Reassess the Risks
Jakarta, June 30, 2026 – As the Indonesian government plans to implement the mandatory 50% biodiesel blend (B50) on July 1, 2026, the Institute for Essential Services Reform (IESR) reminds that this policy requires a comprehensive evaluation. The blending policy may be acceptable as a transitional strategy, particularly in the short term, especially to reduce diesel imports. However, B50 should not become the primary long-term energy transition strategy. Compared to implementing B50, transport electrification and the adoption of fuel efficiency standards are more effective strategies to achieve energy security and energy independence.
IESR’s Chief Executive Officer (CEO), Fabby Tumiwa, said that every policy comes with impacts and costs. The accelerated implementation of the B50 policy was introduced during the energy crisis following the closure of the Strait of Hormuz at the end of February, which caused oil prices to surge and disrupted Indonesia’s oil imports.
“The government needs to assess the implementation of B50 comprehensively, not only in terms of reducing diesel imports, but also its impacts on costs, feedstock supply, food prices, smallholder farmers, and the environment,” said Fabby.
IESR also warns of cross-sector trade-offs from expanding the biodiesel mandate. The increased demand for crude palm oil (CPO) to support B50 could affect feedstock availability for the food sector, cooking oil prices, inflation, and the welfare of smallholder farmers. In addition, the rising demand for feedstock must be anticipated to ensure it does not create further pressure on environmental carrying capacity and land governance.
IESR believes that the economic rationale for implementing B50 needs to be re-evaluated because the underlying conditions have changed. Global oil prices and the risk of oil import disruptions have declined, import supply diversification has begun, and domestic diesel production, including from the Balikpapan Refinery, has started operating.
On the other hand, crude palm oil (CPO) prices remain at a high level. This condition could increase the cost of implementing B50, particularly if the price gap between biodiesel and diesel widens. Therefore, the government needs to recalculate the financial burden of this policy and ensure clear mitigation strategies before expanding its implementation.
IESR’s analysis shows that electrification can reduce dependence on imported fuels, lower emissions, and strengthen energy independence if electricity supply increasingly comes from renewable energy. Based on IESR’s modeling, the adoption of battery electric vehicles (BEVs) could reduce carbon dioxide emissions by 46 million tonnes by 2060. The impact would be even more significant if combined with a vehicle age limitation policy. This effort is projected to increase electric vehicle adoption to around 66 million electric cars and 143 million electric motorcycles, while reducing emissions by up to 210 million tonnes by 2060. In addition, increasing the share of public transportation from the current 16 percent to 40 percent of total passenger trips could reduce carbon dioxide emissions by up to 101 million tonnes by 2060.
Meanwhile, IESR’s analysis also shows that increasing the biodiesel mandate to B60 is projected to reduce emissions by around 88 million tonnes by 2060. However, this estimation does not account for emissions resulting from land-use change. These findings confirm that biodiesel implementation alone would have a relatively smaller impact on emissions reduction.
The government also needs to ensure that the biodiesel policy does not divert attention from a more structural energy transition agenda. In the long term, transport decarbonization requires a stronger combination of policies, including accelerating electric vehicle adoption, improving public transportation, implementing vehicle fuel efficiency standards, expanding renewable energy, and providing widespread charging infrastructure.
IESR encourages the government to conduct an open evaluation of the benefits, costs, and risks of implementing B50. This evaluation is important to ensure that energy policy not only responds to short-term circumstances but is also aligned with decarbonization targets, energy security, price stability, and public welfare.
“Energy policies must be designed so that they do not create new burdens for the public or other sectors,” Fabby emphasized.
https://iesr.or.id/en/b50-mandate-starts-tomorrow-iesr-urges-government-to-reassess-the-risks/
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Indonesia's biofuel mandate faces test after global oil prices tumble
Summary
- Rystad says B50 hinges on keeping biodiesel subsidies affordable as oil retreats
- Indonesia expects the 2026 biodiesel mandate to cut fuel import costs by about 157.28 trillion rupiah
- Higher domestic biodiesel demand could cut palm oil exports and levy income, industry officials said
- A full-year B50 mandate would raise biodiesel consumption to as much as 20.1 million kilolitres
JAKARTA, June 30 (Reuters) - Indonesia is to start its national B50 fuel mandate, a blend of 50% palm-based diesel and 50% conventional diesel, on Wednesday as part of its push for energy independence, but slumping oil prices and costlier palm oil threaten its viability, analysts say.
The plan to alter the mix of the blend, among the world's boldest attempts to substitute imported diesel with domestically produced biofuel, to 50% bio-diesel from 40% was revived in response to a spike in crude prices following the outbreak of the Iran war after being shelved in January due to tight funding.
Indonesia will no longer have to import diesel from this year, Energy Minister Bahlil Lahadalia said last week.
However, Brent crude futures slid for a third straight month in June, down 21% to about $73 a barrel, on rising supply following an interim peace deal between the U.S. and Iran. Palm oil prices have remained elevated, supported by expectations of stronger biofuel demand.
These factors led palm oil to become more than $260 per metric ton more expensive than diesel in June, potentially eroding the economics that underpinned the policy shift.
"The real test now is whether the government can sustain the higher feedstock and funding requirements of B50," said Aryan Mithiborwala, biofuels analyst at Rystad Energy.
https://www.reuters.com/business/energy/indonesias-biofuel-mandate-faces-test-after-global-oil-prices-tumble-2026-06-30/
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B50 cuts fuel imports, but subsidy burden could rise?
JAKARTA - Indonesia's mandatory B50 biodiesel programme officially began implementation on Wednesday (2/7/2026).
The policy, which increases the palm oil-based biodiesel blending ratio to 50%, is expected to strengthen national energy security and reduce dependence on diesel imports.
However, the implementation of B50 faces new challenges after global oil prices fell sharply following the easing of the Iran conflict, while crude palm oil (CPO) prices remain elevated.
The situation could increase subsidy requirements to keep the programme running.
As cited by Reuters, the government revived plans to implement B50 after oil prices surged due to the Iran war. The policy had been postponed earlier this year due to funding constraints.
Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia would no longer need to import diesel starting this year thanks to the implementation of the biodiesel programme.
On the other hand, Brent crude prices fell around 21% throughout June to around USD 73 per barrel as global supply increased following a temporary peace agreement between the United States and Iran.
In contrast, CPO prices remain high, driven by expectations of higher demand for biodiesel.
The situation pushed palm oil prices to more than USD 260 per tonne above diesel prices in June, narrowing the economics of the B50 programme.
Biofuel analyst at Rystad Energy Aryan Mithiborwala said the main challenge now lies in the government's ability to maintain sustainable funding for the programme.
"The real test now is whether the government can meet the higher raw material and funding requirements for B50 sustainably."
He added that the sustainability of the policy would depend heavily on the price gap between biodiesel and diesel to ensure subsidy needs remain under control.
"The continuation of this policy will depend on whether the price gap between biodiesel and diesel remains narrow enough so that subsidy costs can still be controlled, even after the oil price surge caused by the conflict has eased."
The B50 mandate will apply to public transport, trucks, heavy equipment, agricultural machinery, ships and diesel-fired power plants.
Pressure on subsidy funds
So far, the government has covered the price gap between biodiesel and diesel using palm oil export levy funds managed by the Palm Oil Plantation Fund Management Agency (BPDP).
Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, said that under current price conditions, subsidies are still needed because CPO prices are significantly higher than crude oil.
"As long as the Plantation Fund has sufficient reserves, it will not be a problem. However, if the fund is insufficient for subsidies, the government will ultimately have to cover the shortfall."
Meanwhile, Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said higher domestic consumption could reduce Indonesia's palm oil exports. This could pressure export levy revenues, which have so far been the main source of biodiesel subsidy funding.
Wood Mackenzie researcher Bohao Yao also said the sustainability of the programme depends heavily on sufficient subsidy funds.
"The main constraint remains the subsidy funds, which are financed by CPO export levies."
According to him, increasing the biodiesel blend to B50 would absorb more CPO for domestic needs, potentially reducing export levy revenues while subsidy requirements increase.
Lower imports, but risks export pressure
The Energy and Mineral Resources Ministry estimates that B50 implementation could save around IDR 157.28 trillion in fuel imports in 2026, higher than the potential savings of around IDR 139.8 trillion under the B40 scheme.
Nevertheless, increased domestic CPO consumption is expected to tighten global vegetable oil supplies and potentially drive up food prices.
Based on projections from the Energy and Mineral Resources Ministry, biodiesel consumption could reach around 20.1 million kilolitres if the B50 mandate is implemented for a full year.
Meanwhile, Energy and Mineral Resources Minister Bahlil Lahadalia said the government would continue implementing its energy strategy cautiously despite improving global oil supplies following the temporary agreement between the United States and Iran.
The government has chosen to prepare for the worst-case scenario if energy market volatility continues until the end of the year.
https://www.idnfinancials.com/news/65444/b50-cuts-fuel-imports-but-subsidy-burden-could-rise
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Indonesia biofuel push adds strain to producers, palm oil markets
By Eko Listiyorini & Kanupriya Kapoor / Bloomberg
(June 30): The rollout of a pioneering palm-diesel blend is set to stretch Indonesian biofuel makers to their limits and tighten global supplies of the tropical oil by diverting it away from export markets.
The world’s largest palm oil producer is adopting its B50 mandate this week, months ahead of schedule, in a move that aligns with President Prabowo Subianto’s push for enhanced energy security. The ambitious programme is being watched by other crop-rich nations, from Malaysia to Brazil, that are also seeking to cut reliance on fossil fuels.
But Indonesian biofuel producers have expressed concern about their ability to sustain higher output through the whole of next year. With the latest mandate requiring that biofuels make up 50% of the diesel blend, up from 40% previously, a significant ramp-up in output will be needed.
“On paper, current installed capacity is enough — but all plants must run at around 90% utilisation, with no unplanned outages,” said Catra de Thouars, vice-chairman of the Indonesian Biofuel Producer Association. Meeting B50 demand through 2027 will be “rather difficult without capacity expansion”, he said.
By some distance, Indonesia is already the global leader in terms of the proportion of biofuels in its diesel mix. The B50 rollout was fast-tracked in part because of the US-Iran war, which sent fuel prices soaring for countries that rely largely on imported energy. In Indonesia’s case, a plunging rupiah has made imports even more expensive.
An interim peace deal in the Middle East hasn’t derailed the plan. Fuel retailers will have three months to clear their B40 stockpiles and must start selling the higher blend by Oct 1, an energy ministry official said last week. That followed a series of road trials that showed the latest blend can operate at varied altitudes and temperatures.
To meet the new target, biofuel producers face several urgent challenges. For one, it has become more difficult to source methanol, an essential blending input that’s imported mainly from the Middle East. The additive is still available, said de Thouars, but producers are struggling to secure long-term contracts because of lingering concerns over the conflict.
Added to that, supplies of palm oil itself are expected to come under pressure next year. While the country’s output is forecast to rise by about 10% this year, production in 2027 will be affected by limited replanting and the lingering effects of a powerful El Niño weather phenomenon, said M. Hadi Sugeng Wahyudiono, secretary general of the Indonesian Palm Oil Association.
For Southeast Asia’s biggest economy, the B50 rollout is a double-edged sword. By keeping more palm oil at home, Indonesia can shore up its energy supplies, but it will also forgo lucrative export earnings that could otherwise help soothe stretched public finances and a crisis of investor confidence.
It’s a tradeoff that central bank researchers have previously said could bring diminishing returns. While blending at moderate levels reduces import dependence, “higher mandates generate increasing macroeconomic and fiscal costs”, researchers at Bank Indonesia said in a working paper last year. “For B50–B70, foregone crude palm oil export revenues systematically exceed diesel import savings,” they wrote.
Indonesia has yet to finalise its domestic palm oil allocation for the year but the association — known as Gapki — expects the government to channel some 15 million tons of the feedstock to biodiesel. That’s about 20% more than last year — leaving less available for export, even allowing for a modest increase in output.
Higher palm oil prices as a result of this lower availability risk adding to food inflation, with the tropical commodity used in scores of products across grocery-store shelves.
“In a normal crop year, the cost of pursuing greater energy independence looks manageable,” said Khor Yu Leng, an economist at Segi Enam Advisors in Singapore. “After a more severe El Niño year, pressure could show up across fuel, food, and export channels at the same time,” she said.
Traders are already exploring alternative markets to make up the shortfall. “Soon you’ll start to see major buyers like India, Pakistan, African countries getting worried and starting to look at other sources, or switching to rivals like soy oil,” said Sathia Varqa, an analyst at Fastmarkets Palm Oil Analytics.
https://theedgemalaysia.com/node/808780
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Palm oil's future in Malaysia hinges on innovation: Noraini Ahmad
BANGI: Malaysia's oil palm industry can no longer rely solely on commodity production and must increasingly be driven by technology, innovation and the commercialisation of high-value products.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said the industry's long-term growth lies in its ability to develop technologies, produce higher value products and accelerate the commercialisation of homegrown innovations capable of competing globally.
"The future of the oil palm industry no longer relies solely on commodity production," she said at the Malaysian Palm Oil Board (MPOB) Transfer of Technology (TOT) Programme 2026 here today.
Among the technologies introduced was SawitSCAN, an artificial intelligence (AI) and imaging based system that automatically identifies the ripeness of fresh fruit bunches quickly and accurately.
Noraini said the technology could reduce reliance on subjective manual inspections, speed up fruit grading, improve operational efficiency at palm oil mills and enhance the productivity and competitiveness of Malaysia's oil palm industry.
The event also marked another milestone for the industry with MPOB launching nine new technologies aimed at accelerating commercialisation and creating greater value across the palm oil supply chain.
The board said the new technologies reflect the industry's shift beyond traditional edible oil production, with palm oil increasingly being developed as a feedstock for future food products, nutraceuticals, high value oleochemicals and data centre cooling technologies.
The innovations are expected to strengthen Malaysia's position as a global leader in palm oil innovation while supporting the industry's transition towards higher value, technology driven applications.
https://www.nst.com.my/business/economy/2026/06/1476761/palm-oils-future-hinges-innovation-noraini-ahmad
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