Palm oil news April 2026
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April 19, 2026
Indonesia's exports remain strong amidst global turmoil
Nganjuk, E. Java (ANTARA) - Indonesia Eximbank stated that national export activities remain strong amidst the ongoing geopolitical turmoil triggered by the Middle East conflict.
"Right now, up to the latest stage, all of our pipelines are still ongoing, still running well,” Indonesia Eximbank managing director of business II, Sulaeman, said during a media visit in Gresik, East Java, on Friday.
To maintain export performance, the government relies on the Special Export Assignment (PKE) program, which provides comprehensive financing support, from pre-export to post-export stages, as well as guarantee facilities for businesses.
In addition, Indonesia Eximbank is taking anticipatory measures through stress testing of its export financing portfolio to identify the most impacted sectors and borrowers, particularly those with exposure to the Middle East.
Amidst current geopolitical uncertainty, the institution is closely monitoring the impact of global supply chain disruptions and the weakening rupiah, which could potentially impact borrower performance.
Various mitigation measures have been prepared, including ensuring the selection of financing products with clear underlying transactions, for both pre-shipment and post-shipment financing.
Sulaeman further detailed that Indonesia Eximbank’s current primary mandate is to encourage increased national exports through two financing schemes, including PKE for economic financing and commercial financing.
Each financing under the PKE scheme has a significant multiplier effect, where every rupiah disbursed can create up to a threefold development impact.
Overall, the value of PKE financing currently reaches Rp13.7 trillion (US$801.06 million), spread across six programs and seven projects.
By 2025, the PKE Trade Finance facility has a total limit of Rp3.35 trillion (US$195.82 million), with disbursements reaching Rp7.68 trillion (US$448.88 million) throughout the year.
The processed food sector was the largest contributor to the portfolio, accounting for 39 percent, encompassing 31 borrowers.
Overall, the program has reached 18 industrial sectors, including rubber, coffee, furniture, footwear, textiles, jewelry, tea and spices, and electronics.
"In addition to providing financial support to businesses, PKE Trade Finance also plays a role in encouraging development impact,” Sulaeman noted.
Throughout 2025, PKE Trade Finance disbursements contributed to the creation and/or savings of Rp21.12 trillion (US$1.23 billion) in foreign exchange.
However, Sulaeman reminded businesses to remain vigilant about the continued impact of global turmoil, particularly rising raw material prices, which could potentially pressure margins, particularly in the manufacturing sector.
Indonesia Eximbank has prepared various mitigation scenarios and is being more selective in determining financing sectors deemed relatively safe amidst the current conditions, he added.
On the same occasion, Richard Cahadi, President Director of PT Mega Global Food Industry (Kokola Group), stated that financing support from the Indonesian Eximbank played a crucial role in maintaining production continuity amidst global supply chain disruptions.
He explained that the conflict in the Middle East had triggered an increase in the price of plastic raw materials due to disruptions in naphtha supplies, requiring the company to ensure the availability of packaging materials to avoid production disruptions.
In this case, the PKE financing scheme helps maintain the company's liquidity, especially when suppliers implement an upfront payment system.
"If we did not have their support, we would definitely have cash flow difficulties to purchase raw materials. The raw material for plastic is petroleum, whose supply chain has been disrupted. Our primary task as suppliers is to secure that first,” Richard said. Antara News
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Transitioning To Biodiesel An Obvious Option, Says DPM Dr Ahmad Zahid Hamidi
The government is pushing ahead with biodiesel as a key solution to cushion rising diesel costs, with Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi describing the transition as an “obvious option” amid volatile global oil prices.
He said the proposal has been tabled to the National Economic Action Council (MTEN), with a focus on scaling up biodiesel production through collaboration between agencies such as the Federal Land Development Authority, Federal Land Consolidation and Rehabilitation Authority and plantation industry players.
Zahid said Malaysia currently has 19 biofuel plants producing blends ranging from B15 to B50, adding that efforts will tap into sludge and by-products from crude palm oil (CPO) processing, which can contribute up to 35% of production input.
He noted that the initiative, which also includes the production of Jet A1 fuel, has already begun and received in-principle approval from MTEN.
“We will coordinate with all relevant parties to create synergies across these plants so production costs can be lowered,” he told reporters after officiating the opening of RissMart Grocer at Urban Eats@Kwasa Damansara today.
Beyond cost savings, the move is also aimed at reducing waste and easing raw material pressures within the industry.
Initial output is estimated at over 1.5 million litres per month and is expected to rise significantly once large-scale production kicks in.
Zahid said pilot tests have already been carried out, with Petronas also conducting trials, reinforcing confidence in the fuel’s usability.
“In the long run, biodiesel will help stabilise and bring down diesel prices in the country,”he said. Business Today
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SD Guthrie Bhd stock (MYL5285OO001): Why does its palm oil focus matter more now for global investors?
As palm oil demand surges amid supply constraints, SD Guthrie Bhd's plantation assets position it at the center of a key agribusiness play. For investors in the United States and English-speaking markets worldwide, this offers exposure to essential commodities with steady global relevance. ISIN: MYL5285OO001
SD Guthrie Bhd stock (MYL5285OO001) gives you targeted exposure to the palm oil sector, where rising global demand for this versatile commodity creates opportunities amid fluctuating supply dynamics. The company's focus on plantations and related operations in Southeast Asia aligns with enduring needs in food, cosmetics, and biofuels. You should evaluate if this setup delivers reliable returns as sustainability pressures reshape the industry.
By Elena Harper, Senior Commodities Editor – Exploring how agribusiness stocks like SD Guthrie Bhd fit into diversified portfolios for U.S. and global investors.
SD Guthrie Bhd's Core Business Model
SD Guthrie Bhd operates primarily as a plantation company centered on oil palm cultivation, processing crude palm oil and palm kernel oil. This model relies on vast land holdings in Malaysia, where favorable tropical climates support high yields per hectare compared to other oilseeds. You benefit from this efficiency because it underpins cost advantages in production, essential for competing in a price-sensitive global market.
The company integrates upstream activities from planting to milling, ensuring control over quality and output volumes. Downstream, it sells to refiners and exporters serving food manufacturers, oleochemical producers, and biofuel makers worldwide. This vertical integration minimizes intermediary risks, stabilizing revenue streams even as raw material prices swing.
For investors, the recurring nature of harvests—typically every 10-25 days—provides quarterly cash flow visibility, contrasting with more seasonal crops. Management emphasizes replanting programs to sustain long-term productivity, a critical lever for maintaining output as trees age. This disciplined approach supports steady dividends, appealing if you seek income alongside commodity upside.
The business model also incorporates rubber plantations as a smaller diversifier, though palm oil dominates revenue. Sustainability certifications like RSPO membership signal compliance with growing ESG standards, potentially unlocking premium markets. Overall, this structure positions SD Guthrie Bhd as a pure-play on palm oil fundamentals. Adhoc News
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IMF outlook for Africa: ‘War in the Middle East threatens hard-gained reforms’
The IMF’s Montie Mlachila warns that a ‘shock after shock’ cycle and unprecedented aid cuts are threatening Africa’s hard-won economic reforms, leaving oil importers and fragile states with dwindling buffers to navigate a volatile global market.
Africa's Biggest Economic Risk Is Not Debt. It Is Structural Exposure to Shocks It Does Not Control.
In 2025, Sub-Saharan Africa posted its strongest growth in over a decade. By early 2026, that momentum was already slowing, not because of domestic policy failure, but because conflict in the Middle East raised oil prices, disrupted shipping lanes, and pushed fertilizer costs higher. Africa did not cause any of that. It absorbed all of it. That asymmetry is the region's defining economic risk, and it is more consequential than the debt conversation that dominates most analysis.
Sub-Saharan Africa entered 2026 carrying the momentum of a strong 2025. GDP growth reached approximately 4.5 percent across the region, the fastest pace in over a decade. Inflation had moderated. Several large economies had stabilised after years of pressure. The IMF's October 2025 projections reflected cautious confidence. By the time the April 2026 Regional Economic Outlook was finalised, the picture had already shifted. Growth is now projected at 4.3 percent for 2026, 0.3 percentage points below the pre-war forecast. The source of the revision is not an internal policy failure. It is a war in the Middle East that Sub-Saharan Africa had no part in starting and no mechanism to stop.
That fact is more consequential than any individual growth figure. It reveals the structural condition that makes every African growth story contingent: the region's economic outcomes are determined, to a degree that most analysis understates, by variables that African governments, central banks, and private sectors cannot influence.
How the Transmission Chain Works
The IMF traces a clear sequence from external event to domestic outcome. Conflict in the Middle East pushed global oil and gas prices sharply higher. Higher energy prices raised transport and production costs across the region. Shipping disruptions added logistics expenses on top of already elevated input costs. Fertilizer prices, which are closely linked to energy costs, increased and introduced new risks to agricultural output. Food prices followed, feeding directly into household inflation. Tourist arrivals weakened in some markets. Remittance flows came under pressure in others. Risk appetite among global investors declined, tightening financing conditions and raising sovereign spreads particularly for fuel-importing economies.
Each link in this chain originated outside Africa. Each link produced consequences inside it. The IMF projects regional median inflation to rise to approximately 5.0 percent by end 2026, up from 3.4 percent at end 2025. That reversal is not primarily a story about monetary policy failure or excess domestic demand. It is the arithmetic of imported cost pressures moving through economies that depend heavily on external sources for energy, fertilizers, and a significant share of food inputs.
Why the Impact Is Amplified Here
External shocks do not hit all regions with equal force. Sub-Saharan Africa experiences amplified effects because of structural conditions that make the transmission faster and the adjustment harder. Import dependency in fuel, fertilizers, and food inputs means that global price increases pass through to domestic costs with minimal delay. Fiscal space is constrained across most of the region, with more than one-third of countries already at high risk of debt distress before the current shock arrived. Foreign exchange reserves are limited in many economies, reducing the capacity to absorb balance of payments pressure through intervention. The productive structure of most economies concentrates activity in agriculture, transport, and basic consumption, precisely the sectors most sensitive to energy and food cost fluctuations.
The combination produces a system in which external shocks become domestic instability faster than policy can respond. The IMF models a severe downside scenario in which regional output contracts by 0.6 percent relative to the pre-war baseline, with oil-importing economies seeing real output fall by as much as 1.5 percentage points in 2026 alone. These are not abstract projections. They are the upper bound of a range that policymakers are currently navigating in real time.
The Divide the Shock Exposes
One of the more analytically significant findings in the IMF's April 2026 outlook is the degree to which the same global shock produces structurally opposite outcomes within the region. Oil-exporting economies, including Nigeria and Angola, benefit from rising prices through higher export revenues and improved fiscal positions. Oil-importing economies, which represent the majority of Sub-Saharan African countries, experience deteriorating trade balances, higher domestic costs, and compressed household purchasing power simultaneously.
This asymmetry matters because it means Africa is not a single economic system reacting uniformly to global events. It is a collection of economies with structurally different exposures to the same shocks, and the policy requirements differ accordingly. An oil exporter navigating a windfall faces the challenge of avoiding procyclical spending and rebuilding buffers. An oil importer navigating an energy price spike faces the challenge of protecting social spending while managing fiscal deterioration and currency pressure. The IMF addresses both cases, but the underlying point is the same: exposure profile determines outcome more than domestic policy quality in the short run.
Where Tanzania Sits in This Picture
Tanzania is not an oil exporter. The economy is more diversified than many of its regional peers, with tourism, agriculture, infrastructure investment, and a growing services sector contributing to growth. But diversification does not eliminate exposure. Rising fuel prices increase transport costs across the entire supply chain, from farm inputs to port logistics. Higher fertilizer prices reduce agricultural productivity margins at a time when food security is already under pressure. Shipping disruptions raise import costs and extend delivery timelines. These pressures filter through the economy quickly and affect household consumption, business operating costs, and inflation expectations in ways that tighten economic conditions without any corresponding domestic trigger.
The IMF projects Tanzania's growth at 5.9 percent for both 2025 and 2026, which reflects genuine structural momentum. But the trajectory is tested precisely because the global environment has become significantly more adverse. Sustaining those numbers requires absorbing external cost pressures that were not present when the growth projections were made.
The Risk That Debt Framing Obscures
The dominant lens through which African economic risk is analysed is debt. Debt-to-GDP ratios, fiscal deficits, and sovereign financing conditions receive the majority of analytical attention from international institutions, ratings agencies, and investor commentary. These concerns are real and in many cases urgent. But the IMF's April 2026 data suggests that debt is a secondary risk that amplifies a primary one.
The primary risk is structural external exposure. An economy with manageable debt levels but high import dependency and limited fiscal buffers is vulnerable to every global commodity cycle. An economy with elevated debt and the same structural profile is doubly so. Debt does not create the vulnerability. It amplifies it. The underlying issue is an economic structure that transmits global price movements into domestic outcomes at speed, and that has limited capacity to resist or absorb those movements.
The IMF's own language is instructive. It identifies limited buffers, constrained fiscal space, and shallow foreign exchange markets as the mechanisms through which external shocks become crises. These are structural conditions, not financing problems that can be resolved by lowering debt ratios. Countries can reduce debt and remain just as exposed if the production and trade structure remains unchanged.
What Resilience Actually Requires
The IMF's policy recommendations address the immediate shock with appropriate precision: monetary discipline to anchor inflation expectations, targeted fiscal support for the most vulnerable, avoidance of generalised price subsidies that create fiscal risk without structural benefit. These are the right responses to a shock that is already in the system.
The harder recommendation, and the one that addresses the underlying condition rather than the current episode, is structural transformation. Lower dependence on imported energy through domestic generation capacity. Increased local production of agricultural inputs. More diversified export bases that stabilise foreign exchange earnings across commodity cycles. Deeper domestic financial markets that reduce reliance on external financing. Regional integration that builds supply chain resilience across borders. Each of these changes reduces the intensity with which global shocks transmit into domestic outcomes. None of them can be achieved through monetary policy or short-term fiscal adjustments. They require a different economic structure, built over years, and sustained through political cycles.
The tools available to policymakers operate slower than the shocks they are responding to. That gap between shock speed and reform speed is where Africa's economic volatility lives. Fiscal discipline cannot offset imported inflation. Monetary policy cannot lower global oil prices. Reforms that are necessary in 2026 will not alter the production structure before the current shock has already done its damage.
Africa's economic volatility is not random. It is the predictable, recurring outcome of an economic model that imports critical inputs, exports relatively concentrated commodity streams, and holds limited buffers against the price movements that govern both. When global conditions are favourable, growth accelerates. When they deteriorate, growth slows. The cycle repeats because the structure that drives it remains largely unchanged.
Every external shock will continue to feel internal until the structure that transmits it is transformed. Uchumi 360
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From aid to investment: Africa redraws the terms of partnership with Europe
At the World Bank Spring Meetings, AUDA-NEPAD CEO Nardos Bekele-Thomas set out a clear proposition: Africa is no longer seeking aid, but equitable investment, structural reform and a rebalanced global financial system.
This article was produced with the support of AUDA NEPAD
When Nardos Bekele-Thomas, CEO of AUDA-NEPAD, addressed the Africa–Europe Finance Ministers’ Platform during the World Bank Spring Meetings, she did not present a familiar narrative about Africa’s financing gap or make an appeal for aid. Instead, she articulated a principle.
Speaking to finance ministers, central bank governors, multilateral development bank leaders and senior European Union officials, Bekele-Thomas drew a firm conclusion. The era of Africa as a passive aid recipient has ended. What must follow is a new phase defined by strategic co-investment, mutual benefit and meaningful structural reform.
Her intervention focused on three urgent and interconnected challenges shaping Africa’s economic future and its relationship with Europe.
The first concerned the European Union’s next long-term budget. The proposed 2028 to 2034 Multiannual Financial Framework allocates €60.5bn to Sub-Saharan Africa within a wider €215bn Global Europe envelope. For African governments, this is more than a financial commitment. It is a test of whether the rhetoric of mutually beneficial partnerships will translate into genuinely transformed relationships or simply repackage old forms of conditionality.
Bekele-Thomas emphasised that Africa is ready to engage on different terms. The continent is aligning its Agenda 2063 with the EU’s Global Gateway initiative, offering bankable projects in sectors such as critical minerals, green hydrogen and digital infrastructure. However, she stressed that a true partnership requires reciprocity.
This includes European support for local value addition rather than continued reliance on raw material exports, policy space for industrialisation and safeguards to ensure that climate measures do not become disguised trade barriers. She pointed in particular to the Carbon Border Adjustment Mechanism, warning that while designed as a climate tool, it risks penalising the very manufacturing growth Africa needs to climb the global value chain.
The second issue addressed the persistent drain of resources from the continent. Bekele-Thomas reframed the widely cited figure of $88bn lost annually to illicit financial flows not as a failure of African governance, but as a systemic flaw in the global financial architecture.
She proposed practical solutions. One was to open the Global Emerging Markets Risk Database, currently restricted to multilateral development banks, to private investors. This database contains three decades of credit performance data across numerous institutions. Making it accessible could reduce information asymmetry and significantly lower borrowing costs, which currently impose an estimated $15.6bn annual burden on African economies.
She also called for more inclusive global tax reform, with African countries participating as equal partners rather than rule-takers in processes dominated by the OECD. In addition, she highlighted the importance of establishing the Africa Credit Risk Agency, a continental body designed to provide more accurate and context-sensitive credit assessments, challenging external ratings that often misprice African risk.
The third pillar of her message was opportunity. Bekele-Thomas pointed to GreenAlpha, an initiative positioning Africa’s green industrial infrastructure as an institutional-grade asset class. With more than €30 trillion held in European pension funds seeking long-term, climate-aligned investments, the potential alignment is clear. Unlocking this capital, however, depends on reducing Africa’s cost of capital, a goal directly linked to reforms such as improved risk data transparency and credible continental credit institutions.
Beyond these proposals, Bekele-Thomas argued for broader reforms to global financial governance. At the United Nations level, she called for full implementation of the Sevilla Platform for Action, support for a UN Tax Convention and the creation of a permanent Borrowers’ Forum to give debtor nations a collective voice. At the G20 level, she urged the adoption of multi-year roadmaps for multilateral development bank reform, backed by accountability mechanisms. Within the banks themselves, she stressed that initiatives such as the World Bank’s Evolution Roadmap must move from ambition to delivery, with counter-cyclical lending at their core.
Her closing message was direct. Africa is ready with investable projects, a unified continental voice through the African Union and scalable platforms such as GreenAlpha. What it seeks from Europe is not assistance, but equivalent ambition. This includes democratising access to risk data, supporting global tax reform, advancing African-led financial institutions and ensuring that development banks respond more effectively to economic shocks.
The timing is critical. With the next EU budget cycle beginning in 2028, Bekele-Thomas argued that the framework should be co-designed now, not as a traditional donor-recipient arrangement, but as a partnership between co-investors in a shared and sustainable future. African Business
Indonesia's exports remain strong amidst global turmoil
Nganjuk, E. Java (ANTARA) - Indonesia Eximbank stated that national export activities remain strong amidst the ongoing geopolitical turmoil triggered by the Middle East conflict.
"Right now, up to the latest stage, all of our pipelines are still ongoing, still running well,” Indonesia Eximbank managing director of business II, Sulaeman, said during a media visit in Gresik, East Java, on Friday.
To maintain export performance, the government relies on the Special Export Assignment (PKE) program, which provides comprehensive financing support, from pre-export to post-export stages, as well as guarantee facilities for businesses.
In addition, Indonesia Eximbank is taking anticipatory measures through stress testing of its export financing portfolio to identify the most impacted sectors and borrowers, particularly those with exposure to the Middle East.
Amidst current geopolitical uncertainty, the institution is closely monitoring the impact of global supply chain disruptions and the weakening rupiah, which could potentially impact borrower performance.
Various mitigation measures have been prepared, including ensuring the selection of financing products with clear underlying transactions, for both pre-shipment and post-shipment financing.
Sulaeman further detailed that Indonesia Eximbank’s current primary mandate is to encourage increased national exports through two financing schemes, including PKE for economic financing and commercial financing.
Each financing under the PKE scheme has a significant multiplier effect, where every rupiah disbursed can create up to a threefold development impact.
Overall, the value of PKE financing currently reaches Rp13.7 trillion (US$801.06 million), spread across six programs and seven projects.
By 2025, the PKE Trade Finance facility has a total limit of Rp3.35 trillion (US$195.82 million), with disbursements reaching Rp7.68 trillion (US$448.88 million) throughout the year.
The processed food sector was the largest contributor to the portfolio, accounting for 39 percent, encompassing 31 borrowers.
Overall, the program has reached 18 industrial sectors, including rubber, coffee, furniture, footwear, textiles, jewelry, tea and spices, and electronics.
"In addition to providing financial support to businesses, PKE Trade Finance also plays a role in encouraging development impact,” Sulaeman noted.
Throughout 2025, PKE Trade Finance disbursements contributed to the creation and/or savings of Rp21.12 trillion (US$1.23 billion) in foreign exchange.
However, Sulaeman reminded businesses to remain vigilant about the continued impact of global turmoil, particularly rising raw material prices, which could potentially pressure margins, particularly in the manufacturing sector.
Indonesia Eximbank has prepared various mitigation scenarios and is being more selective in determining financing sectors deemed relatively safe amidst the current conditions, he added.
On the same occasion, Richard Cahadi, President Director of PT Mega Global Food Industry (Kokola Group), stated that financing support from the Indonesian Eximbank played a crucial role in maintaining production continuity amidst global supply chain disruptions.
He explained that the conflict in the Middle East had triggered an increase in the price of plastic raw materials due to disruptions in naphtha supplies, requiring the company to ensure the availability of packaging materials to avoid production disruptions.
In this case, the PKE financing scheme helps maintain the company's liquidity, especially when suppliers implement an upfront payment system.
"If we did not have their support, we would definitely have cash flow difficulties to purchase raw materials. The raw material for plastic is petroleum, whose supply chain has been disrupted. Our primary task as suppliers is to secure that first,” Richard said. Antara News
--------
Transitioning To Biodiesel An Obvious Option, Says DPM Dr Ahmad Zahid Hamidi
The government is pushing ahead with biodiesel as a key solution to cushion rising diesel costs, with Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi describing the transition as an “obvious option” amid volatile global oil prices.
He said the proposal has been tabled to the National Economic Action Council (MTEN), with a focus on scaling up biodiesel production through collaboration between agencies such as the Federal Land Development Authority, Federal Land Consolidation and Rehabilitation Authority and plantation industry players.
Zahid said Malaysia currently has 19 biofuel plants producing blends ranging from B15 to B50, adding that efforts will tap into sludge and by-products from crude palm oil (CPO) processing, which can contribute up to 35% of production input.
He noted that the initiative, which also includes the production of Jet A1 fuel, has already begun and received in-principle approval from MTEN.
“We will coordinate with all relevant parties to create synergies across these plants so production costs can be lowered,” he told reporters after officiating the opening of RissMart Grocer at Urban Eats@Kwasa Damansara today.
Beyond cost savings, the move is also aimed at reducing waste and easing raw material pressures within the industry.
Initial output is estimated at over 1.5 million litres per month and is expected to rise significantly once large-scale production kicks in.
Zahid said pilot tests have already been carried out, with Petronas also conducting trials, reinforcing confidence in the fuel’s usability.
“In the long run, biodiesel will help stabilise and bring down diesel prices in the country,”he said. Business Today
--------
SD Guthrie Bhd stock (MYL5285OO001): Why does its palm oil focus matter more now for global investors?
As palm oil demand surges amid supply constraints, SD Guthrie Bhd's plantation assets position it at the center of a key agribusiness play. For investors in the United States and English-speaking markets worldwide, this offers exposure to essential commodities with steady global relevance. ISIN: MYL5285OO001
SD Guthrie Bhd stock (MYL5285OO001) gives you targeted exposure to the palm oil sector, where rising global demand for this versatile commodity creates opportunities amid fluctuating supply dynamics. The company's focus on plantations and related operations in Southeast Asia aligns with enduring needs in food, cosmetics, and biofuels. You should evaluate if this setup delivers reliable returns as sustainability pressures reshape the industry.
By Elena Harper, Senior Commodities Editor – Exploring how agribusiness stocks like SD Guthrie Bhd fit into diversified portfolios for U.S. and global investors.
SD Guthrie Bhd's Core Business Model
SD Guthrie Bhd operates primarily as a plantation company centered on oil palm cultivation, processing crude palm oil and palm kernel oil. This model relies on vast land holdings in Malaysia, where favorable tropical climates support high yields per hectare compared to other oilseeds. You benefit from this efficiency because it underpins cost advantages in production, essential for competing in a price-sensitive global market.
The company integrates upstream activities from planting to milling, ensuring control over quality and output volumes. Downstream, it sells to refiners and exporters serving food manufacturers, oleochemical producers, and biofuel makers worldwide. This vertical integration minimizes intermediary risks, stabilizing revenue streams even as raw material prices swing.
For investors, the recurring nature of harvests—typically every 10-25 days—provides quarterly cash flow visibility, contrasting with more seasonal crops. Management emphasizes replanting programs to sustain long-term productivity, a critical lever for maintaining output as trees age. This disciplined approach supports steady dividends, appealing if you seek income alongside commodity upside.
The business model also incorporates rubber plantations as a smaller diversifier, though palm oil dominates revenue. Sustainability certifications like RSPO membership signal compliance with growing ESG standards, potentially unlocking premium markets. Overall, this structure positions SD Guthrie Bhd as a pure-play on palm oil fundamentals. Adhoc News
--------
IMF outlook for Africa: ‘War in the Middle East threatens hard-gained reforms’
The IMF’s Montie Mlachila warns that a ‘shock after shock’ cycle and unprecedented aid cuts are threatening Africa’s hard-won economic reforms, leaving oil importers and fragile states with dwindling buffers to navigate a volatile global market.
Africa's Biggest Economic Risk Is Not Debt. It Is Structural Exposure to Shocks It Does Not Control.
In 2025, Sub-Saharan Africa posted its strongest growth in over a decade. By early 2026, that momentum was already slowing, not because of domestic policy failure, but because conflict in the Middle East raised oil prices, disrupted shipping lanes, and pushed fertilizer costs higher. Africa did not cause any of that. It absorbed all of it. That asymmetry is the region's defining economic risk, and it is more consequential than the debt conversation that dominates most analysis.
Sub-Saharan Africa entered 2026 carrying the momentum of a strong 2025. GDP growth reached approximately 4.5 percent across the region, the fastest pace in over a decade. Inflation had moderated. Several large economies had stabilised after years of pressure. The IMF's October 2025 projections reflected cautious confidence. By the time the April 2026 Regional Economic Outlook was finalised, the picture had already shifted. Growth is now projected at 4.3 percent for 2026, 0.3 percentage points below the pre-war forecast. The source of the revision is not an internal policy failure. It is a war in the Middle East that Sub-Saharan Africa had no part in starting and no mechanism to stop.
That fact is more consequential than any individual growth figure. It reveals the structural condition that makes every African growth story contingent: the region's economic outcomes are determined, to a degree that most analysis understates, by variables that African governments, central banks, and private sectors cannot influence.
How the Transmission Chain Works
The IMF traces a clear sequence from external event to domestic outcome. Conflict in the Middle East pushed global oil and gas prices sharply higher. Higher energy prices raised transport and production costs across the region. Shipping disruptions added logistics expenses on top of already elevated input costs. Fertilizer prices, which are closely linked to energy costs, increased and introduced new risks to agricultural output. Food prices followed, feeding directly into household inflation. Tourist arrivals weakened in some markets. Remittance flows came under pressure in others. Risk appetite among global investors declined, tightening financing conditions and raising sovereign spreads particularly for fuel-importing economies.
Each link in this chain originated outside Africa. Each link produced consequences inside it. The IMF projects regional median inflation to rise to approximately 5.0 percent by end 2026, up from 3.4 percent at end 2025. That reversal is not primarily a story about monetary policy failure or excess domestic demand. It is the arithmetic of imported cost pressures moving through economies that depend heavily on external sources for energy, fertilizers, and a significant share of food inputs.
Why the Impact Is Amplified Here
External shocks do not hit all regions with equal force. Sub-Saharan Africa experiences amplified effects because of structural conditions that make the transmission faster and the adjustment harder. Import dependency in fuel, fertilizers, and food inputs means that global price increases pass through to domestic costs with minimal delay. Fiscal space is constrained across most of the region, with more than one-third of countries already at high risk of debt distress before the current shock arrived. Foreign exchange reserves are limited in many economies, reducing the capacity to absorb balance of payments pressure through intervention. The productive structure of most economies concentrates activity in agriculture, transport, and basic consumption, precisely the sectors most sensitive to energy and food cost fluctuations.
The combination produces a system in which external shocks become domestic instability faster than policy can respond. The IMF models a severe downside scenario in which regional output contracts by 0.6 percent relative to the pre-war baseline, with oil-importing economies seeing real output fall by as much as 1.5 percentage points in 2026 alone. These are not abstract projections. They are the upper bound of a range that policymakers are currently navigating in real time.
The Divide the Shock Exposes
One of the more analytically significant findings in the IMF's April 2026 outlook is the degree to which the same global shock produces structurally opposite outcomes within the region. Oil-exporting economies, including Nigeria and Angola, benefit from rising prices through higher export revenues and improved fiscal positions. Oil-importing economies, which represent the majority of Sub-Saharan African countries, experience deteriorating trade balances, higher domestic costs, and compressed household purchasing power simultaneously.
This asymmetry matters because it means Africa is not a single economic system reacting uniformly to global events. It is a collection of economies with structurally different exposures to the same shocks, and the policy requirements differ accordingly. An oil exporter navigating a windfall faces the challenge of avoiding procyclical spending and rebuilding buffers. An oil importer navigating an energy price spike faces the challenge of protecting social spending while managing fiscal deterioration and currency pressure. The IMF addresses both cases, but the underlying point is the same: exposure profile determines outcome more than domestic policy quality in the short run.
Where Tanzania Sits in This Picture
Tanzania is not an oil exporter. The economy is more diversified than many of its regional peers, with tourism, agriculture, infrastructure investment, and a growing services sector contributing to growth. But diversification does not eliminate exposure. Rising fuel prices increase transport costs across the entire supply chain, from farm inputs to port logistics. Higher fertilizer prices reduce agricultural productivity margins at a time when food security is already under pressure. Shipping disruptions raise import costs and extend delivery timelines. These pressures filter through the economy quickly and affect household consumption, business operating costs, and inflation expectations in ways that tighten economic conditions without any corresponding domestic trigger.
The IMF projects Tanzania's growth at 5.9 percent for both 2025 and 2026, which reflects genuine structural momentum. But the trajectory is tested precisely because the global environment has become significantly more adverse. Sustaining those numbers requires absorbing external cost pressures that were not present when the growth projections were made.
The Risk That Debt Framing Obscures
The dominant lens through which African economic risk is analysed is debt. Debt-to-GDP ratios, fiscal deficits, and sovereign financing conditions receive the majority of analytical attention from international institutions, ratings agencies, and investor commentary. These concerns are real and in many cases urgent. But the IMF's April 2026 data suggests that debt is a secondary risk that amplifies a primary one.
The primary risk is structural external exposure. An economy with manageable debt levels but high import dependency and limited fiscal buffers is vulnerable to every global commodity cycle. An economy with elevated debt and the same structural profile is doubly so. Debt does not create the vulnerability. It amplifies it. The underlying issue is an economic structure that transmits global price movements into domestic outcomes at speed, and that has limited capacity to resist or absorb those movements.
The IMF's own language is instructive. It identifies limited buffers, constrained fiscal space, and shallow foreign exchange markets as the mechanisms through which external shocks become crises. These are structural conditions, not financing problems that can be resolved by lowering debt ratios. Countries can reduce debt and remain just as exposed if the production and trade structure remains unchanged.
What Resilience Actually Requires
The IMF's policy recommendations address the immediate shock with appropriate precision: monetary discipline to anchor inflation expectations, targeted fiscal support for the most vulnerable, avoidance of generalised price subsidies that create fiscal risk without structural benefit. These are the right responses to a shock that is already in the system.
The harder recommendation, and the one that addresses the underlying condition rather than the current episode, is structural transformation. Lower dependence on imported energy through domestic generation capacity. Increased local production of agricultural inputs. More diversified export bases that stabilise foreign exchange earnings across commodity cycles. Deeper domestic financial markets that reduce reliance on external financing. Regional integration that builds supply chain resilience across borders. Each of these changes reduces the intensity with which global shocks transmit into domestic outcomes. None of them can be achieved through monetary policy or short-term fiscal adjustments. They require a different economic structure, built over years, and sustained through political cycles.
The tools available to policymakers operate slower than the shocks they are responding to. That gap between shock speed and reform speed is where Africa's economic volatility lives. Fiscal discipline cannot offset imported inflation. Monetary policy cannot lower global oil prices. Reforms that are necessary in 2026 will not alter the production structure before the current shock has already done its damage.
Africa's economic volatility is not random. It is the predictable, recurring outcome of an economic model that imports critical inputs, exports relatively concentrated commodity streams, and holds limited buffers against the price movements that govern both. When global conditions are favourable, growth accelerates. When they deteriorate, growth slows. The cycle repeats because the structure that drives it remains largely unchanged.
Every external shock will continue to feel internal until the structure that transmits it is transformed. Uchumi 360
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From aid to investment: Africa redraws the terms of partnership with Europe
At the World Bank Spring Meetings, AUDA-NEPAD CEO Nardos Bekele-Thomas set out a clear proposition: Africa is no longer seeking aid, but equitable investment, structural reform and a rebalanced global financial system.
This article was produced with the support of AUDA NEPAD
When Nardos Bekele-Thomas, CEO of AUDA-NEPAD, addressed the Africa–Europe Finance Ministers’ Platform during the World Bank Spring Meetings, she did not present a familiar narrative about Africa’s financing gap or make an appeal for aid. Instead, she articulated a principle.
Speaking to finance ministers, central bank governors, multilateral development bank leaders and senior European Union officials, Bekele-Thomas drew a firm conclusion. The era of Africa as a passive aid recipient has ended. What must follow is a new phase defined by strategic co-investment, mutual benefit and meaningful structural reform.
Her intervention focused on three urgent and interconnected challenges shaping Africa’s economic future and its relationship with Europe.
The first concerned the European Union’s next long-term budget. The proposed 2028 to 2034 Multiannual Financial Framework allocates €60.5bn to Sub-Saharan Africa within a wider €215bn Global Europe envelope. For African governments, this is more than a financial commitment. It is a test of whether the rhetoric of mutually beneficial partnerships will translate into genuinely transformed relationships or simply repackage old forms of conditionality.
Bekele-Thomas emphasised that Africa is ready to engage on different terms. The continent is aligning its Agenda 2063 with the EU’s Global Gateway initiative, offering bankable projects in sectors such as critical minerals, green hydrogen and digital infrastructure. However, she stressed that a true partnership requires reciprocity.
This includes European support for local value addition rather than continued reliance on raw material exports, policy space for industrialisation and safeguards to ensure that climate measures do not become disguised trade barriers. She pointed in particular to the Carbon Border Adjustment Mechanism, warning that while designed as a climate tool, it risks penalising the very manufacturing growth Africa needs to climb the global value chain.
The second issue addressed the persistent drain of resources from the continent. Bekele-Thomas reframed the widely cited figure of $88bn lost annually to illicit financial flows not as a failure of African governance, but as a systemic flaw in the global financial architecture.
She proposed practical solutions. One was to open the Global Emerging Markets Risk Database, currently restricted to multilateral development banks, to private investors. This database contains three decades of credit performance data across numerous institutions. Making it accessible could reduce information asymmetry and significantly lower borrowing costs, which currently impose an estimated $15.6bn annual burden on African economies.
She also called for more inclusive global tax reform, with African countries participating as equal partners rather than rule-takers in processes dominated by the OECD. In addition, she highlighted the importance of establishing the Africa Credit Risk Agency, a continental body designed to provide more accurate and context-sensitive credit assessments, challenging external ratings that often misprice African risk.
The third pillar of her message was opportunity. Bekele-Thomas pointed to GreenAlpha, an initiative positioning Africa’s green industrial infrastructure as an institutional-grade asset class. With more than €30 trillion held in European pension funds seeking long-term, climate-aligned investments, the potential alignment is clear. Unlocking this capital, however, depends on reducing Africa’s cost of capital, a goal directly linked to reforms such as improved risk data transparency and credible continental credit institutions.
Beyond these proposals, Bekele-Thomas argued for broader reforms to global financial governance. At the United Nations level, she called for full implementation of the Sevilla Platform for Action, support for a UN Tax Convention and the creation of a permanent Borrowers’ Forum to give debtor nations a collective voice. At the G20 level, she urged the adoption of multi-year roadmaps for multilateral development bank reform, backed by accountability mechanisms. Within the banks themselves, she stressed that initiatives such as the World Bank’s Evolution Roadmap must move from ambition to delivery, with counter-cyclical lending at their core.
Her closing message was direct. Africa is ready with investable projects, a unified continental voice through the African Union and scalable platforms such as GreenAlpha. What it seeks from Europe is not assistance, but equivalent ambition. This includes democratising access to risk data, supporting global tax reform, advancing African-led financial institutions and ensuring that development banks respond more effectively to economic shocks.
The timing is critical. With the next EU budget cycle beginning in 2028, Bekele-Thomas argued that the framework should be co-designed now, not as a traditional donor-recipient arrangement, but as a partnership between co-investors in a shared and sustainable future. African Business
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April 18, 2026
Biofuel becomes strategic protection amid oil price fluctuations
Jakarta (ANTARA) - When global energy prices have recently fluctuated, Indonesia faces the classic challenge of dependence on energy imports amid continuously rising domestic demand.
Global oil prices have moved in the range of around 100 US dollars per barrel during the latest period of fluctuation, driven by supply disruptions and rising geopolitical tensions in several regions.
Disruptions to global energy distribution routes, including in strategic areas such as the Strait of Hormuz, which channels around one-fifth of the world’s oil supply, once again underscore the sensitivity of energy markets to geopolitical risks amid the dynamics of the Iran-United States conflict.
These fluctuations have a direct impact on importing countries such as Indonesia through higher energy import costs, pressure on subsidies, and potential increases in domestic inflation.
The gap between national energy demand and production remains a challenge, with domestic oil production at a limited level compared to continuously rising consumption.
This condition leaves Indonesia still vulnerable to changes in global energy prices driven by external factors.
Biofuel buffer
In this situation, palm oil-based biofuel has become one of the buffering alternatives that can be utilized to mitigate the impact of global energy volatility without waiting for a long-term energy transformation.
President Prabowo Subianto has emphasized the importance of strengthening energy sovereignty through accelerating biodiesel implementation as part of the national energy resilience strategy.
The policy direction of increasing the biodiesel blend to B50, namely a mixture of 50 percent biodiesel and 50 percent diesel fuel, is seen as a step to reduce dependence on energy imports while strengthening domestic energy resilience.
This program is a continuation of the gradual implementation of the national biodiesel policy from B20 to B35, as well as the strengthening of B40, which currently serves as the main basis of the mandatory biodiesel program.
In line with this, Minister of Energy and Mineral Resources Bahlil Lahadalia stated that strengthening biodiesel could help reduce diesel imports and support national energy stability.
The government has set a biodiesel allocation of around 15.65 million kiloliters in 2026 for the national mandatory biodiesel program.
From an implementation perspective, biodiesel is immediately usable because it utilizes existing energy infrastructure, making it one of the policy instruments that can be adopted relatively quickly compared to other energy transitions that require a long time.
From the upstream side, strengthening demand for palm oil-based biodiesel may add value to agricultural commodities while improving farmers’ welfare.
Indonesia, as one of the world’s largest palm oil producers, has a production base that supports strengthening domestic supply without fully reducing export flexibility, as stated by Minister of Agriculture Andi Amran Sulaiman.
The strengthening of demand from the energy sector is also expected to encourage closer integration between the agricultural sector and the national energy industry, especially in the palm oil supply chain.
From a fiscal perspective, increasing the energy mix is not only about import substitution but also about balancing budget burdens in the long term, according to Professor at the Bogor Agricultural University, Sudarsono Soedomo.
He emphasized that the success of this policy implementation depends on the ability to maintain a sustainable financing scheme. Antara News
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Palm Oil Industry Claims to Employ 17 Million Workers, Boosting Green Economy
JAKARTA - The palm oil industry confirms its commitment to promoting a green economy in Indonesia, in line with its contribution to economic growth, job creation, and environmental preservation.
Chairman of the Positive Campaign for the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Edi Suhardi, revealed that this sector has absorbed up to 17 million workers, both directly and indirectly.
"In addition to economic benefits, the palm oil industry also has social impacts through the creation of 17 million jobs," he said in a written statement received by VOI, Friday, April 17.
According to Edi, the palm oil industry also provides a multiplier effect for the regional economy, including improving the welfare of farmers and MSMEs in the vicinity of the plantation area.
"If we talk about oil palm plantations, usually the location of oil palm is in a very isolated area. The company must build roads and infrastructure to open access to the plantation location. In addition, the palm oil company builds supporting facilities for the community," he said.
Not only that, this sector is considered to play an important role in the development of infrastructure in remote areas. Palm oil companies often build access roads to community support facilities around the operational area.
From the environmental side, Edi emphasized that the palm oil industry has adopted the principle of sustainability.
Palm oil plantations are said to have the ability as a carbon sink and are able to process waste into value-added products.
He added that the implementation of sustainability standards such as Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO) is the key to maintaining competitiveness in the global market.
"The palm oil industry has established standards, principles, and sustainability criteria through the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO). The palm oil industry must comply and obey sustainability standards," he explained.
In the future, industry players hope that synergy with the Plantation Fund Management Agency (BPDP) can be strengthened to increase productivity and the contribution of the palm oil sector to the national green economy.
"The palm oil industry has been given a boost by the government through ISPO and from the market through RSPO. We are committed to not deforesting," he said. VOI
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Indonesian Navy to switch to B50 biodiesel from palm oil
The Indonesian Navy plans to use B50 biofuel, a blend of 50% palm oil-based biodiesel and 50% conventional diesel, for its patrol vessels. This was announced on April 16 by Admiral Muhammad Ali, Chief of Staff of the Indonesian Navy, as quoted by Antaranews.
The decision is part of a program to reduce the country’s dependence on fossil fuels. According to the admiral, the transition to the new standard will assist the navy in patrolling, providing logistics, and transporting troops. Biofuel is primarily planned for use on high-mobility vessels, which will require design modifications to the current marine engines.
Starting July 1, 2026, the use of the B50 standard will become mandatory throughout Indonesia. Indonesian authorities hope this measure will strengthen energy independence and improve the economy’s energy efficiency.
Experts estimate that raising Indonesia’s mandate to B50 will increase demand for palm oil by 1.5 million tonnes per year, reducing the volumes available for sale to foreign markets and expected to raise export prices for the product. UKR Agroconsult
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EU Sustainable Supply Chains Coalition created in run-up to EU Deforestation Regulation
European companies, certification bodies and non-profit organisations have formed a coalition to support the implementation of the EU Deforestation Regulation (EUDR), Sustainable Views reported.
Launched in the European Parliament on 14 April, the EU Sustainable Supply Chains Coalition’s aim is to call for ambitious EU legislation and policy that helps build sustainability in agricultural and timber supply chains, according to the report on the same date.
Companies involved include Swiss conglomerate Nestlé, global chocolate and cocoa manufacturer Barry Callebaut, and confectionery and snack giant Mars, alongside certification bodies and non-profit organisations such as the Rainforest Alliance and the Roundtable on Sustainable Palm Oil (RSPO).
The European Commission (EC)’s review of the law – which covers seven commodities linked to deforestation – palm oil, soyabean, timber, rubber, coffee, cocoa and cattle – was expected to be published on 30 April, the report said.
“Last November, implementation of the EUDR - which came into force in June 2023 - was delayed for the second time following a vote by the right and far-right,” French MEP Pascal Canfin told Sustainable Views, a specialist news service from the Financial Times.
“Its application has been pushed back to the end of 2026, and it is essential that no amendments are made and that it is implemented fully and rigorously.”
Bart Vandewaetere, Nestlé Europe’s vice-president of government relations and ESG engagement, told Sustainable Views the initiative could help “keep discussions on EU policies and other supporting measures constructive and focused on effective implementation” and build “more sustainable and resilient supply chains”.
The new coalition was also a way of showing the USA, which had lobbied against the EUDR, that the EU would not be dictated to, Canfin added. OFI
Biofuel becomes strategic protection amid oil price fluctuations
Jakarta (ANTARA) - When global energy prices have recently fluctuated, Indonesia faces the classic challenge of dependence on energy imports amid continuously rising domestic demand.
Global oil prices have moved in the range of around 100 US dollars per barrel during the latest period of fluctuation, driven by supply disruptions and rising geopolitical tensions in several regions.
Disruptions to global energy distribution routes, including in strategic areas such as the Strait of Hormuz, which channels around one-fifth of the world’s oil supply, once again underscore the sensitivity of energy markets to geopolitical risks amid the dynamics of the Iran-United States conflict.
These fluctuations have a direct impact on importing countries such as Indonesia through higher energy import costs, pressure on subsidies, and potential increases in domestic inflation.
The gap between national energy demand and production remains a challenge, with domestic oil production at a limited level compared to continuously rising consumption.
This condition leaves Indonesia still vulnerable to changes in global energy prices driven by external factors.
Biofuel buffer
In this situation, palm oil-based biofuel has become one of the buffering alternatives that can be utilized to mitigate the impact of global energy volatility without waiting for a long-term energy transformation.
President Prabowo Subianto has emphasized the importance of strengthening energy sovereignty through accelerating biodiesel implementation as part of the national energy resilience strategy.
The policy direction of increasing the biodiesel blend to B50, namely a mixture of 50 percent biodiesel and 50 percent diesel fuel, is seen as a step to reduce dependence on energy imports while strengthening domestic energy resilience.
This program is a continuation of the gradual implementation of the national biodiesel policy from B20 to B35, as well as the strengthening of B40, which currently serves as the main basis of the mandatory biodiesel program.
In line with this, Minister of Energy and Mineral Resources Bahlil Lahadalia stated that strengthening biodiesel could help reduce diesel imports and support national energy stability.
The government has set a biodiesel allocation of around 15.65 million kiloliters in 2026 for the national mandatory biodiesel program.
From an implementation perspective, biodiesel is immediately usable because it utilizes existing energy infrastructure, making it one of the policy instruments that can be adopted relatively quickly compared to other energy transitions that require a long time.
From the upstream side, strengthening demand for palm oil-based biodiesel may add value to agricultural commodities while improving farmers’ welfare.
Indonesia, as one of the world’s largest palm oil producers, has a production base that supports strengthening domestic supply without fully reducing export flexibility, as stated by Minister of Agriculture Andi Amran Sulaiman.
The strengthening of demand from the energy sector is also expected to encourage closer integration between the agricultural sector and the national energy industry, especially in the palm oil supply chain.
From a fiscal perspective, increasing the energy mix is not only about import substitution but also about balancing budget burdens in the long term, according to Professor at the Bogor Agricultural University, Sudarsono Soedomo.
He emphasized that the success of this policy implementation depends on the ability to maintain a sustainable financing scheme. Antara News
--------
Palm Oil Industry Claims to Employ 17 Million Workers, Boosting Green Economy
JAKARTA - The palm oil industry confirms its commitment to promoting a green economy in Indonesia, in line with its contribution to economic growth, job creation, and environmental preservation.
Chairman of the Positive Campaign for the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Edi Suhardi, revealed that this sector has absorbed up to 17 million workers, both directly and indirectly.
"In addition to economic benefits, the palm oil industry also has social impacts through the creation of 17 million jobs," he said in a written statement received by VOI, Friday, April 17.
According to Edi, the palm oil industry also provides a multiplier effect for the regional economy, including improving the welfare of farmers and MSMEs in the vicinity of the plantation area.
"If we talk about oil palm plantations, usually the location of oil palm is in a very isolated area. The company must build roads and infrastructure to open access to the plantation location. In addition, the palm oil company builds supporting facilities for the community," he said.
Not only that, this sector is considered to play an important role in the development of infrastructure in remote areas. Palm oil companies often build access roads to community support facilities around the operational area.
From the environmental side, Edi emphasized that the palm oil industry has adopted the principle of sustainability.
Palm oil plantations are said to have the ability as a carbon sink and are able to process waste into value-added products.
He added that the implementation of sustainability standards such as Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO) is the key to maintaining competitiveness in the global market.
"The palm oil industry has established standards, principles, and sustainability criteria through the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO). The palm oil industry must comply and obey sustainability standards," he explained.
In the future, industry players hope that synergy with the Plantation Fund Management Agency (BPDP) can be strengthened to increase productivity and the contribution of the palm oil sector to the national green economy.
"The palm oil industry has been given a boost by the government through ISPO and from the market through RSPO. We are committed to not deforesting," he said. VOI
--------
Indonesian Navy to switch to B50 biodiesel from palm oil
The Indonesian Navy plans to use B50 biofuel, a blend of 50% palm oil-based biodiesel and 50% conventional diesel, for its patrol vessels. This was announced on April 16 by Admiral Muhammad Ali, Chief of Staff of the Indonesian Navy, as quoted by Antaranews.
The decision is part of a program to reduce the country’s dependence on fossil fuels. According to the admiral, the transition to the new standard will assist the navy in patrolling, providing logistics, and transporting troops. Biofuel is primarily planned for use on high-mobility vessels, which will require design modifications to the current marine engines.
Starting July 1, 2026, the use of the B50 standard will become mandatory throughout Indonesia. Indonesian authorities hope this measure will strengthen energy independence and improve the economy’s energy efficiency.
Experts estimate that raising Indonesia’s mandate to B50 will increase demand for palm oil by 1.5 million tonnes per year, reducing the volumes available for sale to foreign markets and expected to raise export prices for the product. UKR Agroconsult
--------
EU Sustainable Supply Chains Coalition created in run-up to EU Deforestation Regulation
European companies, certification bodies and non-profit organisations have formed a coalition to support the implementation of the EU Deforestation Regulation (EUDR), Sustainable Views reported.
Launched in the European Parliament on 14 April, the EU Sustainable Supply Chains Coalition’s aim is to call for ambitious EU legislation and policy that helps build sustainability in agricultural and timber supply chains, according to the report on the same date.
Companies involved include Swiss conglomerate Nestlé, global chocolate and cocoa manufacturer Barry Callebaut, and confectionery and snack giant Mars, alongside certification bodies and non-profit organisations such as the Rainforest Alliance and the Roundtable on Sustainable Palm Oil (RSPO).
The European Commission (EC)’s review of the law – which covers seven commodities linked to deforestation – palm oil, soyabean, timber, rubber, coffee, cocoa and cattle – was expected to be published on 30 April, the report said.
“Last November, implementation of the EUDR - which came into force in June 2023 - was delayed for the second time following a vote by the right and far-right,” French MEP Pascal Canfin told Sustainable Views, a specialist news service from the Financial Times.
“Its application has been pushed back to the end of 2026, and it is essential that no amendments are made and that it is implemented fully and rigorously.”
Bart Vandewaetere, Nestlé Europe’s vice-president of government relations and ESG engagement, told Sustainable Views the initiative could help “keep discussions on EU policies and other supporting measures constructive and focused on effective implementation” and build “more sustainable and resilient supply chains”.
The new coalition was also a way of showing the USA, which had lobbied against the EUDR, that the EU would not be dictated to, Canfin added. OFI
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April 17, 2026
Felda, FGV seek to redefine palm oil role through waste-to-wealth shift
KUALA LUMPUR (April 16): By treating palm oil by-products as strategic resources rather than traditional waste, the Federal Land Development Authority (Felda) and FGV Holdings Bhd are seeking to redefine the role of palm oil in Malaysia’s future economy, driven by technological advancement.
FGV plantation division group director Izham Mustaffa said the company’s role extends beyond plantation operations, emphasising that its core function contributes to nation-building through the agricultural sector.
He said, firstly, the plantation and commodity company is focusing on land development to ensure that land is utilised productively, efficiently and sustainably to generate long-term socio-economic value.
He added that socio-economic advancement is also a key priority, with operations contributing to improved livelihoods, job creation and stronger communities.
“Agricultural modernisation, through the adoption of technology, innovation and best practices, is essential to future-proof and improve the sector. However, to enhance value, we must change one fundamental mindset.
“Waste is no longer a disposal issue; it is a resource and feedstock that we can harness,” he said.
Izham was speaking at the Mini Programme Advisory Committee Seminar 2026 titled Waste to Wealth: Opportunities in Green Energy and Circular Economy, held online on Thursday.
He noted the importance of converting biomass into green energy, which is increasingly critical amid global uncertainties.
“Biomass must be treated as a system, not as a by-product or waste. We can adopt a hub-and-spoke model, where estates and communities serve as supply nodes, while a central processing hub ensures quality and efficiency,” he added. The Edge
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Malaysia to need 334,000 tons of palm oil to achieve B15
April 16, 2026 | Meghan Sapp
In Malaysia, the Star newspaper reports the Malaysian Palm Oil Board estimates that an additional 334,000 metric tons of palm oil will be required for the country to move to a B15 mandate from the current B10 as it seeks to reduce fuel costs as fossil fuel prices soar. To reach the intermediate blend increase to 12% will require 130,000 tons of additional supplies while a further 204,000 tons will be need to make the next leap to 15% blending. Biofuels Digest
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Nigeria partners with investors to revive palm oil sector under Public-Private Partnership (PPP) model
The Federal Government of Nigeria (FG) has partnered with investors and other stakeholders to revive the palm oil subsector and reduce the country’s dependence on imports.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, disclosed this on Thursday at a national stakeholders’ meeting on the joint development of Nigeria’s palm oil production capacity in Abuja.
Kyari, represented by his Senior Technical Assistant, Mr Ibrahim Alkali, said the initiative, in collaboration with Mass Industrial Development and Logistics Ltd., would operate under a Public-Private Partnership (PPP) model.
He said the programme aimed to achieve up to 500 million dollars in annual import savings, while boosting local production and strengthening food sovereignty.
According to him, the success of the initiative will depend on strong collaboration among stakeholders. DMarketforces
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Cameroon Backs $30.6 Million Palm Oil Expansion to Cut Import Dependence
The construction of a new palm oil processing plant in Lengue, in the Moungo division, and the expansion of a former Socapalm facility in Eséka—recently acquired by Opalm—are expected to channel around 17 billion CFA francs (around $30.6 million) into these two production basins. According to Opalm, the investments could generate more than CFA11 billion in annual income for palm fruit producers.
Speaking on April 8, 2026, during the groundbreaking ceremony in Lengue, Patrice Yantho, coordinator of Opalm’s investment program, said the new plant will have a processing capacity of 25,000 tons per year and cost CFA9 billion. The project is expected to create more than 340 direct and indirect jobs, while guaranteeing annual purchases of palm fruit worth over CFA5 billion from local farmers.
Even before construction begins, Opalm says it has already made significant purchases in the Moungo area. Since 2024, the company has collected more than 10,000 tons of palm fruit, paying over CFA8 billion to producers.
The expected impact is even greater in Eséka. According to Yantho, Opalm has purchased more than 15,000 tons of palm fruit in less than two months, valued at over CFA1.2 billion. The company aims to reach 75,000 tons annually, representing around CFA6 billion in purchases, once a new processing unit is installed. This upgrade will raise production capacity to 25,000 tons, compared with the current 7,000 tons.
Agriculture Minister Gabriel Mbairobe said the investments will not only increase production and farmer incomes but also improve plantation productivity. This will be achieved through a partnership agreement signed in December 2025 between Opalm and the government.
Under the agreement, Opalm will support farmers with fertilizers and high-yield seeds to regenerate plantations. These measures are expected to increase yields to about two tons of palm oil per hectare, up from 500 kilograms currently—a 300% increase.
The Lengue and Eséka projects are part of a broader investment program backed by the government. Opalm plans to build five palm oil processing plants across the country over the next five years, with total investment estimated at CFA45 billion.
The goal is to increase local production by more than 100,000 tons and reduce the country’s palm oil deficit by about 50%, cutting reliance on imports.
“These investments will bring significant added value to our agriculture,” Mbairobe said, noting that the program aligns with the government’s import-substitution strategy aimed at improving the country’s trade balance.
According to the National Institute of Statistics, Cameroon’s trade deficit reached CFA2,145.2 billion in 2025, up 23% year-on-year. Ecofin Agency
Felda, FGV seek to redefine palm oil role through waste-to-wealth shift
KUALA LUMPUR (April 16): By treating palm oil by-products as strategic resources rather than traditional waste, the Federal Land Development Authority (Felda) and FGV Holdings Bhd are seeking to redefine the role of palm oil in Malaysia’s future economy, driven by technological advancement.
FGV plantation division group director Izham Mustaffa said the company’s role extends beyond plantation operations, emphasising that its core function contributes to nation-building through the agricultural sector.
He said, firstly, the plantation and commodity company is focusing on land development to ensure that land is utilised productively, efficiently and sustainably to generate long-term socio-economic value.
He added that socio-economic advancement is also a key priority, with operations contributing to improved livelihoods, job creation and stronger communities.
“Agricultural modernisation, through the adoption of technology, innovation and best practices, is essential to future-proof and improve the sector. However, to enhance value, we must change one fundamental mindset.
“Waste is no longer a disposal issue; it is a resource and feedstock that we can harness,” he said.
Izham was speaking at the Mini Programme Advisory Committee Seminar 2026 titled Waste to Wealth: Opportunities in Green Energy and Circular Economy, held online on Thursday.
He noted the importance of converting biomass into green energy, which is increasingly critical amid global uncertainties.
“Biomass must be treated as a system, not as a by-product or waste. We can adopt a hub-and-spoke model, where estates and communities serve as supply nodes, while a central processing hub ensures quality and efficiency,” he added. The Edge
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Malaysia to need 334,000 tons of palm oil to achieve B15
April 16, 2026 | Meghan Sapp
In Malaysia, the Star newspaper reports the Malaysian Palm Oil Board estimates that an additional 334,000 metric tons of palm oil will be required for the country to move to a B15 mandate from the current B10 as it seeks to reduce fuel costs as fossil fuel prices soar. To reach the intermediate blend increase to 12% will require 130,000 tons of additional supplies while a further 204,000 tons will be need to make the next leap to 15% blending. Biofuels Digest
--------
Nigeria partners with investors to revive palm oil sector under Public-Private Partnership (PPP) model
The Federal Government of Nigeria (FG) has partnered with investors and other stakeholders to revive the palm oil subsector and reduce the country’s dependence on imports.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, disclosed this on Thursday at a national stakeholders’ meeting on the joint development of Nigeria’s palm oil production capacity in Abuja.
Kyari, represented by his Senior Technical Assistant, Mr Ibrahim Alkali, said the initiative, in collaboration with Mass Industrial Development and Logistics Ltd., would operate under a Public-Private Partnership (PPP) model.
He said the programme aimed to achieve up to 500 million dollars in annual import savings, while boosting local production and strengthening food sovereignty.
According to him, the success of the initiative will depend on strong collaboration among stakeholders. DMarketforces
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Cameroon Backs $30.6 Million Palm Oil Expansion to Cut Import Dependence
- Cameroon invests CFA17 billion in palm oil production projects
- New plants, upgrades to boost output, farmer incomes, jobs
- Government-backed plan targets import cuts, higher yields, lower deficit
The construction of a new palm oil processing plant in Lengue, in the Moungo division, and the expansion of a former Socapalm facility in Eséka—recently acquired by Opalm—are expected to channel around 17 billion CFA francs (around $30.6 million) into these two production basins. According to Opalm, the investments could generate more than CFA11 billion in annual income for palm fruit producers.
Speaking on April 8, 2026, during the groundbreaking ceremony in Lengue, Patrice Yantho, coordinator of Opalm’s investment program, said the new plant will have a processing capacity of 25,000 tons per year and cost CFA9 billion. The project is expected to create more than 340 direct and indirect jobs, while guaranteeing annual purchases of palm fruit worth over CFA5 billion from local farmers.
Even before construction begins, Opalm says it has already made significant purchases in the Moungo area. Since 2024, the company has collected more than 10,000 tons of palm fruit, paying over CFA8 billion to producers.
The expected impact is even greater in Eséka. According to Yantho, Opalm has purchased more than 15,000 tons of palm fruit in less than two months, valued at over CFA1.2 billion. The company aims to reach 75,000 tons annually, representing around CFA6 billion in purchases, once a new processing unit is installed. This upgrade will raise production capacity to 25,000 tons, compared with the current 7,000 tons.
Agriculture Minister Gabriel Mbairobe said the investments will not only increase production and farmer incomes but also improve plantation productivity. This will be achieved through a partnership agreement signed in December 2025 between Opalm and the government.
Under the agreement, Opalm will support farmers with fertilizers and high-yield seeds to regenerate plantations. These measures are expected to increase yields to about two tons of palm oil per hectare, up from 500 kilograms currently—a 300% increase.
The Lengue and Eséka projects are part of a broader investment program backed by the government. Opalm plans to build five palm oil processing plants across the country over the next five years, with total investment estimated at CFA45 billion.
The goal is to increase local production by more than 100,000 tons and reduce the country’s palm oil deficit by about 50%, cutting reliance on imports.
“These investments will bring significant added value to our agriculture,” Mbairobe said, noting that the program aligns with the government’s import-substitution strategy aimed at improving the country’s trade balance.
According to the National Institute of Statistics, Cameroon’s trade deficit reached CFA2,145.2 billion in 2025, up 23% year-on-year. Ecofin Agency
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April 16, 2026
Malaysia plans phased expansion of biodiesel programme
With surging crude oil prices driven by the conflict in Iran and the closure of the Strait of Hormuz, the Malaysian government is planning to introduce a phased expansion of its 20% palm oil-based biodiesel (B20) programme nationwide, according to a Reuters report quoting Plantation and Commodities Minister Noraini Ahmad.
As the world’s second largest producer of palm oil, Malaysia currently applies a B10 biodiesel mandate for the transport sector, with B20 in place in the states of Labuan, Langkawi and most of Sarawak.
However, recent surges in crude oil prices had renewed calls for the government to accelerate the shift towards higher biodiesel blends, the 7 April report said.
In response to questions from Reuters, Ahmad said the government remained committed to implementing initiatives to progressively increase biodiesel blend usage over time.
“Currently, most areas in Malaysia are still on a B10 blend for the transportation sector,” she said.
“Therefore, there is still significant room to support an increase in the national biodiesel blend from B10 to B20 and B30.”
Top palm oil producer Indonesia implemented its mandatory B40 biodiesel programme and was looking to begin the introduction of B50 in July, the report said.
Previous increases in Indonesian domestic blending mandates had created global supply tightness, making palm oil more expensive than rival oils, Reuters wrote.
Malaysian biodiesel production totalled 975,207 tonnes in 2025, meaning biodiesel production plants were operating well below their maximum production capacity of 2.36M tonnes, Ahmad said.
As part of the drive to increase biodiesel mandates, blending depot infrastructure across the country should be prioritised for upgrading, she added.
Under a five-year programme, allocations have been approved to upgrade biodiesel blending depot facilities to B20/B30 in areas including Sandakan, Tawau, Sepanggar and Bintulu to support low-carbon alternative fuel usage. OFI Magazine
--------
Malaysia to tap idle biodiesel capacity to cushion fuel price shocks
Malaysia will raise its biodiesel blend mandate from 10% (B10) to 15% or B15, to safeguard domestic diesel supply and reduce reliance on imported fossil fuels, Economy Minister Akmal Nasrullah Mohd Nasir said April 14.
The transition will begin with a rollout of B12 blending mandate, as Malaysia looks to accelerate its renewable energy transition in response to supply disruptions triggered by the crisis in West Asia, Nasir said in a televised announcement after a governmental briefing on the global energy crisis.
Malaysia is the world's second-largest producer and exporter of palm oil. Palm oil and its byproducts are the main source of feedstock for the country's biodiesel industry.
Malaysia has a B10 mandate for its transportation sector, but a B20 mandate has been implemented in the territory of Labuan, Langkawi Island and the state of Sarawak, excluding the town of Bintulu. SP Global
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Malaysia's palm oil-based biodiesel push to add 300,000 tons in demand, says MPOB
KUALA LUMPUR: Malaysia's palm oil-based biodiesel consumption is set to rise by more than 300,000 metric tons annually, the Malaysian Palm Oil Board said, as the country joins top producer Indonesia in raising blending mandates to reduce reliance on energy imports.
On Tuesday, the Malaysian government said it would increase its 10% biodiesel mandate, known as B10, to a 15% biodiesel blend without giving a timeline. It will start with a 12% blend without incurring any additional production costs and using only existing biodiesel blending plants.
Malaysia, the world's second-largest palm oil producer, currently imposes the B10 mandate for the transportation sector, though a 20% mandate has been implemented in the federal territory of Labuan, Langkawi island and the state of Sarawak, excluding the town of Bintulu.
The move from B10 to B12 is expected to increase biodiesel consumption by an additional 130,000 tons per year, while the subsequent expansion to B15 is estimated to boost consumption by about 204,000 tons annually, MPOB Director General Ahmad Parveez Ghulam Kadir told Reuters on Thursday in an email response. The StarMY
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Palm Oil Surface Water Tax Feared to Backfire on B50 Biodiesel
Jakarta. An analyst has urged Indonesia’s regional leaders to reconsider the proposed surface water tax for the palm oil sector, as it can backfire on the nationwide biodiesel program.
Some of Indonesia’s regional governments are mulling collecting a monthly water surface tax of Rp 1,700 (almost $0.10) per palm trunk. Riau, West Sumatra, and Bengkulu are among those that are drafting the regulations.
Muhamad Zainal Arifin, the director for the natural resource think-tank Pustaka Alam, said this could cause a setback on the B50 rollout that will start in July. This is where Indonesia raises the mandatory palm oil blend in diesel from the current 40% to 50% in a bid to cut energy imports. But a higher mandatory palm oil blend means Indonesia needs to produce more than the current levels. This tax will only add a financial burden on producers.
“The surface water tax can be an indirect sabotage of the national energy policy. The tax will only lead to additional costs for the palm oil industry,” Zainal said in Jakarta on Wednesday.
“Oil palm trees only absorb rainwater or dew naturally through the soil, not surface water, using pumps. Taxing the natural processes of plants is a form of imposing regulations,” he said.
According to Zainal, the plan also “lacks legal basis” and potentially violates existing regulations, hence possibly deterring investors' interests. The current regulatory framework defines that surface water tax is only possible for water extraction activities. The term surface water also usually refers to rivers, lakes, reservoirs, swamps, or other bodies of water that do not infiltrate underground.
“As long as there is no actual extraction of water from a river or lake, there is no object of surface water tax. It is impossible to measure the cubic meters of surface water used by oil palm trees," Zainal said.
The West Sumatra provincial government is aiming to collect Rp 1 trillion ($58.3 million) in surface water tax. For starters, it has set a target to amass Rp 594 billion ($34.6 million) from plantations not owned by smallholders. Jakarta Globe
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Cameroon Plans CFA17 Billion Palm Oil Investment to Cut Import Dependence
Cameroon is ramping up investment in its palm oil sector, with new projects expected to inject significant funding into key production areas while boosting local output.
The construction of a new palm oil processing plant in Lengue, in the Moungo division, and the expansion of a former Socapalm facility in Eséka—recently acquired by Opalm—are expected to channel around CFA17 billion into these two production basins. According to Opalm, the investments could generate more than CFA11 billion in annual income for palm fruit producers.
Speaking on April 8, 2026, during the groundbreaking ceremony in Lengue, Patrice Yantho, coordinator of Opalm’s investment program, said the new plant will have a processing capacity of 25,000 tons per year and cost CFA9 billion. The project is expected to create more than 340 direct and indirect jobs, while guaranteeing annual purchases of palm fruit worth over CFA5 billion from local farmers.
Even before construction begins, Opalm says it has already made significant purchases in the Moungo area. Since 2024, the company has collected more than 10,000 tons of palm fruit, paying over CFA8 billion to producers.
The expected impact is even greater in Eséka. According to Yantho, Opalm has purchased more than 15,000 tons of palm fruit in less than two months, valued at over CFA1.2 billion. The company aims to reach 75,000 tons annually, representing around CFA6 billion in purchases, once a new processing unit is installed. This upgrade will raise production capacity to 25,000 tons, compared with the current 7,000 tons.
Agriculture Minister Gabriel Mbairobe said the investments will not only increase production and farmer incomes but also improve plantation productivity. This will be achieved through a partnership agreement signed in December 2025 between Opalm and the government.
Under the agreement, Opalm will support farmers with fertilizers and high-yield seeds to regenerate plantations. These measures are expected to increase yields to about two tons of palm oil per hectare, up from 500 kilograms currently—a 300% increase.
The Lengue and Eséka projects are part of a broader investment program backed by the government. Opalm plans to build five palm oil processing plants across the country over the next five years, with total investment estimated at CFA45 billion.
The goal is to increase local production by more than 100,000 tons and reduce the country’s palm oil deficit by about 50%, cutting reliance on imports.
“These investments will bring significant added value to our agriculture,” Mbairobe said, noting that the program aligns with the government’s import-substitution strategy aimed at improving the country’s trade balance.
According to the National Institute of Statistics, Cameroon’s trade deficit reached CFA2,145.2 billion in 2025, up 23% year-on-year.
Brice R. Mbodiam/ Business in Cameroon
Malaysia plans phased expansion of biodiesel programme
With surging crude oil prices driven by the conflict in Iran and the closure of the Strait of Hormuz, the Malaysian government is planning to introduce a phased expansion of its 20% palm oil-based biodiesel (B20) programme nationwide, according to a Reuters report quoting Plantation and Commodities Minister Noraini Ahmad.
As the world’s second largest producer of palm oil, Malaysia currently applies a B10 biodiesel mandate for the transport sector, with B20 in place in the states of Labuan, Langkawi and most of Sarawak.
However, recent surges in crude oil prices had renewed calls for the government to accelerate the shift towards higher biodiesel blends, the 7 April report said.
In response to questions from Reuters, Ahmad said the government remained committed to implementing initiatives to progressively increase biodiesel blend usage over time.
“Currently, most areas in Malaysia are still on a B10 blend for the transportation sector,” she said.
“Therefore, there is still significant room to support an increase in the national biodiesel blend from B10 to B20 and B30.”
Top palm oil producer Indonesia implemented its mandatory B40 biodiesel programme and was looking to begin the introduction of B50 in July, the report said.
Previous increases in Indonesian domestic blending mandates had created global supply tightness, making palm oil more expensive than rival oils, Reuters wrote.
Malaysian biodiesel production totalled 975,207 tonnes in 2025, meaning biodiesel production plants were operating well below their maximum production capacity of 2.36M tonnes, Ahmad said.
As part of the drive to increase biodiesel mandates, blending depot infrastructure across the country should be prioritised for upgrading, she added.
Under a five-year programme, allocations have been approved to upgrade biodiesel blending depot facilities to B20/B30 in areas including Sandakan, Tawau, Sepanggar and Bintulu to support low-carbon alternative fuel usage. OFI Magazine
--------
Malaysia to tap idle biodiesel capacity to cushion fuel price shocks
Malaysia will raise its biodiesel blend mandate from 10% (B10) to 15% or B15, to safeguard domestic diesel supply and reduce reliance on imported fossil fuels, Economy Minister Akmal Nasrullah Mohd Nasir said April 14.
The transition will begin with a rollout of B12 blending mandate, as Malaysia looks to accelerate its renewable energy transition in response to supply disruptions triggered by the crisis in West Asia, Nasir said in a televised announcement after a governmental briefing on the global energy crisis.
Malaysia is the world's second-largest producer and exporter of palm oil. Palm oil and its byproducts are the main source of feedstock for the country's biodiesel industry.
Malaysia has a B10 mandate for its transportation sector, but a B20 mandate has been implemented in the territory of Labuan, Langkawi Island and the state of Sarawak, excluding the town of Bintulu. SP Global
--------
Malaysia's palm oil-based biodiesel push to add 300,000 tons in demand, says MPOB
KUALA LUMPUR: Malaysia's palm oil-based biodiesel consumption is set to rise by more than 300,000 metric tons annually, the Malaysian Palm Oil Board said, as the country joins top producer Indonesia in raising blending mandates to reduce reliance on energy imports.
On Tuesday, the Malaysian government said it would increase its 10% biodiesel mandate, known as B10, to a 15% biodiesel blend without giving a timeline. It will start with a 12% blend without incurring any additional production costs and using only existing biodiesel blending plants.
Malaysia, the world's second-largest palm oil producer, currently imposes the B10 mandate for the transportation sector, though a 20% mandate has been implemented in the federal territory of Labuan, Langkawi island and the state of Sarawak, excluding the town of Bintulu.
The move from B10 to B12 is expected to increase biodiesel consumption by an additional 130,000 tons per year, while the subsequent expansion to B15 is estimated to boost consumption by about 204,000 tons annually, MPOB Director General Ahmad Parveez Ghulam Kadir told Reuters on Thursday in an email response. The StarMY
--------
Palm Oil Surface Water Tax Feared to Backfire on B50 Biodiesel
Jakarta. An analyst has urged Indonesia’s regional leaders to reconsider the proposed surface water tax for the palm oil sector, as it can backfire on the nationwide biodiesel program.
Some of Indonesia’s regional governments are mulling collecting a monthly water surface tax of Rp 1,700 (almost $0.10) per palm trunk. Riau, West Sumatra, and Bengkulu are among those that are drafting the regulations.
Muhamad Zainal Arifin, the director for the natural resource think-tank Pustaka Alam, said this could cause a setback on the B50 rollout that will start in July. This is where Indonesia raises the mandatory palm oil blend in diesel from the current 40% to 50% in a bid to cut energy imports. But a higher mandatory palm oil blend means Indonesia needs to produce more than the current levels. This tax will only add a financial burden on producers.
“The surface water tax can be an indirect sabotage of the national energy policy. The tax will only lead to additional costs for the palm oil industry,” Zainal said in Jakarta on Wednesday.
“Oil palm trees only absorb rainwater or dew naturally through the soil, not surface water, using pumps. Taxing the natural processes of plants is a form of imposing regulations,” he said.
According to Zainal, the plan also “lacks legal basis” and potentially violates existing regulations, hence possibly deterring investors' interests. The current regulatory framework defines that surface water tax is only possible for water extraction activities. The term surface water also usually refers to rivers, lakes, reservoirs, swamps, or other bodies of water that do not infiltrate underground.
“As long as there is no actual extraction of water from a river or lake, there is no object of surface water tax. It is impossible to measure the cubic meters of surface water used by oil palm trees," Zainal said.
The West Sumatra provincial government is aiming to collect Rp 1 trillion ($58.3 million) in surface water tax. For starters, it has set a target to amass Rp 594 billion ($34.6 million) from plantations not owned by smallholders. Jakarta Globe
--------
Cameroon Plans CFA17 Billion Palm Oil Investment to Cut Import Dependence
Cameroon is ramping up investment in its palm oil sector, with new projects expected to inject significant funding into key production areas while boosting local output.
The construction of a new palm oil processing plant in Lengue, in the Moungo division, and the expansion of a former Socapalm facility in Eséka—recently acquired by Opalm—are expected to channel around CFA17 billion into these two production basins. According to Opalm, the investments could generate more than CFA11 billion in annual income for palm fruit producers.
Speaking on April 8, 2026, during the groundbreaking ceremony in Lengue, Patrice Yantho, coordinator of Opalm’s investment program, said the new plant will have a processing capacity of 25,000 tons per year and cost CFA9 billion. The project is expected to create more than 340 direct and indirect jobs, while guaranteeing annual purchases of palm fruit worth over CFA5 billion from local farmers.
Even before construction begins, Opalm says it has already made significant purchases in the Moungo area. Since 2024, the company has collected more than 10,000 tons of palm fruit, paying over CFA8 billion to producers.
The expected impact is even greater in Eséka. According to Yantho, Opalm has purchased more than 15,000 tons of palm fruit in less than two months, valued at over CFA1.2 billion. The company aims to reach 75,000 tons annually, representing around CFA6 billion in purchases, once a new processing unit is installed. This upgrade will raise production capacity to 25,000 tons, compared with the current 7,000 tons.
Agriculture Minister Gabriel Mbairobe said the investments will not only increase production and farmer incomes but also improve plantation productivity. This will be achieved through a partnership agreement signed in December 2025 between Opalm and the government.
Under the agreement, Opalm will support farmers with fertilizers and high-yield seeds to regenerate plantations. These measures are expected to increase yields to about two tons of palm oil per hectare, up from 500 kilograms currently—a 300% increase.
The Lengue and Eséka projects are part of a broader investment program backed by the government. Opalm plans to build five palm oil processing plants across the country over the next five years, with total investment estimated at CFA45 billion.
The goal is to increase local production by more than 100,000 tons and reduce the country’s palm oil deficit by about 50%, cutting reliance on imports.
“These investments will bring significant added value to our agriculture,” Mbairobe said, noting that the program aligns with the government’s import-substitution strategy aimed at improving the country’s trade balance.
According to the National Institute of Statistics, Cameroon’s trade deficit reached CFA2,145.2 billion in 2025, up 23% year-on-year.
Brice R. Mbodiam/ Business in Cameroon
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April 15, 2026
Indonesia strengthens palm oil industry through sustainability certification
Indonesia’s palm oil industry is a major pillar of the national economy, with more than 16 million hectares under cultivation and crude palm oil (CPO) output reaching 51.66 million tonnes in 2025. This scale has helped the country maintain its position as one of the world’s largest producers and exporters of palm oil.
Jakarta (VNA) – Indonesia is accelerating the implementation of the Indonesian Sustainable Palm Oil (ISPO) certification across its palm oil processing industry, in a move aimed at enhancing sustainability governance and boosting the sector’s global competitiveness.
According to the Indonesian Ministry of Industry, the certification will be extended to the downstream sector to ensure that the entire palm oil value chain complies with sustainability standards. The process is being carried out through the certification mechanism of Indonesia’s National Accreditation Committee (KAN).
Indonesian Minister of Industry Agus Gumiwang Kartasasmita said the initiative is designed not only to improve domestic production standards but also to help Indonesia maintain and expand its market share amid increasingly stringent global sustainability requirements.
Under current regulations, ISPO certification will become mandatory for downstream palm oil businesses by 2027, following Presidential Regulation No. 16/2025 and related implementing rules.
Authorities are working to complete the necessary certification schemes and accreditation systems to ensure smooth enforcement.
The minister highlighted that agriculture, particularly palm oil, remains a key driver of Indonesia’s economic growth. Data from the March 2026 Industrial Confidence Index (IKI) shows the sector continues to expand, with a reading of 51.86 points.
Indonesia’s palm oil industry is a major pillar of the national economy, with more than 16 million hectares under cultivation and crude palm oil (CPO) output reaching 51.66 million tonnes in 2025. This scale has helped the country maintain its position as one of the world’s largest producers and exporters of palm oil.
Acting Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika noted that export earnings from palm oil and its derivatives reached 44.65 billion USD in 2025, while imports stood at just 1.417 billion USD, generating a trade surplus of 43.23 billion USD.
He said the figures reflect the effectiveness of Indonesia’s downstream development strategy, which has increased added value, expanded export markets, and created a multiplier effect across the economy. The sector currently provides employment for around 16.5 million people.
It is believed that expanding the ISPO certification will enhance the international credibility of Indonesia’s palm oil industry, while ensuring long-term environmental, social, and economic sustainability. VNA
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EUDR is starting to steer company actions, despite slow progress: Report
Some companies have made headway toward removing deforestation from their supply chains in the last year, in preparation for the European Union Deforestation Regulation (EUDR), according to a new report by the NGO Global Canopy. This shows that the upcoming regulation is driving some progress despite an unfavorable global climate for environmental commitments.
The Forest 500 Report 2026 examined the corporate commitments on deforestation, land conversion and human rights of the 500 companies with most influence over nine commodities linked to deforestation and covered by the EUDR: beef, cocoa, coffee, leather, palm, pulp and paper, rubber, soy and timber. It found that more than a quarter of companies reported new forms of implementation action in 2025, and 14% specifically mentioned the EUDR in documents about deforestation commitments. Forest 500 is based on public documents, and more companies could be making decisions based on the EUDR in private, the report notes.
The EUDR is due to take effect Dec. 30 this year after several delays.
“The EUDR is the main focus of this report. The key takeaway is that it’s working, it’s appearing in lots of company reporting, with 68 companies in our assessment citing it in regard to deforestation commitments, especially with traceability,” said Chloe Rollscane, a research associate at Global Canopy. “Even though [the EUDR] is not in place yet, it’s obvious that companies are getting ready for it.”
These companies include producers and processors in source countries, as well as traders and retailers in the EU, Rollscane told Mongabay in a video interview.
One example in the report is Peruvian coffee company Corporación Perhusa, which said its coffee plots meet EUDR requirements based on analysis of official deforestation maps. Another is restaurant chain Domino’s Pizza, which stated it aimed to make its European operations EUDR-compliant by the end of 2025. Domino’s did not reply to an email from Mongabay about whether this had been achieved. Mongabay
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Global energy crisis boosts appeal of Malaysian palm oil in Asian market, says minister
PUTRAJAYA (April 15): Demand for palm oil is expected to continue increasing from traditional importing countries such as China and India, driven by global geopolitical uncertainty as well as their need to ensure energy and food security.
Minister of Plantation and Commodities Datuk Seri Noraini Ahmad said China, as Malaysia’s second-largest palm oil importer, is showing a tendency to increase stockpile as a precautionary measure against potential logistical disruptions in the Strait of Hormuz.
She said China’s high dependence on oil imports from Iran, and rising global energy prices, has increased input costs for its downstream industries such as oleochemicals and biodiesel, thereby driving demand for Malaysian palm oil as a more competitive alternative.
“Given that China imports almost 90% of its oil from Iran, rising global energy prices have increased input costs for their downstream industries (oleochemicals and biodiesel).
“This has led to demand for Malaysian palm oil as a more competitive raw material alternative compared to soyabean oil, which has been affected by US tariffs,” she told Bernama.
Noraini said this will indirectly shift demand toward sustainable raw materials and high-tech components in line with their focus on the green economy and food security.
For India, Malaysia’s largest palm oil importer, she said the rapid growth of the country’s manufacturing and infrastructure sectors continues to boost demand for Malaysia’s key commodity, particularly palm oil and oleochemical products.
She said that although India is facing inflationary pressure following rising global crude oil prices, palm oil remains the preferred choice due to its cost efficiency compared to other vegetable oils.
“Geopolitical uncertainty has caused global vegetable oil prices to rise in line with crude oil prices, putting pressure on importers’ profit margins in India. However, palm oil remains the preferred choice due to its cost efficiency compared to other vegetable oils,” she said.
Meanwhile, Noraini said the ministry is focusing on diversifying export value by strengthening downstream products such as oleochemicals, specialty fats, and pharmaceuticals, which have more stable demand even in challenging economic conditions.
She said this approach is also supported through bilateral cooperation via platforms such as the Regional Comprehensive Economic Partnership (RCEP) for China and the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA).
On Tuesday, Kenanga Investment Bank Bhd said crude palm oil inventories are expected to decline in the second quarter of this year due to higher export demand as buyers increase stock holdings amid uncertainty surrounding the ceasefire situation in West Asia.
It said ending inventory for March was the lowest so far this year and added that despite stronger month-on-month production, palm oil inventories closed 16% lower in March due to a surge in exports to nearly a 10-year high.
Palm oil biodiesel as strategic bet to reduce dependence on fossil fuels
In addressing efforts to reduce reliance on imported fossil fuels, Noraini said the government is committed to increasing the use of palm oil biodiesel through the implementation of the National Biodiesel Programme.
Dependence on fossil fuels can be reduced through increasing biodiesel blending to B20 and B30,” she said.
She said most areas in Malaysia currently use a B10 blend in the transport sector, indicating significant room for increased biodiesel usage.
According to her, the country’s biodiesel production in 2025 stood at 975,207.29 tonnes compared to a maximum capacity of 2.36 million tonnes, showing that biodiesel plants are still operating below actual capacity.
In the latest development, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said on Tuesday that the government has agreed to increase the biodiesel blending rate from B10 to B15, starting with B12, without any additional cost, to extend diesel supply availability amid the West Asia crisis.
He said the ongoing implementation of B10 proves that the foundation for its execution already exists, allowing higher biodiesel blending to be implemented using existing infrastructure.
“As a medium-term step, we must accelerate economic restructuring through the transition to renewable energy so that energy sources are more securely available domestically.
“In this context, the government is not only stabilising supply and prices, but also building long-term resilience, as recovery from this crisis is expected to take up to 18 months,” he said at a global energy crisis briefing on Tuesday. The Edge
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MPOB strengthens R&D to shore up palm oil competitiveness amid geopolitical uncertainty
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) Programme Advisory Committee (PAC) meeting is focusing on strengthening research and development (R&D) strategy amid ongoing geopolitical instability, particularly in West Asia.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam said geopolitical tensions have triggered ripple effects across multiple sectors, including the global oils and fats market, underscoring the need for a more strategic, science-based approach to strengthening the industry.
"In this regard, the PAC plays a key role in aligning MPOB’s R&D direction with industry needs and global developments.
"This approach covers the entire palm oil value chain, from upstream to downstream, with emphasis on innovation, technological application and socio-economic impact,” he said in a statement.
The MPOB PAC 2026 meeting, held over four days starting yesterday, also discussed strategic R&D approaches to streamline initiatives and enhance the competitiveness of the country’s palm oil industry in line with the government’s mandate under the National Agricommodity Policy 2021-2030 (DAKN2030).
Initiatives under the policy include the implementation of mandatory Malaysian Sustainable Palm Oil (MSPO 2.0) certification, oil palm replanting programmes for smallholders involving about RM171 million in expenditure, development of the sustainable aviation fuel segment, and the integration of automation technologies through artificial intelligence and drones. - Bernama/ The StarMY
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Indonesia strengthens palm oil industry through sustainability certification
Indonesia’s palm oil industry is a major pillar of the national economy, with more than 16 million hectares under cultivation and crude palm oil (CPO) output reaching 51.66 million tonnes in 2025. This scale has helped the country maintain its position as one of the world’s largest producers and exporters of palm oil.
Jakarta (VNA) – Indonesia is accelerating the implementation of the Indonesian Sustainable Palm Oil (ISPO) certification across its palm oil processing industry, in a move aimed at enhancing sustainability governance and boosting the sector’s global competitiveness.
According to the Indonesian Ministry of Industry, the certification will be extended to the downstream sector to ensure that the entire palm oil value chain complies with sustainability standards. The process is being carried out through the certification mechanism of Indonesia’s National Accreditation Committee (KAN).
Indonesian Minister of Industry Agus Gumiwang Kartasasmita said the initiative is designed not only to improve domestic production standards but also to help Indonesia maintain and expand its market share amid increasingly stringent global sustainability requirements.
Under current regulations, ISPO certification will become mandatory for downstream palm oil businesses by 2027, following Presidential Regulation No. 16/2025 and related implementing rules.
Authorities are working to complete the necessary certification schemes and accreditation systems to ensure smooth enforcement.
The minister highlighted that agriculture, particularly palm oil, remains a key driver of Indonesia’s economic growth. Data from the March 2026 Industrial Confidence Index (IKI) shows the sector continues to expand, with a reading of 51.86 points.
Indonesia’s palm oil industry is a major pillar of the national economy, with more than 16 million hectares under cultivation and crude palm oil (CPO) output reaching 51.66 million tonnes in 2025. This scale has helped the country maintain its position as one of the world’s largest producers and exporters of palm oil.
Acting Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika noted that export earnings from palm oil and its derivatives reached 44.65 billion USD in 2025, while imports stood at just 1.417 billion USD, generating a trade surplus of 43.23 billion USD.
He said the figures reflect the effectiveness of Indonesia’s downstream development strategy, which has increased added value, expanded export markets, and created a multiplier effect across the economy. The sector currently provides employment for around 16.5 million people.
It is believed that expanding the ISPO certification will enhance the international credibility of Indonesia’s palm oil industry, while ensuring long-term environmental, social, and economic sustainability. VNA
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EUDR is starting to steer company actions, despite slow progress: Report
- Although more progress is needed, a growing number of companies are adopting and implementing deforestation commitments ahead of the European Union Deforestation Regulation (EUDR) taking effect in December, according to a new report analyzing public data on 500 companies exposed to deforestation in their supply chains.
- Global Canopy’s newest Forest 500 Report found that 14% of companies mentioned the EUDR in deforestation commitments and more than 25% reported new implementation actions in 2025. The number of companies with traceability mechanisms also increased.
- The report also found that 24 companies have never published deforestation commitments and that 14 backtracked on previous commitments in 2025.
- The legal uncertainty surrounding the EUDR and its implementation disincentivizes companies from adopting systems for due diligence on deforestation, experts say.
Some companies have made headway toward removing deforestation from their supply chains in the last year, in preparation for the European Union Deforestation Regulation (EUDR), according to a new report by the NGO Global Canopy. This shows that the upcoming regulation is driving some progress despite an unfavorable global climate for environmental commitments.
The Forest 500 Report 2026 examined the corporate commitments on deforestation, land conversion and human rights of the 500 companies with most influence over nine commodities linked to deforestation and covered by the EUDR: beef, cocoa, coffee, leather, palm, pulp and paper, rubber, soy and timber. It found that more than a quarter of companies reported new forms of implementation action in 2025, and 14% specifically mentioned the EUDR in documents about deforestation commitments. Forest 500 is based on public documents, and more companies could be making decisions based on the EUDR in private, the report notes.
The EUDR is due to take effect Dec. 30 this year after several delays.
“The EUDR is the main focus of this report. The key takeaway is that it’s working, it’s appearing in lots of company reporting, with 68 companies in our assessment citing it in regard to deforestation commitments, especially with traceability,” said Chloe Rollscane, a research associate at Global Canopy. “Even though [the EUDR] is not in place yet, it’s obvious that companies are getting ready for it.”
These companies include producers and processors in source countries, as well as traders and retailers in the EU, Rollscane told Mongabay in a video interview.
One example in the report is Peruvian coffee company Corporación Perhusa, which said its coffee plots meet EUDR requirements based on analysis of official deforestation maps. Another is restaurant chain Domino’s Pizza, which stated it aimed to make its European operations EUDR-compliant by the end of 2025. Domino’s did not reply to an email from Mongabay about whether this had been achieved. Mongabay
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Global energy crisis boosts appeal of Malaysian palm oil in Asian market, says minister
PUTRAJAYA (April 15): Demand for palm oil is expected to continue increasing from traditional importing countries such as China and India, driven by global geopolitical uncertainty as well as their need to ensure energy and food security.
Minister of Plantation and Commodities Datuk Seri Noraini Ahmad said China, as Malaysia’s second-largest palm oil importer, is showing a tendency to increase stockpile as a precautionary measure against potential logistical disruptions in the Strait of Hormuz.
She said China’s high dependence on oil imports from Iran, and rising global energy prices, has increased input costs for its downstream industries such as oleochemicals and biodiesel, thereby driving demand for Malaysian palm oil as a more competitive alternative.
“Given that China imports almost 90% of its oil from Iran, rising global energy prices have increased input costs for their downstream industries (oleochemicals and biodiesel).
“This has led to demand for Malaysian palm oil as a more competitive raw material alternative compared to soyabean oil, which has been affected by US tariffs,” she told Bernama.
Noraini said this will indirectly shift demand toward sustainable raw materials and high-tech components in line with their focus on the green economy and food security.
For India, Malaysia’s largest palm oil importer, she said the rapid growth of the country’s manufacturing and infrastructure sectors continues to boost demand for Malaysia’s key commodity, particularly palm oil and oleochemical products.
She said that although India is facing inflationary pressure following rising global crude oil prices, palm oil remains the preferred choice due to its cost efficiency compared to other vegetable oils.
“Geopolitical uncertainty has caused global vegetable oil prices to rise in line with crude oil prices, putting pressure on importers’ profit margins in India. However, palm oil remains the preferred choice due to its cost efficiency compared to other vegetable oils,” she said.
Meanwhile, Noraini said the ministry is focusing on diversifying export value by strengthening downstream products such as oleochemicals, specialty fats, and pharmaceuticals, which have more stable demand even in challenging economic conditions.
She said this approach is also supported through bilateral cooperation via platforms such as the Regional Comprehensive Economic Partnership (RCEP) for China and the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA).
On Tuesday, Kenanga Investment Bank Bhd said crude palm oil inventories are expected to decline in the second quarter of this year due to higher export demand as buyers increase stock holdings amid uncertainty surrounding the ceasefire situation in West Asia.
It said ending inventory for March was the lowest so far this year and added that despite stronger month-on-month production, palm oil inventories closed 16% lower in March due to a surge in exports to nearly a 10-year high.
Palm oil biodiesel as strategic bet to reduce dependence on fossil fuels
In addressing efforts to reduce reliance on imported fossil fuels, Noraini said the government is committed to increasing the use of palm oil biodiesel through the implementation of the National Biodiesel Programme.
Dependence on fossil fuels can be reduced through increasing biodiesel blending to B20 and B30,” she said.
She said most areas in Malaysia currently use a B10 blend in the transport sector, indicating significant room for increased biodiesel usage.
According to her, the country’s biodiesel production in 2025 stood at 975,207.29 tonnes compared to a maximum capacity of 2.36 million tonnes, showing that biodiesel plants are still operating below actual capacity.
In the latest development, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said on Tuesday that the government has agreed to increase the biodiesel blending rate from B10 to B15, starting with B12, without any additional cost, to extend diesel supply availability amid the West Asia crisis.
He said the ongoing implementation of B10 proves that the foundation for its execution already exists, allowing higher biodiesel blending to be implemented using existing infrastructure.
“As a medium-term step, we must accelerate economic restructuring through the transition to renewable energy so that energy sources are more securely available domestically.
“In this context, the government is not only stabilising supply and prices, but also building long-term resilience, as recovery from this crisis is expected to take up to 18 months,” he said at a global energy crisis briefing on Tuesday. The Edge
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MPOB strengthens R&D to shore up palm oil competitiveness amid geopolitical uncertainty
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) Programme Advisory Committee (PAC) meeting is focusing on strengthening research and development (R&D) strategy amid ongoing geopolitical instability, particularly in West Asia.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam said geopolitical tensions have triggered ripple effects across multiple sectors, including the global oils and fats market, underscoring the need for a more strategic, science-based approach to strengthening the industry.
"In this regard, the PAC plays a key role in aligning MPOB’s R&D direction with industry needs and global developments.
"This approach covers the entire palm oil value chain, from upstream to downstream, with emphasis on innovation, technological application and socio-economic impact,” he said in a statement.
The MPOB PAC 2026 meeting, held over four days starting yesterday, also discussed strategic R&D approaches to streamline initiatives and enhance the competitiveness of the country’s palm oil industry in line with the government’s mandate under the National Agricommodity Policy 2021-2030 (DAKN2030).
Initiatives under the policy include the implementation of mandatory Malaysian Sustainable Palm Oil (MSPO 2.0) certification, oil palm replanting programmes for smallholders involving about RM171 million in expenditure, development of the sustainable aviation fuel segment, and the integration of automation technologies through artificial intelligence and drones. - Bernama/ The StarMY
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April 14, 2026
Report: With EUDR looming, one in three businesses still lack deforestation commitments
This is according to Global Canopy’s latest Forest 500 report, which tracks the deforestation and ecosystem conversion work of hundreds of the world’s largest companies operating in forest-risk supply chains.
Companies in beef, cocoa, coffee, leather, palm oil, pulp and paper, rubber, soy and timber value chains are included in the analysis.
Across eight of these commodities, companies collectively improved their supply chain traceability mechanisms. The only commodity bucking the trend was beef.
In all commodities, more than one-quarter of companies reported forms of implementation action in 2025 which they had not reported in 2024.
Just under one-fifth of the companies publicly stated their need to prepare for the EU Deforestation Regulation (EUDR) as a reason for taking these actions.
EUDR will mean that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market. The burden of complying or explaining sits with importing businesses. Deforestation after 31 December 2020 is taken into account. Edie
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Nike among companies retreating on deforestation commitments
Fourteen global companies reduced or reworded their deforestation commitments in 2025, finds report
US sportswear giant Nike has dropped its commitment made in 2024 to only source packaging from Forest Stewardship Council-certified forests and has stopped reporting on its paper and pulp sourcing, finds a report by non-profit Global Canopy.
The company is among 14 businesses that have “backtracked” on deforestation measures in the past year, says Global Canopy. It counts removing public commitments, downgrading wording or withdrawing from certification schemes as regressions in its annual assessment of corporate deforestation disclosures.
The report — which covers the top 500 companies globally that trade in beef, cocoa, coffee, leather, palm oil, pulp and paper, rubber, soya and timber — finds that just over half (53 per cent) did not disclose how they are tracking their supply chains in 2025, down from 58 per cent in 2024.
Nike’s sustainability reporting shows that raw materials used to make its products (excluding packaging) account for 34 per cent of its emissions.
Paper is exempt from the upcoming EU Deforestation Regulation, but key materials used by the brand — notably leather and rubber — are subject to the law. Sustainable Views
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Stronger demand signals upcycle for Malaysia’s palm oil sector
MALAYSIA’S plantation sector remains one of the backbone industries of the economy, with palm oil at its core.
In recent years, the sector has been shaped by a mix of structural challenges and cyclical opportunities.
Despite these pressures, the outlook often turns favourable during periods of global uncertainty.
Palm oil tends to benefit from supply disruptions in other edible oils like soybean and sunflower oil, as well as from higher crude oil prices that lift biodiesel demand.
This positions Malaysian planters as indirect beneficiaries of geopolitical tensions and energy market volatility.
Note that March 2026 production uptick to 1.377 mil MT, at -1% year-on-year (YoY) probably marks the start of this year’s seasonal upcycle.
Despite stronger month-on-month (MoM) production, inventory closed 16% lower in March at 2.267 mil MT and came in 7% below Kenanga, but 3% above consensus, expectation.
The MoM dip in inventory was due a surge to near 10-year high in exports.
That the strong March exports of 1.551 mil MT occurred alongside firmer March crude palm oil (CPO) price of RM4,321 per MT (up 6% MoM, -9% YoY from unusually strong RM4,724 last year), this inelasticity in exports to higher prices suggests rising food security concerns arising from the Middle East conflict. Focus Malaysia
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Indonesia Accelerates De-Dollarization as Local Currency Transactions Surge 163%
Jakarta. Indonesia is accelerating efforts to reduce reliance on the US dollar by expanding the use of local currencies in cross-border transactions, with the value of such transactions surging 163% year-on-year in early 2026.Indonesia Market Insights
Under the local currency transaction (LCT) framework, total transactions reached $8.45 billion in January–February 2026, up sharply from $3.21 billion in the same period a year earlier, government data show. The growth was supported by a rising number of users, which reached 14,621 in February 2026, with an average of 16,030 monthly users—well above the 2025 average of 9,720.
Ferry Irawan, deputy for coordination of state-owned enterprise management and development at the Coordinating Ministry for Economic Affairs, said the LCT framework has continued to expand since its launch in 2018.
“LCT utilization has broadened across key sectors, including manufacturing, electricity and gas, transportation, trade, and services. This demonstrates LCT’s role as a concrete instrument to strengthen the rupiah and support real-sector activity,” Ferry said in a statement on Sunday.Jakarta Business Directory Jakarta Globe
Report: With EUDR looming, one in three businesses still lack deforestation commitments
This is according to Global Canopy’s latest Forest 500 report, which tracks the deforestation and ecosystem conversion work of hundreds of the world’s largest companies operating in forest-risk supply chains.
Companies in beef, cocoa, coffee, leather, palm oil, pulp and paper, rubber, soy and timber value chains are included in the analysis.
Across eight of these commodities, companies collectively improved their supply chain traceability mechanisms. The only commodity bucking the trend was beef.
In all commodities, more than one-quarter of companies reported forms of implementation action in 2025 which they had not reported in 2024.
Just under one-fifth of the companies publicly stated their need to prepare for the EU Deforestation Regulation (EUDR) as a reason for taking these actions.
EUDR will mean that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market. The burden of complying or explaining sits with importing businesses. Deforestation after 31 December 2020 is taken into account. Edie
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Nike among companies retreating on deforestation commitments
Fourteen global companies reduced or reworded their deforestation commitments in 2025, finds report
US sportswear giant Nike has dropped its commitment made in 2024 to only source packaging from Forest Stewardship Council-certified forests and has stopped reporting on its paper and pulp sourcing, finds a report by non-profit Global Canopy.
The company is among 14 businesses that have “backtracked” on deforestation measures in the past year, says Global Canopy. It counts removing public commitments, downgrading wording or withdrawing from certification schemes as regressions in its annual assessment of corporate deforestation disclosures.
The report — which covers the top 500 companies globally that trade in beef, cocoa, coffee, leather, palm oil, pulp and paper, rubber, soya and timber — finds that just over half (53 per cent) did not disclose how they are tracking their supply chains in 2025, down from 58 per cent in 2024.
Nike’s sustainability reporting shows that raw materials used to make its products (excluding packaging) account for 34 per cent of its emissions.
Paper is exempt from the upcoming EU Deforestation Regulation, but key materials used by the brand — notably leather and rubber — are subject to the law. Sustainable Views
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Stronger demand signals upcycle for Malaysia’s palm oil sector
MALAYSIA’S plantation sector remains one of the backbone industries of the economy, with palm oil at its core.
In recent years, the sector has been shaped by a mix of structural challenges and cyclical opportunities.
Despite these pressures, the outlook often turns favourable during periods of global uncertainty.
Palm oil tends to benefit from supply disruptions in other edible oils like soybean and sunflower oil, as well as from higher crude oil prices that lift biodiesel demand.
This positions Malaysian planters as indirect beneficiaries of geopolitical tensions and energy market volatility.
Note that March 2026 production uptick to 1.377 mil MT, at -1% year-on-year (YoY) probably marks the start of this year’s seasonal upcycle.
Despite stronger month-on-month (MoM) production, inventory closed 16% lower in March at 2.267 mil MT and came in 7% below Kenanga, but 3% above consensus, expectation.
The MoM dip in inventory was due a surge to near 10-year high in exports.
That the strong March exports of 1.551 mil MT occurred alongside firmer March crude palm oil (CPO) price of RM4,321 per MT (up 6% MoM, -9% YoY from unusually strong RM4,724 last year), this inelasticity in exports to higher prices suggests rising food security concerns arising from the Middle East conflict. Focus Malaysia
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Indonesia Accelerates De-Dollarization as Local Currency Transactions Surge 163%
Jakarta. Indonesia is accelerating efforts to reduce reliance on the US dollar by expanding the use of local currencies in cross-border transactions, with the value of such transactions surging 163% year-on-year in early 2026.Indonesia Market Insights
Under the local currency transaction (LCT) framework, total transactions reached $8.45 billion in January–February 2026, up sharply from $3.21 billion in the same period a year earlier, government data show. The growth was supported by a rising number of users, which reached 14,621 in February 2026, with an average of 16,030 monthly users—well above the 2025 average of 9,720.
Ferry Irawan, deputy for coordination of state-owned enterprise management and development at the Coordinating Ministry for Economic Affairs, said the LCT framework has continued to expand since its launch in 2018.
“LCT utilization has broadened across key sectors, including manufacturing, electricity and gas, transportation, trade, and services. This demonstrates LCT’s role as a concrete instrument to strengthen the rupiah and support real-sector activity,” Ferry said in a statement on Sunday.Jakarta Business Directory Jakarta Globe
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April 13, 2026
Tighter exports, biodiesel demand to support CPO price
KUALA LUMPUR: Crude palm oil (CPO) prices are expected to remain well supported amid tightening regional export supply, as Thailand and Indonesia prioritise domestic biodiesel programmes, alongside weather risks linked to a developing El Niño.
Public Investment Bank Bhd (PublicInvest) said Malaysia's palm oil inventories are likely to edge towards the psychological two million tonne level over the next two months.
Inventories recently recorded their sharpest decline since March 2023, as major consuming countries stepped up stockpiling amid heightened geopolitical tensions.
CPO prices also rallied in March, rising more than 19 per cent, supported by higher crude oil prices and rising freight costs following the escalation of Middle East conflicts.
These factors have boosted the appeal of biodiesel as a more secure alternative fuel, lifting demand for palm-based biofuels.
PublicInvest maintained its "Overweight" call on the plantation sector and reiterated its full-year CPO price forecast of RM4,400 per tonne.
On regional developments, Thailand is tightening palm oil exports to safeguard domestic supply.
The world's third-largest palm oil producer is projected to produce about 21.8 million tonnes of fresh fruit bunches, equivalent to 3.9 million tonnes of CPO, accounting for around 4.6 per cent of global output.
PublicInvest said the export curbs are aimed at building inventories for biodiesel production and stabilising domestic cooking oil prices amid intensifying geopolitical tensions.
The move is expected to further tighten regional export availability, especially as Indonesia continues to prioritise palm-based biodiesel for domestic consumption. NST
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B100 set to disrupt diesel costs says FELDA
KUALA LUMPUR: Felda's plan to roll out 100 per cent palm oil-based biodiesel (B100) could mark a significant shift in Malaysia's fuel landscape, offering a potentially cheaper alternative to conventional diesel amid persistent energy cost pressures.
Industry executives said the proposed B100 fuel, with an estimated factory price as low as RM.45 per litre, could deliver meaningful cost savings compared with current diesel prices of nearly RM7 per litre.
Malaysian Palm Oil Board (MPOB) director general Datuk Ahmad Parveez Ghulam Kadir said using locally-produced palm oil helps reduce dependence on imported diesel while supporting the income of smallholders and Felda settlers.
"From a cost perspective, the estimated factory price of below RM5 per litre highlights B100's strong potential to be a competitive alternative to conventional diesel, particularly when supported by Malaysia's domestic palm oil supply.
"While global crude palm oil (CPO) prices may fluctuate, this also presents opportunities for B100 to remain cost-effective under favourable market conditions," he told Business Times.
Felda (Federal Land Development Authority) is piloting B100 biodiesel, a 100 per cent palm oil-based fuel designed to reduce reliance on conventional diesel and bolster energy security.
With an estimated price below RM5.00 a litre, it aims to stabilise domestic fuel costs. Pilot projects involving vehicles reportedly have run for over 15 months.
Malaysia currently uses a phased palm oil biodiesel programme under its national biofuel policy.
The main framework is the B10 mandate, which requires most diesel in the transport sector to contain about 10 per cent palm-based biodiesel (palm methyl ester) nationwide.
This is the baseline standard in most parts of the country.
Malaysia has already implemented higher blends in selected areas.
B20 (20 per cent biodiesel) is used in places such as Labuan, Langkawi, and parts of Sarawak, while some government fleets and pilot projects are also testing higher usage levels.
Ahmad Parveez said for households and consumers, the immediate impact is expected to remain limited, as B100 biodiesel use is currently confined to controlled operations within Felda and has not been rolled out nationwide.
However, he noted that any broader expansion of biodiesel blending could lift demand for CPO, potentially exerting upward pressure on prices over time.
"Nevertheless, implementation at this stage is being carried out in a measured manner, with the government closely monitoring supply-demand dynamics to ensure it does not adversely affect the cost of living, particularly food prices.
"Cooking oil is subsidised in Malaysia and managed through government policies, including subsidies and price controls, particularly for bottled and packet cooking oil.
"Therefore, any potential price pressures from increased biodiesel demand are not expected to affect consumers," he added.
ESG Malaysia executive director Dr Harald Sippel said the B100 initiative is a genuine boost for Malaysian energy security.
"The savings margin is significant, and these would eventually flow down to transport operators, fishermen, farmers and ultimately household goods prices.
"The government's fuel subsidy bill has also ballooned to approximately RM6 billion per month, so a domestically produced alternative directly reduces that fiscal burden," he said.
However, he said there is a concern of an increase in coooking oil prices with the introduction of B100.
Citing an example in Indonesia, Sippel said the country has shown that aggressive biodiesel mandates can tighten domestic cooking oil supply and push up prices.
"Felda's chairman has acknowledged that Malaysia may not have sufficient CPO supply to implement B100 at scale immediately, which is precisely why a clear government policy must come first.
"Malaysia must expand processing capacity and CPO supply before mandating large-scale fuel use or risk trading one household cost problem for another," he added.
Felda and its unit FGV Holdings Bhd have introduced B100 as a possible alternative to reduce fuel costs amid rising prices.
Felda chairman Datuk Sri Ahmad Shabery Cheek said B100 has the potential to be a more competitive and sustainable alternative energy source following uncertainties from the Middle East crisis.
Shabery said B100 is still at the policy stage and will first be implemented within the Felda ecosystem. NST
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Southern palm growers in Thailand demand export curbs be scrapped
Southern palm growers threaten a post-Songkran protest at the Commerce Ministry after export controls sent fresh fruit bunch prices sharply lower
Palm growers in southern Thailand are threatening to escalate their protests after a government move to control crude palm oil exports triggered a sharp fall in prices, prompting anger across the sector and fresh demands for urgent policy changes.
The latest dispute follows a decision announced on April 7, 2026, by the Central Committee on Prices of Goods and Services to impose controls on crude palm oil exports, citing energy security and living costs. But growers say the measure has backfired badly, sending palm prices into freefall and inflicting immediate damage on producers.
Athirat Damdee, president of the Krabi Palm Oil Growers Association, who is among the farmer leaders moving under the banner of the Southern Palm Oil Growers and Collection Yards Network, said the impact was severe and immediate.
He said the price of fresh fruit bunches at collection yards had plunged from 8.90 baht to just 7.00 baht per kilogramme in only four days. According to the network, that swing has translated into economic losses of as much as 120 million baht a day from farmers’ incomes, or nearly 500 million baht over the past few days, directly contradicting the Commerce Ministry’s explanation.
The network says the policy amounts to a “conspiracy theory” aimed at forcing raw material prices lower in order to keep bottled cooking oil below 50 baht a bottle, while pushing the cost of that policy failure entirely on to growers and collection yards.
To defuse the situation and prevent a wider escalation, the network has submitted four demands to the government.
First, it wants the export controls eased immediately to restore balance to the trading system and protect overseas customers, warning that more than 50 billion baht a year in trade value could be at risk.
Second, it is calling for B10 to be declared the standard diesel blend so that the energy sector can absorb surplus output of around 60,000 tonnes a day, which growers say would be a fairer pricing mechanism than direct intervention.
Third, it wants a restructuring of the pricing system based on a “quality-linked” model, ending daily state-directed pricing and adopting the model proposed by the National Farmers Council so that raw material prices move more fairly in line with downstream products.
Fourth, it is urging the government to develop biodiesel production based on domestic raw materials by supporting the use of locally produced ethanol and alcohol instead of imported high-cost chemicals. Nation Thailand
Tighter exports, biodiesel demand to support CPO price
KUALA LUMPUR: Crude palm oil (CPO) prices are expected to remain well supported amid tightening regional export supply, as Thailand and Indonesia prioritise domestic biodiesel programmes, alongside weather risks linked to a developing El Niño.
Public Investment Bank Bhd (PublicInvest) said Malaysia's palm oil inventories are likely to edge towards the psychological two million tonne level over the next two months.
Inventories recently recorded their sharpest decline since March 2023, as major consuming countries stepped up stockpiling amid heightened geopolitical tensions.
CPO prices also rallied in March, rising more than 19 per cent, supported by higher crude oil prices and rising freight costs following the escalation of Middle East conflicts.
These factors have boosted the appeal of biodiesel as a more secure alternative fuel, lifting demand for palm-based biofuels.
PublicInvest maintained its "Overweight" call on the plantation sector and reiterated its full-year CPO price forecast of RM4,400 per tonne.
On regional developments, Thailand is tightening palm oil exports to safeguard domestic supply.
The world's third-largest palm oil producer is projected to produce about 21.8 million tonnes of fresh fruit bunches, equivalent to 3.9 million tonnes of CPO, accounting for around 4.6 per cent of global output.
PublicInvest said the export curbs are aimed at building inventories for biodiesel production and stabilising domestic cooking oil prices amid intensifying geopolitical tensions.
The move is expected to further tighten regional export availability, especially as Indonesia continues to prioritise palm-based biodiesel for domestic consumption. NST
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B100 set to disrupt diesel costs says FELDA
KUALA LUMPUR: Felda's plan to roll out 100 per cent palm oil-based biodiesel (B100) could mark a significant shift in Malaysia's fuel landscape, offering a potentially cheaper alternative to conventional diesel amid persistent energy cost pressures.
Industry executives said the proposed B100 fuel, with an estimated factory price as low as RM.45 per litre, could deliver meaningful cost savings compared with current diesel prices of nearly RM7 per litre.
Malaysian Palm Oil Board (MPOB) director general Datuk Ahmad Parveez Ghulam Kadir said using locally-produced palm oil helps reduce dependence on imported diesel while supporting the income of smallholders and Felda settlers.
"From a cost perspective, the estimated factory price of below RM5 per litre highlights B100's strong potential to be a competitive alternative to conventional diesel, particularly when supported by Malaysia's domestic palm oil supply.
"While global crude palm oil (CPO) prices may fluctuate, this also presents opportunities for B100 to remain cost-effective under favourable market conditions," he told Business Times.
Felda (Federal Land Development Authority) is piloting B100 biodiesel, a 100 per cent palm oil-based fuel designed to reduce reliance on conventional diesel and bolster energy security.
With an estimated price below RM5.00 a litre, it aims to stabilise domestic fuel costs. Pilot projects involving vehicles reportedly have run for over 15 months.
Malaysia currently uses a phased palm oil biodiesel programme under its national biofuel policy.
The main framework is the B10 mandate, which requires most diesel in the transport sector to contain about 10 per cent palm-based biodiesel (palm methyl ester) nationwide.
This is the baseline standard in most parts of the country.
Malaysia has already implemented higher blends in selected areas.
B20 (20 per cent biodiesel) is used in places such as Labuan, Langkawi, and parts of Sarawak, while some government fleets and pilot projects are also testing higher usage levels.
Ahmad Parveez said for households and consumers, the immediate impact is expected to remain limited, as B100 biodiesel use is currently confined to controlled operations within Felda and has not been rolled out nationwide.
However, he noted that any broader expansion of biodiesel blending could lift demand for CPO, potentially exerting upward pressure on prices over time.
"Nevertheless, implementation at this stage is being carried out in a measured manner, with the government closely monitoring supply-demand dynamics to ensure it does not adversely affect the cost of living, particularly food prices.
"Cooking oil is subsidised in Malaysia and managed through government policies, including subsidies and price controls, particularly for bottled and packet cooking oil.
"Therefore, any potential price pressures from increased biodiesel demand are not expected to affect consumers," he added.
ESG Malaysia executive director Dr Harald Sippel said the B100 initiative is a genuine boost for Malaysian energy security.
"The savings margin is significant, and these would eventually flow down to transport operators, fishermen, farmers and ultimately household goods prices.
"The government's fuel subsidy bill has also ballooned to approximately RM6 billion per month, so a domestically produced alternative directly reduces that fiscal burden," he said.
However, he said there is a concern of an increase in coooking oil prices with the introduction of B100.
Citing an example in Indonesia, Sippel said the country has shown that aggressive biodiesel mandates can tighten domestic cooking oil supply and push up prices.
"Felda's chairman has acknowledged that Malaysia may not have sufficient CPO supply to implement B100 at scale immediately, which is precisely why a clear government policy must come first.
"Malaysia must expand processing capacity and CPO supply before mandating large-scale fuel use or risk trading one household cost problem for another," he added.
Felda and its unit FGV Holdings Bhd have introduced B100 as a possible alternative to reduce fuel costs amid rising prices.
Felda chairman Datuk Sri Ahmad Shabery Cheek said B100 has the potential to be a more competitive and sustainable alternative energy source following uncertainties from the Middle East crisis.
Shabery said B100 is still at the policy stage and will first be implemented within the Felda ecosystem. NST
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Southern palm growers in Thailand demand export curbs be scrapped
Southern palm growers threaten a post-Songkran protest at the Commerce Ministry after export controls sent fresh fruit bunch prices sharply lower
Palm growers in southern Thailand are threatening to escalate their protests after a government move to control crude palm oil exports triggered a sharp fall in prices, prompting anger across the sector and fresh demands for urgent policy changes.
The latest dispute follows a decision announced on April 7, 2026, by the Central Committee on Prices of Goods and Services to impose controls on crude palm oil exports, citing energy security and living costs. But growers say the measure has backfired badly, sending palm prices into freefall and inflicting immediate damage on producers.
Athirat Damdee, president of the Krabi Palm Oil Growers Association, who is among the farmer leaders moving under the banner of the Southern Palm Oil Growers and Collection Yards Network, said the impact was severe and immediate.
He said the price of fresh fruit bunches at collection yards had plunged from 8.90 baht to just 7.00 baht per kilogramme in only four days. According to the network, that swing has translated into economic losses of as much as 120 million baht a day from farmers’ incomes, or nearly 500 million baht over the past few days, directly contradicting the Commerce Ministry’s explanation.
The network says the policy amounts to a “conspiracy theory” aimed at forcing raw material prices lower in order to keep bottled cooking oil below 50 baht a bottle, while pushing the cost of that policy failure entirely on to growers and collection yards.
To defuse the situation and prevent a wider escalation, the network has submitted four demands to the government.
First, it wants the export controls eased immediately to restore balance to the trading system and protect overseas customers, warning that more than 50 billion baht a year in trade value could be at risk.
Second, it is calling for B10 to be declared the standard diesel blend so that the energy sector can absorb surplus output of around 60,000 tonnes a day, which growers say would be a fairer pricing mechanism than direct intervention.
Third, it wants a restructuring of the pricing system based on a “quality-linked” model, ending daily state-directed pricing and adopting the model proposed by the National Farmers Council so that raw material prices move more fairly in line with downstream products.
Fourth, it is urging the government to develop biodiesel production based on domestic raw materials by supporting the use of locally produced ethanol and alcohol instead of imported high-cost chemicals. Nation Thailand
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April 12, 2026
Fueling Sovereignty: Indonesia's Bet on Palm-Based Energy
IF THE WORLD is a stage, then oil is its most expensive actor—demanding payment even before appearing. Every time conflict erupts in the Middle East, prices surge almost instantly, sending ripples across economies far removed from the battlefield.
Indonesia, however, seems to be taking a different path. Rather than reacting with panic, it is quietly preparing an alternative. The government's decision to mandate B50 biodiesel—blending 50 percent palm oil into diesel fuel—signals more than a technical adjustment. It reflects a strategic shift toward energy self-reliance.
Under this policy, a significant portion of Indonesia's diesel consumption will be sourced domestically from palm oil. In practical terms, every truck on the highway, every ship at sea, and every piece of heavy machinery will carry a fraction of Indonesia's own agricultural output as fuel.
On paper, the numbers are compelling. The implementation of B50 is projected to reduce fuel subsidy burdens by tens of trillions of rupiah within a year. Fossil fuel consumption could drop by millions of kiloliters annually, while foreign exchange savings and emissions reductions add further strategic value.
This is not merely cost-saving—it is structural transformation.
Yet beyond the data lies a more subtle reality: public skepticism.
Many Indonesians remain unconvinced that energy prices will remain stable. Rumors of rising fuel costs persist, fueled by long-standing dependence on imports and recent disruptions in global supply chains, including tensions around key maritime routes.
This skepticism is not irrational. For decades, Indonesia's energy security has been tied to external variables—global prices, geopolitical stability, and supply chain vulnerabilities.
What B50 introduces, perhaps for the first time, is a new variable in that equation: domestic substitution.
Admittedly, B50 does not directly address gasoline prices such as Pertamax. Its focus remains on diesel. But diesel is the backbone of logistics. When its cost is stabilized or reduced, the ripple effect extends across distribution networks, potentially containing broader price pressures.
In this sense, B50 acts less as a direct solution and more as a buffer. Energy prices may not fall dramatically—but preventing further increases can itself be a form of stability.
Importantly, this policy is not a sudden leap. It is the result of a long evolution—from B5 to B10, B20, B30, and B40—each stage refining both technology and implementation. B50 represents the next logical step in a gradual process of adaptation and scaling.
At the same time, infrastructure plays a critical role. Programs such as the Refinery Development Master Plan (RDMP), particularly in Balikpapan, aim to expand refining capacity, improve fuel quality, and reduce reliance on imports. Without such capacity, raw resources alone would be insufficient.
Energy sovereignty is not just about having supply—it is about the ability to process, distribute, and sustain it.
Still, challenges remain. Ensuring consistent palm oil supply, upgrading infrastructure, and aligning policy execution all require careful coordination. Even the most promising strategies can fail without operational discipline.
Yet perhaps the most important lesson lies in the context itself.
Energy independence rarely emerges from comfort. It is often forced under pressure. Global crises, while disruptive, can also serve as catalysts for long-delayed reforms.
Conclusion
B50 is more than a fuel blend—it is a statement of intent.
It reflects a shift from dependence to resilience, from vulnerability to strategic positioning.
And in a world increasingly defined by uncertainty, Indonesia's ability to fuel its own system may prove to be more than an economic advantage—it may become the foundation of its sovereignty.
Ma'had Tadabbur al-Qur'an, 2/4/2026 KBA News
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Pertamina and CRecTech sign MoU to explore pilot biogas-to-biomethanol facility in SEZ, Indonesia
Pertamina New & Renewable Energy (Pertamina NRE) continues to strengthen its commitment to expanding its renewable energy portfolio, as reflected in the signing of a Memorandum of Understanding (MoU) with CRecTech Pte. Ltd. (CRecTech). The agreement focuses on exploring the development of a pilot biogas-to-biomethanol facility in the Sei Mangkei Special Economic Zone (SEZ) in Sumatra, Indonesia.
CRecTech Pte. Ltd. is a Singapore-based clean technology company that converts carbon-based gases into high-value chemicals and fuels through its proprietary CRecREF™ catalytic technology, with a focus on supporting decarbonization and advancing green chemical solutions.
This MoU marks a strategic step toward optimizing the utilization of domestic renewable energy resources, particularly biogas, which holds significant potential in Indonesia. The initiative not only opens opportunities for the development of next-generation green fuels but also represents a key milestone in strengthening Indonesia’s role within the global clean energy supply chain. In addition, biomethanol development has the potential to support decarbonization in the maritime sector while creating added economic value from local resources.
The CEO of Pertamina NRE, John Anis, stated that this collaboration forms part of the company’s strategy to accelerate the development of clean energy based on local resources.
“This collaboration represents a concrete step by Pertamina NRE in accelerating the utilization of biogas into higher value-added products such as biomethanol. Indonesia holds significant potential, both in terms of market demand and feedstock availability—particularly from palm oil waste, which has yet to be fully optimized. Through our partnership with CRecTech and its innovative technology, we are confident in building a competitive and sustainable green fuel value chain. Moving forward, we hope this initiative will not stop at the pilot stage but can be scaled up to a larger commercial level, delivering tangible impact on the development of Indonesia’s green energy ecosystem,” said John.
Through this partnership, Pertamina NRE and CRecTech will conduct a joint study to evaluate the feasibility of developing a pilot biogas-to-biomethanol facility in the Sei Mangkei SEZ. Should the study yield positive results, the collaboration will proceed with the deployment of CRecTech’s CRecREF™ catalytic technology at the Sei Mangkei Biogas Power Plant. Hydro carbon processing
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Indonesia's Forest area task force recovers Rp371 trillion in state assets
Jakarta (ANTARA) - The Forest Area Enforcement Task Force (PKH Task Force) has successfully recovered state assets totaling Rp371.1 trillion (approximately US$21.7 billion) since its formation in February 2025.
"We have secured state assets amounting to Rp371,100,411,043,235," said Attorney General ST Burhanuddin, who serves as the First Deputy Chair of the PKH Task Force Steering Committee.
He made the remarks during an event at the Attorney General’s Office complex in Jakarta on Friday, marking the sixth phase of administrative fine handover, the recovery of state assets, and the reclamation of forest areas.
During his presentation, a screen display showed that the total amount was handed over in six separate collections. The breakdown is as follows:
Burhanuddin explained that the forest land was recovered from both the palm oil and mining sectors.
He detailed that since February 2025, the task force has successfully reclaimed 5,888,260.07 hectares of forest from the palm oil sector. Meanwhile, in the mining sector, the secured forest area stood at 10,297.22 hectares.
Related news: Indonesia must not lose to forest 'sucker' mafia: Attorney General
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Nigeria targets global relevance in oil palm as Inyang hails new strategy
The National President of the Palm Produce Association of Nigeria, Alphonsus Inyang, has said the Federal Government’s newly unveiled oil palm development strategy is designed to reposition Nigeria as a major global player in the industry.
He said this on the sideline of the Nigerian Oil Palm Development Strategy Validation Meeting, tagged “Unlocking Nigeria’s Oil Palm Potential: Pathways to Sustainability and Growth”, which was held in Abuja.
According to Inyang who also serves as vice chairman of the technical working group that developed the strategy, the plan introduces, for the first time, a comprehensive policy framework aimed at regulating, incentivising and driving growth in Nigeria’s oil palm sector.
“We have never had a policy before. This is the first time Nigeria will have a document validated and launched by the government and stakeholders to drive, regulate and stimulate the industry,” he said.
The strategy, he explained, is expected to significantly boost production, with projections indicating that Nigeria could achieve between nine and 10 million metric tonnes of palm oil annually by 2050.
He noted that Nigeria’s current production stands at about 1.4 to 1.5 million metric tonnes yearly, adding that scaling up output is achievable with proper implementation of the new framework. MSN
Fueling Sovereignty: Indonesia's Bet on Palm-Based Energy
IF THE WORLD is a stage, then oil is its most expensive actor—demanding payment even before appearing. Every time conflict erupts in the Middle East, prices surge almost instantly, sending ripples across economies far removed from the battlefield.
Indonesia, however, seems to be taking a different path. Rather than reacting with panic, it is quietly preparing an alternative. The government's decision to mandate B50 biodiesel—blending 50 percent palm oil into diesel fuel—signals more than a technical adjustment. It reflects a strategic shift toward energy self-reliance.
Under this policy, a significant portion of Indonesia's diesel consumption will be sourced domestically from palm oil. In practical terms, every truck on the highway, every ship at sea, and every piece of heavy machinery will carry a fraction of Indonesia's own agricultural output as fuel.
On paper, the numbers are compelling. The implementation of B50 is projected to reduce fuel subsidy burdens by tens of trillions of rupiah within a year. Fossil fuel consumption could drop by millions of kiloliters annually, while foreign exchange savings and emissions reductions add further strategic value.
This is not merely cost-saving—it is structural transformation.
Yet beyond the data lies a more subtle reality: public skepticism.
Many Indonesians remain unconvinced that energy prices will remain stable. Rumors of rising fuel costs persist, fueled by long-standing dependence on imports and recent disruptions in global supply chains, including tensions around key maritime routes.
This skepticism is not irrational. For decades, Indonesia's energy security has been tied to external variables—global prices, geopolitical stability, and supply chain vulnerabilities.
What B50 introduces, perhaps for the first time, is a new variable in that equation: domestic substitution.
Admittedly, B50 does not directly address gasoline prices such as Pertamax. Its focus remains on diesel. But diesel is the backbone of logistics. When its cost is stabilized or reduced, the ripple effect extends across distribution networks, potentially containing broader price pressures.
In this sense, B50 acts less as a direct solution and more as a buffer. Energy prices may not fall dramatically—but preventing further increases can itself be a form of stability.
Importantly, this policy is not a sudden leap. It is the result of a long evolution—from B5 to B10, B20, B30, and B40—each stage refining both technology and implementation. B50 represents the next logical step in a gradual process of adaptation and scaling.
At the same time, infrastructure plays a critical role. Programs such as the Refinery Development Master Plan (RDMP), particularly in Balikpapan, aim to expand refining capacity, improve fuel quality, and reduce reliance on imports. Without such capacity, raw resources alone would be insufficient.
Energy sovereignty is not just about having supply—it is about the ability to process, distribute, and sustain it.
Still, challenges remain. Ensuring consistent palm oil supply, upgrading infrastructure, and aligning policy execution all require careful coordination. Even the most promising strategies can fail without operational discipline.
Yet perhaps the most important lesson lies in the context itself.
Energy independence rarely emerges from comfort. It is often forced under pressure. Global crises, while disruptive, can also serve as catalysts for long-delayed reforms.
Conclusion
B50 is more than a fuel blend—it is a statement of intent.
It reflects a shift from dependence to resilience, from vulnerability to strategic positioning.
And in a world increasingly defined by uncertainty, Indonesia's ability to fuel its own system may prove to be more than an economic advantage—it may become the foundation of its sovereignty.
Ma'had Tadabbur al-Qur'an, 2/4/2026 KBA News
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Pertamina and CRecTech sign MoU to explore pilot biogas-to-biomethanol facility in SEZ, Indonesia
Pertamina New & Renewable Energy (Pertamina NRE) continues to strengthen its commitment to expanding its renewable energy portfolio, as reflected in the signing of a Memorandum of Understanding (MoU) with CRecTech Pte. Ltd. (CRecTech). The agreement focuses on exploring the development of a pilot biogas-to-biomethanol facility in the Sei Mangkei Special Economic Zone (SEZ) in Sumatra, Indonesia.
CRecTech Pte. Ltd. is a Singapore-based clean technology company that converts carbon-based gases into high-value chemicals and fuels through its proprietary CRecREF™ catalytic technology, with a focus on supporting decarbonization and advancing green chemical solutions.
This MoU marks a strategic step toward optimizing the utilization of domestic renewable energy resources, particularly biogas, which holds significant potential in Indonesia. The initiative not only opens opportunities for the development of next-generation green fuels but also represents a key milestone in strengthening Indonesia’s role within the global clean energy supply chain. In addition, biomethanol development has the potential to support decarbonization in the maritime sector while creating added economic value from local resources.
The CEO of Pertamina NRE, John Anis, stated that this collaboration forms part of the company’s strategy to accelerate the development of clean energy based on local resources.
“This collaboration represents a concrete step by Pertamina NRE in accelerating the utilization of biogas into higher value-added products such as biomethanol. Indonesia holds significant potential, both in terms of market demand and feedstock availability—particularly from palm oil waste, which has yet to be fully optimized. Through our partnership with CRecTech and its innovative technology, we are confident in building a competitive and sustainable green fuel value chain. Moving forward, we hope this initiative will not stop at the pilot stage but can be scaled up to a larger commercial level, delivering tangible impact on the development of Indonesia’s green energy ecosystem,” said John.
Through this partnership, Pertamina NRE and CRecTech will conduct a joint study to evaluate the feasibility of developing a pilot biogas-to-biomethanol facility in the Sei Mangkei SEZ. Should the study yield positive results, the collaboration will proceed with the deployment of CRecTech’s CRecREF™ catalytic technology at the Sei Mangkei Biogas Power Plant. Hydro carbon processing
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Indonesia's Forest area task force recovers Rp371 trillion in state assets
Jakarta (ANTARA) - The Forest Area Enforcement Task Force (PKH Task Force) has successfully recovered state assets totaling Rp371.1 trillion (approximately US$21.7 billion) since its formation in February 2025.
"We have secured state assets amounting to Rp371,100,411,043,235," said Attorney General ST Burhanuddin, who serves as the First Deputy Chair of the PKH Task Force Steering Committee.
He made the remarks during an event at the Attorney General’s Office complex in Jakarta on Friday, marking the sixth phase of administrative fine handover, the recovery of state assets, and the reclamation of forest areas.
During his presentation, a screen display showed that the total amount was handed over in six separate collections. The breakdown is as follows:
- First phase: Rp13,255,244,538,149, recovered on October 20, 2025, in connection with a corruption case involving crude palm oil (CPO) export facilities and derivatives.
- Second phase: Rp6,625,294,190,469, recovered on December 24, 2025, from forest area administrative fines and non-tax state revenue related to corruption cases.
- Third phase: Rp11,420,104,815,858, recovered on April 10, 2026, from forest area administrative fines and non-tax state revenue related to corruption cases.
- Fourth phase: Rp2,306,292,710,054, sourced from land and building tax and 2025 non-tax state revenue, as well as Rp453,928,316,611 from PT Agrinas Palma Nusantara’s tax payments for the period ending December 31, 2025.
- Fifth phase: Rp1,000,000,000,000, recovered from an escrow account containing proceeds from the management of evidence in the PT Duta Palma case.
- Sixth phase: Rp336,039,546,472,094, representing the estimated value of 5,888,233.57 hectares of reclaimed forest areas (valued at Rp57,106,648.83 per hectare).
Burhanuddin explained that the forest land was recovered from both the palm oil and mining sectors.
He detailed that since February 2025, the task force has successfully reclaimed 5,888,260.07 hectares of forest from the palm oil sector. Meanwhile, in the mining sector, the secured forest area stood at 10,297.22 hectares.
Related news: Indonesia must not lose to forest 'sucker' mafia: Attorney General
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Nigeria targets global relevance in oil palm as Inyang hails new strategy
The National President of the Palm Produce Association of Nigeria, Alphonsus Inyang, has said the Federal Government’s newly unveiled oil palm development strategy is designed to reposition Nigeria as a major global player in the industry.
He said this on the sideline of the Nigerian Oil Palm Development Strategy Validation Meeting, tagged “Unlocking Nigeria’s Oil Palm Potential: Pathways to Sustainability and Growth”, which was held in Abuja.
According to Inyang who also serves as vice chairman of the technical working group that developed the strategy, the plan introduces, for the first time, a comprehensive policy framework aimed at regulating, incentivising and driving growth in Nigeria’s oil palm sector.
“We have never had a policy before. This is the first time Nigeria will have a document validated and launched by the government and stakeholders to drive, regulate and stimulate the industry,” he said.
The strategy, he explained, is expected to significantly boost production, with projections indicating that Nigeria could achieve between nine and 10 million metric tonnes of palm oil annually by 2050.
He noted that Nigeria’s current production stands at about 1.4 to 1.5 million metric tonnes yearly, adding that scaling up output is achievable with proper implementation of the new framework. MSN
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April 11, 2026
Indonesia's Prabowo calls for criminal charges against firms resisting forest crackdown
Summary
JAKARTA, April 10 (Reuters) - Indonesian President Prabowo Subianto ordered prosecutors on Friday to file criminal charges against companies that refuse to cooperate with a task force he launched to crack down on illegal activities in the country's forests.
The task force, made up of military personnel, prosecutors and environmental regulators, has since early 2025 been seizing areas controlled by companies and individuals, ordering them to pay fines for what they describe as illegal business operations in designated forest areas.
A total of 5.88 million hectares (14.5 million acres) of oil palm plantations and 10,257 hectares of mining concessions have been taken over so far, according to the deputy head of the task force, Attorney General Sanitiar Burhanuddin - nearly twice the size of Belgium.
Speaking at a ceremony marking the task force's efforts, Burhanuddin handed 7.23 trillion rupiah ($423.18 million) of fines paid by implicated companies over to the finance ministry.
Prabowo praised the task force's work and warned that anyone who refused to cooperate would be seen as going against the president himself.
"Therefore I order the Attorney General to enforce the law — those who do not want to cooperate, prosecute them. We will not hesitate and we will not be intimidated," Prabowo said.
Delivering a speech in front of a wall of stacked banknotes showcasing the fines paid, Prabowo said the assets confiscated so far have a total value of nearly $22 billion.
In December, Burhanuddin warned that authorities could collect another $8.5 billion in fines from firms implicated in the seizures. However, the task force said last month that 34 companies have filed objections, with some arguing the area of land involved has been overestimated.
At the ceremony, the task force also handed over some 30,500 hectares of oil palm plantations to the state firm Agrinas Palma Nusantara, while another 255,000 hectares of areas were transferred to the forestry ministry.
Agrinas now manages around 1.7 million hectares of plantations taken over by the task force, making it the world's biggest palm oil company by land bank size. Reuters
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Indonesian govt regains 5 million hectares of forest land
Jakarta (ANTARA) - The Indonesian government has regained control of more than 5 million hectares of forest land from palm oil plantation and mining sectors, officials said.
The symbolic handover took place in Jakarta on Friday, led by Attorney General ST Burhanuddin, who serves as deputy chair of the Forest Area Enforcement Task Force (Satgas PKH) steering committee.
The assets were handed over to Forestry Minister Raja Juli Antoni and Finance Minister Purbaya Yudhi Sadewa, in the presence of President Prabowo Subianto.
Burhanuddin said the task force has reclaimed 5,888,260.07 hectares of forest land from the palm oil sector since February 2025, and 10,297.22 hectares from mining activities.
Of the total area, 254,780.12 hectares of conservation forest have been handed over to the Finance Ministry.
The land includes 149,198.09 hectares of production forest designated for conversion in Ketapang, West Kalimantan.
It also covers 510.03 hectares of the Lae Kombih Grand Forest Park in Subulussalam, Aceh, and 105,072 hectares in the Mount Halimun–Salak forest area in Bogor.
Another 30,543 hectares will be transferred from the Finance Ministry to sovereign wealth fund Danantara and then to state-owned firm PT Agrinas Palma Nusantara.
Burhanuddin stressed the importance of strong law enforcement in tackling forest-related crimes.
He warned that weak enforcement could lead to losses in state revenue, assets, and authority.
"Conversely, strong, smart, and targeted law enforcement will improve governance, recover state losses, and create a healthier business climate that benefits the national economy," he said.
Related news: Indonesia launches major reforestation in Tesso Nilo National Park
Related news: Indonesia plants 21 million mangroves under coastal resilience program
Antara News
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Indonesia will stop fuel imports within 3 years
JAKARTA - President Prabowo Subianto is targeting Indonesia to stop fuel imports within the next two to three years through the acceleration of energy self-sufficiency. The government is relying on a 100 gigawatt electrification program, including the shutdown of diesel power plants owned by PT PLN (Persero), which could save up to 200,000 barrels of diesel consumption per day.
This step is expected to reduce fuel imports by up to 20% of current total demand. In addition, the government is also accelerating the development of electric vehicles, renewable energy, as well as alternative fuels based on palm oil and used cooking oil. (SA/KR) IDN Financials www.idnfinancials.com/videos/watch/2541/indonesia-fuel-imports
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Malaysia's March palm oil stocks hit seven-month low as exports surge
KUALA LUMPUR: Malaysia's palm oil inventories slid in March, down for a third straight month and hitting a seven-month low on a surge in exports that more than offset a modest increase in output.
Falling inventories in the world's second-largest producer of the tropical oil could support benchmark Malaysian futures , which have climbed in recent weeks after the Iran conflict drove energy prices higher.
Malaysia's palm oil stocks tumbled 16.1% to 2.27 million metric tons in March from February, marking their lowest level since August, data from the Malaysian Palm Oil Board (MPOB) showed on Friday.
Inventories were slightly higher than expectations. Crude palm oil production increased 7.2% to 1.38 million tons, snapping a four-month run of declines. KLSE Screener
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RM3.5 MILLION INCENTIVE TO SUPPORT MSPO CERTIFICATION FOR OIL PALM FFB TRADERS – NORAINI
KUALA LUMPUR, April 11 (Bernama) -- The Ministry of Plantation and Commodities has introduced an incentive amounting to RM3.5 million in an effort to support oil palm fresh fruit bunches (FFB) traders in obtaining the Malaysian Sustainable Palm Oil (MSPO) certification.
The Minister of Plantation and Commodities, Datuk Seri Dr Noraini Ahmad, said this is a proactive step by the government to help oil palm FFB traders meet current compliance requirements, while also strengthening the resilience of the national palm oil supply chain.
More than 3,000 eligible oil palm FFB traders nationwide are expected to benefit, subject to the stipulated terms and conditions, she said in a statement today.
She said applications for this incentive can be submitted to the MSPO Council starting April 15, 2026, through the e-MSPO system.
"The implementation of this initiative is in line with efforts to strengthen the comprehensive implementation of MSPO 2.0, while supporting the national agenda to ensure the Malaysian palm oil industry continues to develop sustainably, responsibly and resiliently," she said.
The initiative reflects the government's ongoing efforts to safeguard the welfare of stakeholders and strengthen confidence in Malaysia’s palm oil sector in both domestic and international markets. Bernama
Indonesia's Prabowo calls for criminal charges against firms resisting forest crackdown
Summary
- Task force has seized assets valued at nearly $22 billion, Prabowo says
- Nearly 6 million hectares of plantations and mines have been seized by task force
- $423 million of fines were handed over to the finance ministry
- More plantations given to state oil palm grower Agrinas Palma
JAKARTA, April 10 (Reuters) - Indonesian President Prabowo Subianto ordered prosecutors on Friday to file criminal charges against companies that refuse to cooperate with a task force he launched to crack down on illegal activities in the country's forests.
The task force, made up of military personnel, prosecutors and environmental regulators, has since early 2025 been seizing areas controlled by companies and individuals, ordering them to pay fines for what they describe as illegal business operations in designated forest areas.
A total of 5.88 million hectares (14.5 million acres) of oil palm plantations and 10,257 hectares of mining concessions have been taken over so far, according to the deputy head of the task force, Attorney General Sanitiar Burhanuddin - nearly twice the size of Belgium.
Speaking at a ceremony marking the task force's efforts, Burhanuddin handed 7.23 trillion rupiah ($423.18 million) of fines paid by implicated companies over to the finance ministry.
Prabowo praised the task force's work and warned that anyone who refused to cooperate would be seen as going against the president himself.
"Therefore I order the Attorney General to enforce the law — those who do not want to cooperate, prosecute them. We will not hesitate and we will not be intimidated," Prabowo said.
Delivering a speech in front of a wall of stacked banknotes showcasing the fines paid, Prabowo said the assets confiscated so far have a total value of nearly $22 billion.
In December, Burhanuddin warned that authorities could collect another $8.5 billion in fines from firms implicated in the seizures. However, the task force said last month that 34 companies have filed objections, with some arguing the area of land involved has been overestimated.
At the ceremony, the task force also handed over some 30,500 hectares of oil palm plantations to the state firm Agrinas Palma Nusantara, while another 255,000 hectares of areas were transferred to the forestry ministry.
Agrinas now manages around 1.7 million hectares of plantations taken over by the task force, making it the world's biggest palm oil company by land bank size. Reuters
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Indonesian govt regains 5 million hectares of forest land
Jakarta (ANTARA) - The Indonesian government has regained control of more than 5 million hectares of forest land from palm oil plantation and mining sectors, officials said.
The symbolic handover took place in Jakarta on Friday, led by Attorney General ST Burhanuddin, who serves as deputy chair of the Forest Area Enforcement Task Force (Satgas PKH) steering committee.
The assets were handed over to Forestry Minister Raja Juli Antoni and Finance Minister Purbaya Yudhi Sadewa, in the presence of President Prabowo Subianto.
Burhanuddin said the task force has reclaimed 5,888,260.07 hectares of forest land from the palm oil sector since February 2025, and 10,297.22 hectares from mining activities.
Of the total area, 254,780.12 hectares of conservation forest have been handed over to the Finance Ministry.
The land includes 149,198.09 hectares of production forest designated for conversion in Ketapang, West Kalimantan.
It also covers 510.03 hectares of the Lae Kombih Grand Forest Park in Subulussalam, Aceh, and 105,072 hectares in the Mount Halimun–Salak forest area in Bogor.
Another 30,543 hectares will be transferred from the Finance Ministry to sovereign wealth fund Danantara and then to state-owned firm PT Agrinas Palma Nusantara.
Burhanuddin stressed the importance of strong law enforcement in tackling forest-related crimes.
He warned that weak enforcement could lead to losses in state revenue, assets, and authority.
"Conversely, strong, smart, and targeted law enforcement will improve governance, recover state losses, and create a healthier business climate that benefits the national economy," he said.
Related news: Indonesia launches major reforestation in Tesso Nilo National Park
Related news: Indonesia plants 21 million mangroves under coastal resilience program
Antara News
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Indonesia will stop fuel imports within 3 years
JAKARTA - President Prabowo Subianto is targeting Indonesia to stop fuel imports within the next two to three years through the acceleration of energy self-sufficiency. The government is relying on a 100 gigawatt electrification program, including the shutdown of diesel power plants owned by PT PLN (Persero), which could save up to 200,000 barrels of diesel consumption per day.
This step is expected to reduce fuel imports by up to 20% of current total demand. In addition, the government is also accelerating the development of electric vehicles, renewable energy, as well as alternative fuels based on palm oil and used cooking oil. (SA/KR) IDN Financials www.idnfinancials.com/videos/watch/2541/indonesia-fuel-imports
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Malaysia's March palm oil stocks hit seven-month low as exports surge
KUALA LUMPUR: Malaysia's palm oil inventories slid in March, down for a third straight month and hitting a seven-month low on a surge in exports that more than offset a modest increase in output.
Falling inventories in the world's second-largest producer of the tropical oil could support benchmark Malaysian futures , which have climbed in recent weeks after the Iran conflict drove energy prices higher.
Malaysia's palm oil stocks tumbled 16.1% to 2.27 million metric tons in March from February, marking their lowest level since August, data from the Malaysian Palm Oil Board (MPOB) showed on Friday.
Inventories were slightly higher than expectations. Crude palm oil production increased 7.2% to 1.38 million tons, snapping a four-month run of declines. KLSE Screener
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RM3.5 MILLION INCENTIVE TO SUPPORT MSPO CERTIFICATION FOR OIL PALM FFB TRADERS – NORAINI
KUALA LUMPUR, April 11 (Bernama) -- The Ministry of Plantation and Commodities has introduced an incentive amounting to RM3.5 million in an effort to support oil palm fresh fruit bunches (FFB) traders in obtaining the Malaysian Sustainable Palm Oil (MSPO) certification.
The Minister of Plantation and Commodities, Datuk Seri Dr Noraini Ahmad, said this is a proactive step by the government to help oil palm FFB traders meet current compliance requirements, while also strengthening the resilience of the national palm oil supply chain.
More than 3,000 eligible oil palm FFB traders nationwide are expected to benefit, subject to the stipulated terms and conditions, she said in a statement today.
She said applications for this incentive can be submitted to the MSPO Council starting April 15, 2026, through the e-MSPO system.
"The implementation of this initiative is in line with efforts to strengthen the comprehensive implementation of MSPO 2.0, while supporting the national agenda to ensure the Malaysian palm oil industry continues to develop sustainably, responsibly and resiliently," she said.
The initiative reflects the government's ongoing efforts to safeguard the welfare of stakeholders and strengthen confidence in Malaysia’s palm oil sector in both domestic and international markets. Bernama
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April 10, 2026
Cameroon backs palm oil expansion with new processing plant
Cameroon has launched construction of a new palm oil processing plant as part of its strategy to reduce imports and strengthen domestic production.
On April 8, 2026, Agriculture Minister Gabriel Mbairobe laid the foundation stone for the Opalm facility in Lengue, near Mbanga in the Moungo department. The plant represents an investment of CFA9 billion and is expected to produce 25,000 tons of palm oil annually.
Local officials say the project marks a first for the area. “We thank Opalm for choosing Lengue to host the first industrial facility in the Mbanga district,” said Mayor Henriette Endalé Edjake Mbonda, highlighting its role in local economic development.
Beyond its industrial scope, the project is positioned as a catalyst for the palm oil sector in Moungo. According to Opalm, the plant will create 340 jobs and generate around CFA5 billion annually for local growers through purchases of palm nuts.
The groundbreaking ceremony also marked the rollout of an agreement signed on December 22, 2025, between the government and Opalm. The framework is intended to strengthen support and oversight for palm oil producers.
The initiative is expected to expand to other production areas. In the Nyong-Ekellé department, Opalm plans to implement similar measures while also launching the expansion of the Socapalm plant in Eseka, which it recently acquired. That project, valued at about CFA8 billion, will increase capacity from 7,000 tons to 25,000 tons.
Opalm’s broader investment plan, backed by the government, includes building five palm oil plants across the country over the next five years. With total planned spending of around CFA45 billion, the company aims to raise domestic output by more than 100,000 tons and cut the current supply gap by about half.
The government sees the initiative as part of its import-substitution strategy, aimed at reducing reliance on foreign supply and improving the trade balance. Cameroon’s trade deficit reached CFA2,145.2 billion in 2025, up 23% year-on-year, according to the National Institute of Statistics. Business in Cameroon
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Palm Oil Industry Supporting 8 Million Workers Faces EU Anti-Deforestation Regulation, UGM Expert Says
Palm oil is one of Indonesia’s largest export commodities. In fact, Indonesia is the world’s leading producer of palm oil, contributing approximately 59% of the global supply. This makes the palm oil sector a crucial pillar of the national economy, particularly through its contributions to export trade, job creation, and the livelihoods of millions. The industry supports the livelihoods of around 8 million people, with independent smallholders playing a significant role by managing more than 40% of the country’s total palm oil plantation area.
However, this dominant position is now facing increasingly complex global regulatory pressures. With the European Union Deforestation Regulation (EUDR) postponed twice and global markets tightening sustainability standards, Indonesia is racing against time to equip its negotiators and diplomats to meet these challenges.
The Center for World Trade Studies (PSPD) UGM has been mandated by the Coordinating Ministry for Economic Affairs, with support from the UNDP Forest, Agriculture and Sustainable Trade (FAST) program, to organize a Capacity Building Program on Foreign Negotiation and Diplomacy in Sustainable Palm Oil Practices.
Maharani Hapsari, S.IP., M.A., Team Leader and Executive Secretary of PSPD UGM, explained that PSPD UGM was tasked with developing and delivering training modules on negotiation and diplomacy that are relevant and responsive to practitioners’ needs while remaining aligned with sustainability standards in the palm oil industry.
“We designed the training modules to address the various issues faced by negotiators so they can objectively communicate the transformation of Indonesia’s palm oil industry from upstream to downstream,” Maharani said during the Kick-off and Inception Workshop: “Capacity Building on Foreign Negotiation and Diplomacy in Sustainable Practices of Palm Oil,” held Tuesday (7/4) at Hotel Harper Malioboro, Yogyakarta. UGM
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Indonesia Deploys Thousands of African Bugs to Boost Palm Output
Thousands of tiny bugs from Africa have been released at an Indonesian palm oil plantation in North Sumatra as the world’s biggest grower seeks to revive output growth after years of stalling production.
(Bloomberg) — Thousands of tiny bugs from Africa have been released at an Indonesian palm oil plantation in North Sumatra as the world’s biggest grower seeks to revive output growth after years of stalling production.
The release of about 7,000 African weevils at a plantation owned by state-run PT Perkebunan Nusantara IV on Thursday marks the first step of a broad plan to introduce around 1 million of the bugs across Indonesia. The hope is they will help to improve pollination and fruit development, lifting production.
Indonesia’s output growth has stalled in recent years, primarily due to old trees that some growers are reluctant to replant due to the extended time it takes for them to fruit. While the insect release doesn’t address the underlying issue of aging plants, a similar weevil program on a smaller scale in the 1980s led to a significant improvement in production rates across the country.
Around 6,000 weevils were collected from Tanzania early last year and sent to a scientific facility in North Sumatra for tests, including on how they interact with local insects, and to reproduce in vast numbers. Palm oil is native to Africa, making the Tanzanian bugs well suited for the role.
The first batch of weevils released at the 8,000-hectare plantation near the scientific facility are expected to have an impact on production within about 10 to 12 months, said Agus Eko Prasetyo, a researcher from the Indonesian Oil Palm Research Institute, who is leading the program.
More than two dozen other companies and smallholder groups that are involved in the initiative will be allocated weevils for their plantations in stages, with the next release expected next week, Prasetyo added. Some bigger producers that have their own laboratories are expected to reproduce the bugs, he said. Financial Post
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Ecuador doubles tariff on Colombia to 100%
Bogotá, Colombia – Ecuador will impose a 100% tariff on all Colombian imports beginning on May 1, according to a statement by the Ministry of Production, Foreign Trade, and Investment today.
The move ramps up tensions between the two South American neighbors, which have imposed reciprocal levies of 50% in a trade war that began in January when Ecuador announced it would charge Colombia a “security fee”.
“This measure is based on national security criteria and seeks to reinforce shared responsibility in a task that must be undertaken jointly to address the presence of drug trafficking at the border,” read a statement by the trade ministry on Thursday announcing the tariff hike.
Bogotá and Quito have clashed over border security issues in recent months, with Ecuadorean President Daniel Noboa accusing his counterpart of failing to deter criminal groups operating in the region.
Colombian President Gustavo Petro has defended his administration’s security record and imposed reciprocal levies against Ecuador.
The two countries were due to hold talks next week to resolve the trade war but these were cancelled yesterday amid a dispute over former Ecuadorean Vice President Jorge Glas. Quito recalled its Ambassador from Bogotá after Petro suggested Glas was a political prisoner and had not been treated humanely in jail.
The tariffs threaten economic shocks on both sides of the border; Ecuador imports medicine, sugar, vehicles and coffee from Colombia and exports wood panels, canned fish, frozen seafood, palm oil, and rice. Latin America Reports
Cameroon backs palm oil expansion with new processing plant
Cameroon has launched construction of a new palm oil processing plant as part of its strategy to reduce imports and strengthen domestic production.
On April 8, 2026, Agriculture Minister Gabriel Mbairobe laid the foundation stone for the Opalm facility in Lengue, near Mbanga in the Moungo department. The plant represents an investment of CFA9 billion and is expected to produce 25,000 tons of palm oil annually.
Local officials say the project marks a first for the area. “We thank Opalm for choosing Lengue to host the first industrial facility in the Mbanga district,” said Mayor Henriette Endalé Edjake Mbonda, highlighting its role in local economic development.
Beyond its industrial scope, the project is positioned as a catalyst for the palm oil sector in Moungo. According to Opalm, the plant will create 340 jobs and generate around CFA5 billion annually for local growers through purchases of palm nuts.
The groundbreaking ceremony also marked the rollout of an agreement signed on December 22, 2025, between the government and Opalm. The framework is intended to strengthen support and oversight for palm oil producers.
The initiative is expected to expand to other production areas. In the Nyong-Ekellé department, Opalm plans to implement similar measures while also launching the expansion of the Socapalm plant in Eseka, which it recently acquired. That project, valued at about CFA8 billion, will increase capacity from 7,000 tons to 25,000 tons.
Opalm’s broader investment plan, backed by the government, includes building five palm oil plants across the country over the next five years. With total planned spending of around CFA45 billion, the company aims to raise domestic output by more than 100,000 tons and cut the current supply gap by about half.
The government sees the initiative as part of its import-substitution strategy, aimed at reducing reliance on foreign supply and improving the trade balance. Cameroon’s trade deficit reached CFA2,145.2 billion in 2025, up 23% year-on-year, according to the National Institute of Statistics. Business in Cameroon
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Palm Oil Industry Supporting 8 Million Workers Faces EU Anti-Deforestation Regulation, UGM Expert Says
Palm oil is one of Indonesia’s largest export commodities. In fact, Indonesia is the world’s leading producer of palm oil, contributing approximately 59% of the global supply. This makes the palm oil sector a crucial pillar of the national economy, particularly through its contributions to export trade, job creation, and the livelihoods of millions. The industry supports the livelihoods of around 8 million people, with independent smallholders playing a significant role by managing more than 40% of the country’s total palm oil plantation area.
However, this dominant position is now facing increasingly complex global regulatory pressures. With the European Union Deforestation Regulation (EUDR) postponed twice and global markets tightening sustainability standards, Indonesia is racing against time to equip its negotiators and diplomats to meet these challenges.
The Center for World Trade Studies (PSPD) UGM has been mandated by the Coordinating Ministry for Economic Affairs, with support from the UNDP Forest, Agriculture and Sustainable Trade (FAST) program, to organize a Capacity Building Program on Foreign Negotiation and Diplomacy in Sustainable Palm Oil Practices.
Maharani Hapsari, S.IP., M.A., Team Leader and Executive Secretary of PSPD UGM, explained that PSPD UGM was tasked with developing and delivering training modules on negotiation and diplomacy that are relevant and responsive to practitioners’ needs while remaining aligned with sustainability standards in the palm oil industry.
“We designed the training modules to address the various issues faced by negotiators so they can objectively communicate the transformation of Indonesia’s palm oil industry from upstream to downstream,” Maharani said during the Kick-off and Inception Workshop: “Capacity Building on Foreign Negotiation and Diplomacy in Sustainable Practices of Palm Oil,” held Tuesday (7/4) at Hotel Harper Malioboro, Yogyakarta. UGM
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Indonesia Deploys Thousands of African Bugs to Boost Palm Output
Thousands of tiny bugs from Africa have been released at an Indonesian palm oil plantation in North Sumatra as the world’s biggest grower seeks to revive output growth after years of stalling production.
(Bloomberg) — Thousands of tiny bugs from Africa have been released at an Indonesian palm oil plantation in North Sumatra as the world’s biggest grower seeks to revive output growth after years of stalling production.
The release of about 7,000 African weevils at a plantation owned by state-run PT Perkebunan Nusantara IV on Thursday marks the first step of a broad plan to introduce around 1 million of the bugs across Indonesia. The hope is they will help to improve pollination and fruit development, lifting production.
Indonesia’s output growth has stalled in recent years, primarily due to old trees that some growers are reluctant to replant due to the extended time it takes for them to fruit. While the insect release doesn’t address the underlying issue of aging plants, a similar weevil program on a smaller scale in the 1980s led to a significant improvement in production rates across the country.
Around 6,000 weevils were collected from Tanzania early last year and sent to a scientific facility in North Sumatra for tests, including on how they interact with local insects, and to reproduce in vast numbers. Palm oil is native to Africa, making the Tanzanian bugs well suited for the role.
The first batch of weevils released at the 8,000-hectare plantation near the scientific facility are expected to have an impact on production within about 10 to 12 months, said Agus Eko Prasetyo, a researcher from the Indonesian Oil Palm Research Institute, who is leading the program.
More than two dozen other companies and smallholder groups that are involved in the initiative will be allocated weevils for their plantations in stages, with the next release expected next week, Prasetyo added. Some bigger producers that have their own laboratories are expected to reproduce the bugs, he said. Financial Post
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Ecuador doubles tariff on Colombia to 100%
Bogotá, Colombia – Ecuador will impose a 100% tariff on all Colombian imports beginning on May 1, according to a statement by the Ministry of Production, Foreign Trade, and Investment today.
The move ramps up tensions between the two South American neighbors, which have imposed reciprocal levies of 50% in a trade war that began in January when Ecuador announced it would charge Colombia a “security fee”.
“This measure is based on national security criteria and seeks to reinforce shared responsibility in a task that must be undertaken jointly to address the presence of drug trafficking at the border,” read a statement by the trade ministry on Thursday announcing the tariff hike.
Bogotá and Quito have clashed over border security issues in recent months, with Ecuadorean President Daniel Noboa accusing his counterpart of failing to deter criminal groups operating in the region.
Colombian President Gustavo Petro has defended his administration’s security record and imposed reciprocal levies against Ecuador.
The two countries were due to hold talks next week to resolve the trade war but these were cancelled yesterday amid a dispute over former Ecuadorean Vice President Jorge Glas. Quito recalled its Ambassador from Bogotá after Petro suggested Glas was a political prisoner and had not been treated humanely in jail.
The tariffs threaten economic shocks on both sides of the border; Ecuador imports medicine, sugar, vehicles and coffee from Colombia and exports wood panels, canned fish, frozen seafood, palm oil, and rice. Latin America Reports
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April 09, 2026
Malaysia's plantation sector poised for stronger earnings on tightening supply, biodiesel push — analysts
KUALA LUMPUR (April 8): Malaysia’s plantation sector is poised for a stronger earnings cycle as tighter regional supply controls and rising biodiesel demand continue to underpin crude palm oil (CPO) prices, according to recent sector research reports.
Thailand’s move to tighten CPO export controls from April 7 is expected to lend near-term support to CPO prices by limiting supply availability in the global market.
Under the new measure, exporters must obtain prior written approval for each shipment to safeguard domestic supply amid rising local consumption and biodiesel demand.
While Thailand accounts for only a relatively small share of global palm oil exports, analysts said the policy reinforces a broader regional trend of prioritising domestic energy security and food supply, particularly as higher crude oil prices improve biodiesel economics.
Research houses have subsequently adjusted their CPO price assumptions for 2026 and 2027.
Hong Leong Investment Bank raised its 2026 estimates by RM150 per tonne to RM4,350 per tonne but kept its long term forecast of RM4,200 per tonne from 2027 as supply conditions gradually normalise.
"We expect prices to remain elevated at RM4,500-4,600 per tonne in 2Q26 before moderating from 3Q26 onwards," it said in a note on Wednesday.
"Based on our estimates, every RM100 per tonne increase in our average CPO price projection would lift earnings forecasts for plantation companies under our coverage by 3-8%," it added. The Edge
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Apr 9, 2026
Malaysia outlines phased expansion of national B20 biodiesel rollout
Malaysia plans to extend its palm‑based B20 biodiesel programme nationwide in stages, with the pace of implementation shaped by the sensitivity of palm oil prices relative to petroleum, according to the country’s Plantation and Commodities Minister.
As the world’s second‑largest producer of palm oil, Malaysia currently applies a B10 biodiesel mandate for the transport sector, with B20 already in place in Labuan, Langkawi and most of Sarawak.
Recent surges in crude oil prices, driven by the conflict involving Iran and the closure of the Strait of Hormuz, have renewed calls for the government to accelerate the shift towards higher biodiesel blends.
Responding to questions from Reuters, Minister Noraini Ahmad said the government remained committed to gradually increasing biodiesel usage. She noted that most regions still operate on B10, leaving “significant room” to move towards B20 and eventually B30.
Neighbouring Indonesia has already adopted a mandatory B40 blend and aims to begin B50 this year, a policy that has previously tightened global supply and pushed palm oil prices higher.
Malaysia produced 975,207 tonnes of biodiesel in 2025, well below its total production capacity of 2.36 million tonnes.
Noraini emphasised that upgrading blending depot infrastructure is essential, with approved funding allocated to enhance facilities in Sandakan, Tawau, Sepanggar and Bintulu. She added that these upgrades will be carried out in phases to ensure they align with the country’s financial position. Biofuels News
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FELDA Introduces B100, Biodiesel Made Entirely From Palm Oil As Alternative To Diesel
FELDA believes B100 could help reduce Malaysia's reliance on conventional diesel.
FELDA has introduced B100, a biodiesel made entirely from palm oil, as a potential alternative energy source amid global energy uncertainties driven by the West Asia crisis
According to Bernama, FELDA chairman Datuk Seri Ahmad Shabery Cheek said B100, which is 100% made from palm oil, has strong potential to become a competitive and sustainable substitute for conventional diesel.
He said FELDA is keen to implement the use of B100, but the initiative is still at the policy stage and will require government support to expand production capacity.
"At this stage, a government policy needs to be in place, as we may not have sufficient crude palm oil supply to roll out B100 immediately," he said during a press conference on Tuesday, 7 April.
Ahmad Shabery added that he has raised the matter with Prime Minister Datuk Seri Anwar Ibrahim and Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Shabery added that with an estimated price of below RM5 per litre, B100 could help reduce Malaysia's reliance on diesel, stabilise domestic fuel prices, and strengthen the country's energy security
He said the biodiesel's factory price is estimated to cost about RM4.50 per litre, based on crude palm oil prices, making it competitive with current diesel prices.
However, he said FELDA and FGV Holdings will also need to expand their B100 biodiesel processing facilities to increase production capacity.
"We are having discussions to determine the form of partnership, whether to involve full private sector participation, government support, or other parties, to meet the requirement of raising B100 capacity," he said.
He added that B100 is already being used within the FELDA ecosystem
He said pilot projects involving passenger vehicles were conducted in 2025, covering more than 50,000km over a 15-month period.
A separate four-month trial involving tanker trucks was also carried out earlier in 2024, he added. Says
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Prabowo plans processing centers for bio-based aviation fuel
Jakarta (ANTARA) - President Prabowo Subianto announced that the government will establish processing centers to convert palm oil and used cooking oil into aviation fuel, as part of efforts to develop alternative energy sources.
Speaking at the inauguration of an electric commercial vehicle assembly plant in Magelang, Central Java, on Thursday, Prabowo emphasized that aviation fuel can now be produced from palm oil, which is abundant in Indonesia.
He added that raw materials could also be sourced from recycled cooking oil waste.
“Now, aviation fuel can also be made from palm oil, and we have plenty of palm oil. In the future, aviation fuel can be made from used cooking oil, waste, and leftover cooking oil; we can process it into aviation fuel,” Prabowo said.
He further noted that the government will soon open processing centers and refineries dedicated to producing aviation fuel from these materials.
“In the near future, we will open processing centers and refineries for this. We will invest heavily in this sector,” he said.
Earlier, during a press conference at the Presidential Palace in Jakarta on April 8, Prabowo stated that the global crisis triggered by war presents an opportunity for Indonesia to accelerate the development of new and renewable energy to strengthen national security.
The president is promoting energy self-sufficiency by developing biofuels from cassava and corn as alternatives to diesel and gasoline, aiming to reduce fuel imports by maximizing domestic resources.
“And we can use coal; we can produce diesel and gasoline from coal, from cassava, from corn,” he said.
Prabowo stressed that Indonesia has a strong economic foundation and energy security to withstand global disruptions.
He noted that the country is relatively insulated from the direct impact of international energy supply shocks due to its independent energy sources. Antara News
Malaysia's plantation sector poised for stronger earnings on tightening supply, biodiesel push — analysts
KUALA LUMPUR (April 8): Malaysia’s plantation sector is poised for a stronger earnings cycle as tighter regional supply controls and rising biodiesel demand continue to underpin crude palm oil (CPO) prices, according to recent sector research reports.
Thailand’s move to tighten CPO export controls from April 7 is expected to lend near-term support to CPO prices by limiting supply availability in the global market.
Under the new measure, exporters must obtain prior written approval for each shipment to safeguard domestic supply amid rising local consumption and biodiesel demand.
While Thailand accounts for only a relatively small share of global palm oil exports, analysts said the policy reinforces a broader regional trend of prioritising domestic energy security and food supply, particularly as higher crude oil prices improve biodiesel economics.
Research houses have subsequently adjusted their CPO price assumptions for 2026 and 2027.
Hong Leong Investment Bank raised its 2026 estimates by RM150 per tonne to RM4,350 per tonne but kept its long term forecast of RM4,200 per tonne from 2027 as supply conditions gradually normalise.
"We expect prices to remain elevated at RM4,500-4,600 per tonne in 2Q26 before moderating from 3Q26 onwards," it said in a note on Wednesday.
"Based on our estimates, every RM100 per tonne increase in our average CPO price projection would lift earnings forecasts for plantation companies under our coverage by 3-8%," it added. The Edge
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Apr 9, 2026
Malaysia outlines phased expansion of national B20 biodiesel rollout
Malaysia plans to extend its palm‑based B20 biodiesel programme nationwide in stages, with the pace of implementation shaped by the sensitivity of palm oil prices relative to petroleum, according to the country’s Plantation and Commodities Minister.
As the world’s second‑largest producer of palm oil, Malaysia currently applies a B10 biodiesel mandate for the transport sector, with B20 already in place in Labuan, Langkawi and most of Sarawak.
Recent surges in crude oil prices, driven by the conflict involving Iran and the closure of the Strait of Hormuz, have renewed calls for the government to accelerate the shift towards higher biodiesel blends.
Responding to questions from Reuters, Minister Noraini Ahmad said the government remained committed to gradually increasing biodiesel usage. She noted that most regions still operate on B10, leaving “significant room” to move towards B20 and eventually B30.
Neighbouring Indonesia has already adopted a mandatory B40 blend and aims to begin B50 this year, a policy that has previously tightened global supply and pushed palm oil prices higher.
Malaysia produced 975,207 tonnes of biodiesel in 2025, well below its total production capacity of 2.36 million tonnes.
Noraini emphasised that upgrading blending depot infrastructure is essential, with approved funding allocated to enhance facilities in Sandakan, Tawau, Sepanggar and Bintulu. She added that these upgrades will be carried out in phases to ensure they align with the country’s financial position. Biofuels News
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FELDA Introduces B100, Biodiesel Made Entirely From Palm Oil As Alternative To Diesel
FELDA believes B100 could help reduce Malaysia's reliance on conventional diesel.
FELDA has introduced B100, a biodiesel made entirely from palm oil, as a potential alternative energy source amid global energy uncertainties driven by the West Asia crisis
According to Bernama, FELDA chairman Datuk Seri Ahmad Shabery Cheek said B100, which is 100% made from palm oil, has strong potential to become a competitive and sustainable substitute for conventional diesel.
He said FELDA is keen to implement the use of B100, but the initiative is still at the policy stage and will require government support to expand production capacity.
"At this stage, a government policy needs to be in place, as we may not have sufficient crude palm oil supply to roll out B100 immediately," he said during a press conference on Tuesday, 7 April.
Ahmad Shabery added that he has raised the matter with Prime Minister Datuk Seri Anwar Ibrahim and Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Shabery added that with an estimated price of below RM5 per litre, B100 could help reduce Malaysia's reliance on diesel, stabilise domestic fuel prices, and strengthen the country's energy security
He said the biodiesel's factory price is estimated to cost about RM4.50 per litre, based on crude palm oil prices, making it competitive with current diesel prices.
However, he said FELDA and FGV Holdings will also need to expand their B100 biodiesel processing facilities to increase production capacity.
"We are having discussions to determine the form of partnership, whether to involve full private sector participation, government support, or other parties, to meet the requirement of raising B100 capacity," he said.
He added that B100 is already being used within the FELDA ecosystem
He said pilot projects involving passenger vehicles were conducted in 2025, covering more than 50,000km over a 15-month period.
A separate four-month trial involving tanker trucks was also carried out earlier in 2024, he added. Says
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Prabowo plans processing centers for bio-based aviation fuel
Jakarta (ANTARA) - President Prabowo Subianto announced that the government will establish processing centers to convert palm oil and used cooking oil into aviation fuel, as part of efforts to develop alternative energy sources.
Speaking at the inauguration of an electric commercial vehicle assembly plant in Magelang, Central Java, on Thursday, Prabowo emphasized that aviation fuel can now be produced from palm oil, which is abundant in Indonesia.
He added that raw materials could also be sourced from recycled cooking oil waste.
“Now, aviation fuel can also be made from palm oil, and we have plenty of palm oil. In the future, aviation fuel can be made from used cooking oil, waste, and leftover cooking oil; we can process it into aviation fuel,” Prabowo said.
He further noted that the government will soon open processing centers and refineries dedicated to producing aviation fuel from these materials.
“In the near future, we will open processing centers and refineries for this. We will invest heavily in this sector,” he said.
Earlier, during a press conference at the Presidential Palace in Jakarta on April 8, Prabowo stated that the global crisis triggered by war presents an opportunity for Indonesia to accelerate the development of new and renewable energy to strengthen national security.
The president is promoting energy self-sufficiency by developing biofuels from cassava and corn as alternatives to diesel and gasoline, aiming to reduce fuel imports by maximizing domestic resources.
“And we can use coal; we can produce diesel and gasoline from coal, from cassava, from corn,” he said.
Prabowo stressed that Indonesia has a strong economic foundation and energy security to withstand global disruptions.
He noted that the country is relatively insulated from the direct impact of international energy supply shocks due to its independent energy sources. Antara News
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April 08, 2026
Indonesia sets biofuel mandate timeline, all biodiesel users to switch to B50 by 2028
JAKARTA, April 8 (Reuters) - Indonesia's energy ministry has issued a ministerial decree setting the timeline for the implementation of its biofuel blending mandate, an official said on Wednesday, as it tries meet its energy transition and self-sufficiency targets.
It said that by 2028, all biodiesel users will shift to the B50 standard, which includes 50% palm oil-based fuel.
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Indonesia prepares 3.5 million tons of CPO for mandatory B50 program
Makassar, South Sulawesi (ANTARA) - Agriculture Minister Andi Amran Sulaiman stated that 3.5 million tons of crude palm oil have been prepared to support the mandatory Biodiesel 50 (B50) program starting July 1, 2026.
"That is 5.3 million tons of our CPO that we convert into biofuel, this is the President's directive," he said regarding the energy resilience goal.
He explained that the policy is part of the B50 program which promotes plant-based energy while ensuring domestic needs are met sustainably.
Indonesia currently controls around 60 percent of the global CPO market, allowing the government to balance exports and domestic use.
CPO exports have increased from 26 million tons to 32 million tons, with 3.5 million tons specifically allocated for the B50 initiative.
Production rose by around six million tons, driven by higher global prices that encouraged farmers to improve productivity.
Sulaiman said the biofuel allocation will not disrupt exports because of the overall increase in national production.
"B50 will be achieved this year, and we are working with Energy and Mineral Resources Minister Bahlil Lahadalia," he said.
The policy is expected to strengthen energy security and improve farmers’ welfare while boosting economic activity in palm oil-producing regions.
The minister expressed optimism that utilizing CPO for biofuel will strengthen Indonesia’s position as a major player in the global market.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the B50 policy will save Rp48 trillion in subsidies.
"As part of efforts toward energy independence and efficiency, the government is implementing the B50 policy," Hartarto said.
He confirmed that the blend of 50 percent palm oil and 50 percent diesel fuel will take effect on July 1, 2026. Antara News
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Indonesia sets biofuel mandate timeline, all biodiesel users to switch to B50 by 2028
JAKARTA, April 8 (Reuters) - Indonesia's energy ministry has issued a ministerial decree setting the timeline for the implementation of its biofuel blending mandate, an official said on Wednesday, as it tries meet its energy transition and self-sufficiency targets.
It said that by 2028, all biodiesel users will shift to the B50 standard, which includes 50% palm oil-based fuel.
- Indonesia, the world's largest palm oil producer, originally planned to implement a mandatory blend of "at least" 40% palm-based biodiesel blended with 60% conventional diesel in 2026, according to the decree, which was signed on March 3.
- Indonesia has since said it will launch a programme to raise the mandatory blending rate for palm-based biodiesel from 40% to 50%, a standard known as B50, starting from July 1.
- The early implementation of B50 was part of a wider government plan to mitigate risks arising from the Iran war.
- Indonesia plans to keep the palm oil blending rate at 50% for subsidised diesel in 2027, but unsubsidised diesel could stay at 40%, depending on the capacity available. B50 will be the standard for all users by 2028, the decree said.
- "Through more comprehensive regulations and clear phasing, we want to ensure that biofuel utilisation can be implemented optimally, while still considering the readiness of raw materials, infrastructure, and industrial support," said director general of renewable energy Eniya Listiani Dewi in a statement on Wednesday.
- The energy ministry will issue a new ministerial decree to allocate the biodiesel required to meet the B50 goal in the second half of this year, Eniya said. It had previously allocated 15.65 million kilolitres for 2026 to meet the B40 standard.
- Indonesia also plans to mix non-subsidised gasoline with at least 5% ethanol in Java, the country's most populated island, over the 2026-2027 period, and raise the proportion to 10% by 2028.
- Southeast Asia's largest economy, Indonesia, is also planning to roll out a sustainable aviation fuel (SAF) mandate starting from 2027.
- From next year, flights operating in Jakarta's Soekarno Hatta International Airport and Bali's I Gusti Ngurah Rai International Airport, two of Indonesia's busiest airports, will use fuel consisting of 1% SAF.
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Indonesia prepares 3.5 million tons of CPO for mandatory B50 program
Makassar, South Sulawesi (ANTARA) - Agriculture Minister Andi Amran Sulaiman stated that 3.5 million tons of crude palm oil have been prepared to support the mandatory Biodiesel 50 (B50) program starting July 1, 2026.
"That is 5.3 million tons of our CPO that we convert into biofuel, this is the President's directive," he said regarding the energy resilience goal.
He explained that the policy is part of the B50 program which promotes plant-based energy while ensuring domestic needs are met sustainably.
Indonesia currently controls around 60 percent of the global CPO market, allowing the government to balance exports and domestic use.
CPO exports have increased from 26 million tons to 32 million tons, with 3.5 million tons specifically allocated for the B50 initiative.
Production rose by around six million tons, driven by higher global prices that encouraged farmers to improve productivity.
Sulaiman said the biofuel allocation will not disrupt exports because of the overall increase in national production.
"B50 will be achieved this year, and we are working with Energy and Mineral Resources Minister Bahlil Lahadalia," he said.
The policy is expected to strengthen energy security and improve farmers’ welfare while boosting economic activity in palm oil-producing regions.
The minister expressed optimism that utilizing CPO for biofuel will strengthen Indonesia’s position as a major player in the global market.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the B50 policy will save Rp48 trillion in subsidies.
"As part of efforts toward energy independence and efficiency, the government is implementing the B50 policy," Hartarto said.
He confirmed that the blend of 50 percent palm oil and 50 percent diesel fuel will take effect on July 1, 2026. Antara News
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April 07, 2026
Oiltek, Bioseaga to develop $350m SAF facility in Borneo
SINGAPORE (ICIS)–Oiltek International has entered into a pre-agreement with Brunei-based renewable fuels firm Bioseaga Industries to build a sustainable aviation fuel (SAF) facility in Sabah.
The biorefinery, which has a planned capacity of about 300 tonnes/day, is estimated to cost around $350 million, Oiltek said in a regulatory filing on 6 April.
Primary feedstocks will include palm oil mill effluent (POME) and used cooking oil (UCO).
Oiltek’s subsidiary, Oiltek Malaysia, will lead the construction of the project, including pre-treatment facilities, the SAF production plant, tank farm and logistic bulking infrastructure, and partial blending facilities.
The project has scope to expand into advanced fuels, including green hydrogen and other low-carbon energy derivatives, Oiltek said.
“The Board is of the view that the project will enable the Group to further deepen its participation in the rapidly expanding SAF value chain,” Oiltek CEO Henry Yong Khai Weng said. ICIS
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Indonesia to roll out B50 biodiesel from July 1: Lahadalia
Jakarta (ANTARA) - Indonesia will implement B50 biodiesel starting July 1 after nearly six months of trials showed positive results, Energy Minister Bahlil Lahadalia said on Monday.
The B50 blend consists of 50 percent crude palm oil (CPO) and 50 percent fossil diesel, and has been tested across multiple sectors, including heavy equipment, ships, trains and trucks.
“It will be finalized soon, and implementation will begin on July 1,” Lahadalia said, adding that the policy is expected to strengthen energy security by reducing reliance on imported fuels and expanding the use of domestic renewable resources.
According to Lahadalia, recent geopolitical tensions in the Middle East highlight the risks faced by countries heavily dependent on imported energy.
“Without diversification, our energy security would be vulnerable. We must rely on our own resources,” he said.
Indonesia currently enforces a B40 mandate, which blends 40 percent palm-based biodiesel with 60 percent petroleum diesel.
The B40 program has reduced diesel imports by 3.3 million kiloliters (kL) and cut carbon emissions by 38.88 million tonnes of CO2 equivalent, the minister said.
Government data show biodiesel utilization reached 14.2 million kL in 2025, or 105.2 percent of the target of 13.5 million kL.
The planned shift to B50 is part of President Prabowo Subianto’s strategy to strengthen resilience against global supply disruptions.
The government estimates the policy could reduce fossil fuel consumption by about 4 million kL annually.
It is also expected to save up to Rp48 trillion (US$2.81 billion) in subsidies, Coordinating Economic Minister Airlangga Hartarto said earlier.
State energy firm PT Pertamina has expressed readiness to support the rollout, including supply and distribution.
Indonesia, the world’s largest palm oil producer, has expanded biodiesel use over the past decade to curb fuel imports and stabilize domestic palm oil demand.
Officials say the B50 rollout will be implemented gradually to ensure supply stability and technical readiness across sectors.
Further evaluations will be conducted during the initial phase to monitor performance and address potential operational challenges. Antara News
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BPDP Danai 400 Research on Palm Oil, PASPI: Productivity is Still Stagnant
JAKARTA - The Plantation Fund Management Agency (BPDP) is considered to have a strategic role in supporting the development of national palm oil industry research.
Until 2025, the institution has funded around 400 research titles covering various aspects of the upstream to downstream palm oil sector.
The Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) Tungkot Sipayung said the funding support for research carried out by BPDP was proof of the government's commitment to strengthening the competitiveness of the Indonesian palm oil industry.
"Research funded by BPDP starts from the upstream to the downstream of the palm oil sector. From this point of view, BPDP's commitment to supporting palm oil research is very clear," said Tungkot through a written statement received by VOI, Tuesday, April 7.
According to him, research funded by BPDP covers various fields, ranging from the development of new materials based on high-value palm and biomass to studies on plantation environments and sustainability certification to support the circular economy.
However, Tungkot assessed that there were still major challenges in the implementation of research results in the industrial sector. Many research results still stop at the stage of scientific publication and have not been applied in business practices.
"What the palm oil industry needs is business innovation. It is ironic indeed, palm oil research is increasing but palm oil productivity is stagnant and even declining," he said.
He gave an example of research on ganoderma disease that attacks oil palm plants.
Although there are quite a lot of studies related to the disease, until now there is no national policy that can provide a comprehensive solution.
In the future, Tungkot assessed that it was necessary to accelerate the implementation of research results so that they could become real business and policy innovations for the industry.
In addition, the research paradigm also needs to shift from a supply-driven approach to a market-driven approach.
He added that research in the palm oil sector must also be able to answer global challenges, including issues of sustainability, productivity improvement, industry efficiency, to the creation of new products and markets. VOI
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Oiltek, Bioseaga to develop $350m SAF facility in Borneo
SINGAPORE (ICIS)–Oiltek International has entered into a pre-agreement with Brunei-based renewable fuels firm Bioseaga Industries to build a sustainable aviation fuel (SAF) facility in Sabah.
The biorefinery, which has a planned capacity of about 300 tonnes/day, is estimated to cost around $350 million, Oiltek said in a regulatory filing on 6 April.
Primary feedstocks will include palm oil mill effluent (POME) and used cooking oil (UCO).
Oiltek’s subsidiary, Oiltek Malaysia, will lead the construction of the project, including pre-treatment facilities, the SAF production plant, tank farm and logistic bulking infrastructure, and partial blending facilities.
The project has scope to expand into advanced fuels, including green hydrogen and other low-carbon energy derivatives, Oiltek said.
“The Board is of the view that the project will enable the Group to further deepen its participation in the rapidly expanding SAF value chain,” Oiltek CEO Henry Yong Khai Weng said. ICIS
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Indonesia to roll out B50 biodiesel from July 1: Lahadalia
Jakarta (ANTARA) - Indonesia will implement B50 biodiesel starting July 1 after nearly six months of trials showed positive results, Energy Minister Bahlil Lahadalia said on Monday.
The B50 blend consists of 50 percent crude palm oil (CPO) and 50 percent fossil diesel, and has been tested across multiple sectors, including heavy equipment, ships, trains and trucks.
“It will be finalized soon, and implementation will begin on July 1,” Lahadalia said, adding that the policy is expected to strengthen energy security by reducing reliance on imported fuels and expanding the use of domestic renewable resources.
According to Lahadalia, recent geopolitical tensions in the Middle East highlight the risks faced by countries heavily dependent on imported energy.
“Without diversification, our energy security would be vulnerable. We must rely on our own resources,” he said.
Indonesia currently enforces a B40 mandate, which blends 40 percent palm-based biodiesel with 60 percent petroleum diesel.
The B40 program has reduced diesel imports by 3.3 million kiloliters (kL) and cut carbon emissions by 38.88 million tonnes of CO2 equivalent, the minister said.
Government data show biodiesel utilization reached 14.2 million kL in 2025, or 105.2 percent of the target of 13.5 million kL.
The planned shift to B50 is part of President Prabowo Subianto’s strategy to strengthen resilience against global supply disruptions.
The government estimates the policy could reduce fossil fuel consumption by about 4 million kL annually.
It is also expected to save up to Rp48 trillion (US$2.81 billion) in subsidies, Coordinating Economic Minister Airlangga Hartarto said earlier.
State energy firm PT Pertamina has expressed readiness to support the rollout, including supply and distribution.
Indonesia, the world’s largest palm oil producer, has expanded biodiesel use over the past decade to curb fuel imports and stabilize domestic palm oil demand.
Officials say the B50 rollout will be implemented gradually to ensure supply stability and technical readiness across sectors.
Further evaluations will be conducted during the initial phase to monitor performance and address potential operational challenges. Antara News
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BPDP Danai 400 Research on Palm Oil, PASPI: Productivity is Still Stagnant
JAKARTA - The Plantation Fund Management Agency (BPDP) is considered to have a strategic role in supporting the development of national palm oil industry research.
Until 2025, the institution has funded around 400 research titles covering various aspects of the upstream to downstream palm oil sector.
The Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) Tungkot Sipayung said the funding support for research carried out by BPDP was proof of the government's commitment to strengthening the competitiveness of the Indonesian palm oil industry.
"Research funded by BPDP starts from the upstream to the downstream of the palm oil sector. From this point of view, BPDP's commitment to supporting palm oil research is very clear," said Tungkot through a written statement received by VOI, Tuesday, April 7.
According to him, research funded by BPDP covers various fields, ranging from the development of new materials based on high-value palm and biomass to studies on plantation environments and sustainability certification to support the circular economy.
However, Tungkot assessed that there were still major challenges in the implementation of research results in the industrial sector. Many research results still stop at the stage of scientific publication and have not been applied in business practices.
"What the palm oil industry needs is business innovation. It is ironic indeed, palm oil research is increasing but palm oil productivity is stagnant and even declining," he said.
He gave an example of research on ganoderma disease that attacks oil palm plants.
Although there are quite a lot of studies related to the disease, until now there is no national policy that can provide a comprehensive solution.
In the future, Tungkot assessed that it was necessary to accelerate the implementation of research results so that they could become real business and policy innovations for the industry.
In addition, the research paradigm also needs to shift from a supply-driven approach to a market-driven approach.
He added that research in the palm oil sector must also be able to answer global challenges, including issues of sustainability, productivity improvement, industry efficiency, to the creation of new products and markets. VOI
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April 06, 2026
Indonesia’s exports of crude palm oil rose to $4.69bn in first two months of 2026
Indonesia’s exports of crude palm oil (CPO) and its derivatives rose significantly to $4.69 billion in the first two months of 2026, up from $3.71 billion during the same period last year.
Agriculture Minister Andi Amran Sulaiman attributed the growth to the nation’s aggressive "downstreaming" strategy, which prioritizes domestic processing over the export of raw materials.
“We control more than 60 per cent of the global market, making Indonesia a decisive player. We must continue to accelerate downstreaming,” Sulaiman said as quoted by Indonesian news agency (ANTARA).
The Minister emphasised that the government is strengthening the production and marketing ecosystem to increase the added value of palm oil.
By processing CPO into high-value commodities such as margarine, cosmetics, and other industrial derivatives, Sulaiman believes the global market will become increasingly reliant on Indonesian supply, further stabilizing the national economy.
Data from the Central Statistics Agency (BPS) confirms a 26.40 per cent increase in the export value of CPO and its derivatives for the January-February 2026 period.
Export volumes also saw a sharp rise, climbing from 3.33 million tonnes in early 2025 to 4.54 million tonnes in the same period this year. This surge has been a primary driver for Indonesia’s overall trade performance. Trade Arabia
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Thailand tightens crude palm oil export controls
A Royal Gazette notice will require permits for crude palm oil exports from April 7, as Thailand moves to protect domestic supply amid energy and export pressure.
Thailand will tighten controls on crude palm oil exports from April 7, requiring exporters to obtain prior written approval in a move aimed at protecting domestic supply amid rising energy and export demand. The measure was published in the Royal Gazette as Announcement No. 1 of 2026 by the Central Committee on the Price of Goods and Services.
Under the notice, no one may export crude palm oil, or CPO, from April 7 onwards unless they first obtain written permission from the secretary-general of the Central Committee on the Price of Goods and Services. Applications must be filed with the Office of the Central Committee on the Price of Goods and Services at the Department of Internal Trade under the Commerce Ministry.
Permit requirement starts on April 7
The announcement says the control measure will apply nationwide for one year from the day after publication, unless a new notice is issued earlier. It defines crude palm oil as CPO under customs tariff subheading 1511.10.00.
Exporters granted approval must ship only the type, quantity, timeframe and destination stated in the permit, and the permit must accompany every export shipment. Each permit may be used for one export only. Any shipment that fails to comply with those conditions will be treated as an unauthorised export. Nation Thailand
Indonesia’s exports of crude palm oil rose to $4.69bn in first two months of 2026
Indonesia’s exports of crude palm oil (CPO) and its derivatives rose significantly to $4.69 billion in the first two months of 2026, up from $3.71 billion during the same period last year.
Agriculture Minister Andi Amran Sulaiman attributed the growth to the nation’s aggressive "downstreaming" strategy, which prioritizes domestic processing over the export of raw materials.
“We control more than 60 per cent of the global market, making Indonesia a decisive player. We must continue to accelerate downstreaming,” Sulaiman said as quoted by Indonesian news agency (ANTARA).
The Minister emphasised that the government is strengthening the production and marketing ecosystem to increase the added value of palm oil.
By processing CPO into high-value commodities such as margarine, cosmetics, and other industrial derivatives, Sulaiman believes the global market will become increasingly reliant on Indonesian supply, further stabilizing the national economy.
Data from the Central Statistics Agency (BPS) confirms a 26.40 per cent increase in the export value of CPO and its derivatives for the January-February 2026 period.
Export volumes also saw a sharp rise, climbing from 3.33 million tonnes in early 2025 to 4.54 million tonnes in the same period this year. This surge has been a primary driver for Indonesia’s overall trade performance. Trade Arabia
--------
Thailand tightens crude palm oil export controls
A Royal Gazette notice will require permits for crude palm oil exports from April 7, as Thailand moves to protect domestic supply amid energy and export pressure.
Thailand will tighten controls on crude palm oil exports from April 7, requiring exporters to obtain prior written approval in a move aimed at protecting domestic supply amid rising energy and export demand. The measure was published in the Royal Gazette as Announcement No. 1 of 2026 by the Central Committee on the Price of Goods and Services.
Under the notice, no one may export crude palm oil, or CPO, from April 7 onwards unless they first obtain written permission from the secretary-general of the Central Committee on the Price of Goods and Services. Applications must be filed with the Office of the Central Committee on the Price of Goods and Services at the Department of Internal Trade under the Commerce Ministry.
Permit requirement starts on April 7
The announcement says the control measure will apply nationwide for one year from the day after publication, unless a new notice is issued earlier. It defines crude palm oil as CPO under customs tariff subheading 1511.10.00.
Exporters granted approval must ship only the type, quantity, timeframe and destination stated in the permit, and the permit must accompany every export shipment. Each permit may be used for one export only. Any shipment that fails to comply with those conditions will be treated as an unauthorised export. Nation Thailand
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April 05, 2026
Indonesia’s new replanting subsidy is insufficient to empower smallholder farmers to replant aging oil palms
The rapid expansion of oil palm plantations in Indonesia during the 1990s and early 2000s has resulted in an increasing number of aging palms with declining yields. Replanting is urgently needed, particularly for smallholder plantations, to sustain or enhance productivity. In response, the Indonesian government launched the smallholder palm replanting scheme in 2016, providing 30 million rupiah (~$1815) per hectare in subsidies, with a goal of replacing 2.5 million hectares of old trees by 2025. However, as of 2023, only 326,308 hectares had been approved. To accelerate replanting, the government doubled the subsidy to 60 million rupiah (~$3631) per hectare in 2024. However, a significant knowledge gap remains regarding the economic implications of delayed replanting from the smallholder perspective. This study evaluates the economic impacts of different replanting strategies using scenario analysis. Our findings indicate that smallholder farmers often delay replanting because it provides greater economic stability and comparable long-term returns in the absence of access to replanting subsidies and certified seedlings. While subsidies can improve long-term profitability (by 30% when replanting at age 25), the 7–8 year income recovery period remains a major deterrent. Thus, subsidies alone are insufficient to accelerate replanting, and additional financial support is needed to help farmers navigate the unproductive years of newly planted palms. Moreover, smallholders face multiple barriers to access subsidies, including the lack of land ownership certificates, the requirement to be part of a farmer group with at least 50 hectares of aging oil palm, and land legality issues in forest zones. Our study provides valuable insights into smallholder replanting decisions and highlights strategies to incentivize faster replanting of aging oil palms. Nature
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Nigeria Launches Palm Oil Strategy Targeting 10% Global Market Share in Six Years
Nigeria launches strategy to boost palm oil production
Plan targets 10% global market share and sector reforms
Country seeks self-sufficiency while reducing import dependence
Nigeria has unveiled a national strategy to develop its palm oil sector. The roadmap, presented at a stakeholder meeting in Abuja on April 2, aims to secure 10% of the global palm oil market over the next six years and achieve self-sufficiency by 2050, according to authorities.
Local media report that the plan will focus on improving oil palm yields, expanding cultivated areas and modernising processing infrastructure.
Beyond primary production, the strategy also includes institutional reforms to better structure governance of the sector. It предусматри the creation of a National Palm Oil Council, along with dedicated financing mechanisms, including a sector development fund and a fund for smallholder farmers.
“We have never had a policy before. This is the first time Nigeria will have a document validated and launched by the government and stakeholders to drive, regulate and stimulate the industry,” said Alphonsus Nyang, president of the National Palm Produce Association of Nigeria.
According to Nyang, the new framework will establish a governance structure similar to those in leading palm oil producers such as Malaysia and Indonesia.
Currently, local production covers about 75% of domestic demand. In its latest world oilseed market report, the U.S. Department of Agriculture expects Nigeria to produce 1.5 million metric tons of palm oil in 2026, unchanged from the previous year, while consumption is estimated at 1.95 million metric tons.
The deficit is met through imports. According to the USDA, Nigeria sources about 92% of its palm oil imports from Malaysia, with the remainder coming from Ghana, Indonesia and Côte d’Ivoire. Significant volumes of unregistered palm oil derivatives also enter the market through informal cross-border trade from neighbouring countries including Benin, Togo and Cameroon. Ecofin Agency
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Huge loan needed to finance fuel subsidies
Thailand's Oil Fuel Fund is seeking a loan of up to 150 billion baht to stabilise its finances and continue subsidising domestic fuel prices as global diesel costs soar, according to Prasert Sinsukprasert, energy permanent secretary.
The fund, which recorded a loss of 48.2 billion baht as of April 2, well above the legal limit of 40 billion baht, has been forced to scale back diesel subsidies.
Support was reduced from 22.89 baht to 17.78 baht per litre, pushing retail diesel prices up by 3.5 baht to 44.24 baht per litre, nearly 50% higher than a month ago.
Subsidies for diesel are currently capped at 1.4 billion baht per day.
Mr Prasert said the proposed loan would allow the fund to continue subsidising fuel for two more months. Bangkok Post
Please credit and share this article with others using this link: https://www.bangkokpost.com/business/general/3230233/huge-loan-needed-to-finance-fuel-subsidies. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
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Safaris turn Malaysian oil palm plantations into wildlife corridors
On Borneo, NGOs are testing a radical conservation model Nikkei Asia
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Illegal Palm Oil Cleared to Save North Sumatra’s Mangrove Sanctuaries
Key Points
The enforcement action, which commenced Thursday, April 2, 2026, aims to purge 102 hectares of illegal palm oil crops. This is the first phase of a broader strategic initiative to restore 389 hectares of mangrove ecosystems throughout 2025–2026. By removing the thirsty palm trees, officials hope to return the tidal balance necessary for coastal flora to thrive.
Director of Forest Crime Enforcement at the Ministry of Foresstry, Rudianto Saragih Napitu framed the operation as a non-negotiable assertion of state authority over conservation areas.
“We are not only taking firm action against illegal land occupation but also ensuring that the ecosystem recovery process goes hand-in-hand with community economic empowerment,” Rudianto said, as quoted by Infopublik.id, on April 4, 2026. RRI
Indonesia’s new replanting subsidy is insufficient to empower smallholder farmers to replant aging oil palms
The rapid expansion of oil palm plantations in Indonesia during the 1990s and early 2000s has resulted in an increasing number of aging palms with declining yields. Replanting is urgently needed, particularly for smallholder plantations, to sustain or enhance productivity. In response, the Indonesian government launched the smallholder palm replanting scheme in 2016, providing 30 million rupiah (~$1815) per hectare in subsidies, with a goal of replacing 2.5 million hectares of old trees by 2025. However, as of 2023, only 326,308 hectares had been approved. To accelerate replanting, the government doubled the subsidy to 60 million rupiah (~$3631) per hectare in 2024. However, a significant knowledge gap remains regarding the economic implications of delayed replanting from the smallholder perspective. This study evaluates the economic impacts of different replanting strategies using scenario analysis. Our findings indicate that smallholder farmers often delay replanting because it provides greater economic stability and comparable long-term returns in the absence of access to replanting subsidies and certified seedlings. While subsidies can improve long-term profitability (by 30% when replanting at age 25), the 7–8 year income recovery period remains a major deterrent. Thus, subsidies alone are insufficient to accelerate replanting, and additional financial support is needed to help farmers navigate the unproductive years of newly planted palms. Moreover, smallholders face multiple barriers to access subsidies, including the lack of land ownership certificates, the requirement to be part of a farmer group with at least 50 hectares of aging oil palm, and land legality issues in forest zones. Our study provides valuable insights into smallholder replanting decisions and highlights strategies to incentivize faster replanting of aging oil palms. Nature
--------
Nigeria Launches Palm Oil Strategy Targeting 10% Global Market Share in Six Years
Nigeria launches strategy to boost palm oil production
Plan targets 10% global market share and sector reforms
Country seeks self-sufficiency while reducing import dependence
Nigeria has unveiled a national strategy to develop its palm oil sector. The roadmap, presented at a stakeholder meeting in Abuja on April 2, aims to secure 10% of the global palm oil market over the next six years and achieve self-sufficiency by 2050, according to authorities.
Local media report that the plan will focus on improving oil palm yields, expanding cultivated areas and modernising processing infrastructure.
Beyond primary production, the strategy also includes institutional reforms to better structure governance of the sector. It предусматри the creation of a National Palm Oil Council, along with dedicated financing mechanisms, including a sector development fund and a fund for smallholder farmers.
“We have never had a policy before. This is the first time Nigeria will have a document validated and launched by the government and stakeholders to drive, regulate and stimulate the industry,” said Alphonsus Nyang, president of the National Palm Produce Association of Nigeria.
According to Nyang, the new framework will establish a governance structure similar to those in leading palm oil producers such as Malaysia and Indonesia.
Currently, local production covers about 75% of domestic demand. In its latest world oilseed market report, the U.S. Department of Agriculture expects Nigeria to produce 1.5 million metric tons of palm oil in 2026, unchanged from the previous year, while consumption is estimated at 1.95 million metric tons.
The deficit is met through imports. According to the USDA, Nigeria sources about 92% of its palm oil imports from Malaysia, with the remainder coming from Ghana, Indonesia and Côte d’Ivoire. Significant volumes of unregistered palm oil derivatives also enter the market through informal cross-border trade from neighbouring countries including Benin, Togo and Cameroon. Ecofin Agency
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Huge loan needed to finance fuel subsidies
Thailand's Oil Fuel Fund is seeking a loan of up to 150 billion baht to stabilise its finances and continue subsidising domestic fuel prices as global diesel costs soar, according to Prasert Sinsukprasert, energy permanent secretary.
The fund, which recorded a loss of 48.2 billion baht as of April 2, well above the legal limit of 40 billion baht, has been forced to scale back diesel subsidies.
Support was reduced from 22.89 baht to 17.78 baht per litre, pushing retail diesel prices up by 3.5 baht to 44.24 baht per litre, nearly 50% higher than a month ago.
Subsidies for diesel are currently capped at 1.4 billion baht per day.
Mr Prasert said the proposed loan would allow the fund to continue subsidising fuel for two more months. Bangkok Post
Please credit and share this article with others using this link: https://www.bangkokpost.com/business/general/3230233/huge-loan-needed-to-finance-fuel-subsidies. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
----------
Safaris turn Malaysian oil palm plantations into wildlife corridors
On Borneo, NGOs are testing a radical conservation model Nikkei Asia
--------
Illegal Palm Oil Cleared to Save North Sumatra’s Mangrove Sanctuaries
Key Points
- The government cleared 102 hectares of illegal palm oil plantations in the Karang Gading Wildlife Reserve to restore mangroves and protect the coast.
- The clearing involved the community and international support.
The enforcement action, which commenced Thursday, April 2, 2026, aims to purge 102 hectares of illegal palm oil crops. This is the first phase of a broader strategic initiative to restore 389 hectares of mangrove ecosystems throughout 2025–2026. By removing the thirsty palm trees, officials hope to return the tidal balance necessary for coastal flora to thrive.
Director of Forest Crime Enforcement at the Ministry of Foresstry, Rudianto Saragih Napitu framed the operation as a non-negotiable assertion of state authority over conservation areas.
“We are not only taking firm action against illegal land occupation but also ensuring that the ecosystem recovery process goes hand-in-hand with community economic empowerment,” Rudianto said, as quoted by Infopublik.id, on April 4, 2026. RRI
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April 04, 2026
Indonesia rebalances energy policy as Iran war spurs new projects
As oil prices surge, Indonesia aims to reduce its reliance on fossil fuels and intensify the use of crude palm oil for diesel blending
Indonesia is accelerating the transition to clean and renewable energy while pushing for more investments in oil and gas projects, critical minerals and rare earth mining, amid the global energy crisis triggered by the Middle East conflict.
In the past week, Jakarta signed a raft of deals with international partners to develop renewable and fossil fuel projects, aimed at achieving energy security as an insurance against the impact of heightened geopolitical tensions.
Green energy could also reduce the burden on the state budget, as the Iran war has pushed Brent crude oil prices past US$100 per barrel, beyond the US$70 per barrel Indonesia used for this year’s budget assumption.
“In the next three years, we want to [have] 100 gigawatts of solar energy. For us, this is more urgent because of the situation we are seeing now,” President Prabowo Subianto told the Indonesia–Japan Business Forum in Tokyo on Monday.
During a meeting with Japanese Prime Minister Sanae Takaichi on Tuesday, Prabowo invited Japan to develop Indonesia’s nuclear and renewable energy, as well as to support its downstreaming policy, which bans raw critical mineral exports such as nickel and bauxite in favour of domestic processing.
Both leaders said the collaboration on critical minerals would accelerate the realisation of the Asia Zero Emission Community Initiative, proposed by Japan in 2022 to support climate policy development in Southeast Asia.
Prabowo also offered oil and gas projects to Japanese firms. On Monday, Japanese and Indonesian companies signed 10 agreements worth US$23.63 billion to build the long-delayed Abadi liquefied natural gas project in the Masela Block, geothermal plants in Sumatra and other developments.
On his visit to Seoul on Wednesday, Prabowo witnessed the signing of 17 memorandums of understanding between South Korean and Indonesian companies, worth US$10.2 billion, covering projects such as solar power, carbon capture and storage, and renewable energy.
Fossil fuel dependency
Fabby Tumiwa, chief executive officer at the Institute for Essential Services Reform, said Indonesia was recalibrating its energy policy due to the Iran war.
“The government anticipates uncertainty about energy supplies following the Iran war. The worst-case scenario, if Iran retaliates by attacking energy facilities in the Gulf states, would result in a longer-term energy crisis even after the war is over,” Fabby said.
“Indonesia responded to the crisis with the overarching theme of reducing dependence on fossil fuels, our Achilles’ heel, as 85 per cent of our energy supply comes from fossil fuels. This makes us vulnerable.”
The partnership in green energy and fossil fuel projects with Japan shows that “investment in fossil fuels will still be needed during the transition process, because we won’t be able to eliminate them in five to 10 years,” according to Fabby.
“Oil and gas, they’re not just for fuel; they’re needed as raw materials for petrochemicals. Gas is also used for fertiliser. We can’t avoid that. So, even though we want to develop renewable energy and achieve net-zero emissions by 2060 or earlier, that doesn’t mean we’ll abandon fossil fuels in the short and medium term,” he said.
However, he cautioned that renewable energy “should not be a secondary priority” if Indonesia wanted to achieve energy independence. SCMP
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INTERVIEW: Rising diesel costs squeeze Malaysian biofuel feedstock logistics
Rising diesel prices, driven higher by conflict in the Middle East, are increasing logistics costs and complicating the collection of palm oil mill effluent and used cooking oil for biofuel feedstock exports, Malaysian feedstocks supplier Gamalux Sdn Bhd's Chief Commercial Officer Amila Kamarudin told Platts, part of S&P Global Energy, in an interview. Transporters have increased quotes by 40% to SP Global
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Malaysia’s palm oil sector well placed despite Middle East conflict
Palm oil production is less affected by fertiliser supply disruptions due to the Middle East conflict, leaving the industry in a relatively safe position.
KUALA LUMPUR: Malaysia, a leading palm oil exporter, is well placed to supply edible oils to countries facing rising food prices and fertiliser disruptions due to the Strait of Hormuz closure.
Julian McGill, the managing director of UK-based economic advisory firm Glenauk Economics, attributed this to palm oil production being less affected by fertiliser supply disruptions due to the ongoing conflict in the Middle East.
He said that oil palm, Malaysia’s most important crop, accounts for around 75% of the country’s planted area and has several characteristics that put the sector in a safe position.
He explained that food crops such as fruits and vegetables are heavily dependent on nitrogen-based fertilisers, of which the Gulf regions produce a quarter to a third of the global supply.
“With disruption (from the conflict), prices have shot up. The secondary effect is that countries such as China and Russia are restricting their exports,” he said on Bernama TV’s Bernama World programme entitled ‘The Impact of the Middle East Conflict on Global Agriculture’.
McGill said that oil palm, while a heavy user of fertilisers, uses a lot of potash and not nitrogen-based fertilisers.
He added that many big producers tend to pre-buy fertilisers, with up to 60-70% of the required volume already secured.
“We have to see whether the suppliers will honour the contracts with the volatility of prices, but in effect, they have already pre-bought,” he said.
McGill said even if there is a cutback on fertilisers today, it will take a fairly long time, up to two years, to impact production.
“Palm oil can continue reasonably well, even if this (conflict) is causing big problems for the planning and decision-making. We are not going to see an immediate collapse in palm oil production,” he said. FMT
Indonesia rebalances energy policy as Iran war spurs new projects
As oil prices surge, Indonesia aims to reduce its reliance on fossil fuels and intensify the use of crude palm oil for diesel blending
Indonesia is accelerating the transition to clean and renewable energy while pushing for more investments in oil and gas projects, critical minerals and rare earth mining, amid the global energy crisis triggered by the Middle East conflict.
In the past week, Jakarta signed a raft of deals with international partners to develop renewable and fossil fuel projects, aimed at achieving energy security as an insurance against the impact of heightened geopolitical tensions.
Green energy could also reduce the burden on the state budget, as the Iran war has pushed Brent crude oil prices past US$100 per barrel, beyond the US$70 per barrel Indonesia used for this year’s budget assumption.
“In the next three years, we want to [have] 100 gigawatts of solar energy. For us, this is more urgent because of the situation we are seeing now,” President Prabowo Subianto told the Indonesia–Japan Business Forum in Tokyo on Monday.
During a meeting with Japanese Prime Minister Sanae Takaichi on Tuesday, Prabowo invited Japan to develop Indonesia’s nuclear and renewable energy, as well as to support its downstreaming policy, which bans raw critical mineral exports such as nickel and bauxite in favour of domestic processing.
Both leaders said the collaboration on critical minerals would accelerate the realisation of the Asia Zero Emission Community Initiative, proposed by Japan in 2022 to support climate policy development in Southeast Asia.
Prabowo also offered oil and gas projects to Japanese firms. On Monday, Japanese and Indonesian companies signed 10 agreements worth US$23.63 billion to build the long-delayed Abadi liquefied natural gas project in the Masela Block, geothermal plants in Sumatra and other developments.
On his visit to Seoul on Wednesday, Prabowo witnessed the signing of 17 memorandums of understanding between South Korean and Indonesian companies, worth US$10.2 billion, covering projects such as solar power, carbon capture and storage, and renewable energy.
Fossil fuel dependency
Fabby Tumiwa, chief executive officer at the Institute for Essential Services Reform, said Indonesia was recalibrating its energy policy due to the Iran war.
“The government anticipates uncertainty about energy supplies following the Iran war. The worst-case scenario, if Iran retaliates by attacking energy facilities in the Gulf states, would result in a longer-term energy crisis even after the war is over,” Fabby said.
“Indonesia responded to the crisis with the overarching theme of reducing dependence on fossil fuels, our Achilles’ heel, as 85 per cent of our energy supply comes from fossil fuels. This makes us vulnerable.”
The partnership in green energy and fossil fuel projects with Japan shows that “investment in fossil fuels will still be needed during the transition process, because we won’t be able to eliminate them in five to 10 years,” according to Fabby.
“Oil and gas, they’re not just for fuel; they’re needed as raw materials for petrochemicals. Gas is also used for fertiliser. We can’t avoid that. So, even though we want to develop renewable energy and achieve net-zero emissions by 2060 or earlier, that doesn’t mean we’ll abandon fossil fuels in the short and medium term,” he said.
However, he cautioned that renewable energy “should not be a secondary priority” if Indonesia wanted to achieve energy independence. SCMP
--------
INTERVIEW: Rising diesel costs squeeze Malaysian biofuel feedstock logistics
Rising diesel prices, driven higher by conflict in the Middle East, are increasing logistics costs and complicating the collection of palm oil mill effluent and used cooking oil for biofuel feedstock exports, Malaysian feedstocks supplier Gamalux Sdn Bhd's Chief Commercial Officer Amila Kamarudin told Platts, part of S&P Global Energy, in an interview. Transporters have increased quotes by 40% to SP Global
--------
Malaysia’s palm oil sector well placed despite Middle East conflict
Palm oil production is less affected by fertiliser supply disruptions due to the Middle East conflict, leaving the industry in a relatively safe position.
KUALA LUMPUR: Malaysia, a leading palm oil exporter, is well placed to supply edible oils to countries facing rising food prices and fertiliser disruptions due to the Strait of Hormuz closure.
Julian McGill, the managing director of UK-based economic advisory firm Glenauk Economics, attributed this to palm oil production being less affected by fertiliser supply disruptions due to the ongoing conflict in the Middle East.
He said that oil palm, Malaysia’s most important crop, accounts for around 75% of the country’s planted area and has several characteristics that put the sector in a safe position.
He explained that food crops such as fruits and vegetables are heavily dependent on nitrogen-based fertilisers, of which the Gulf regions produce a quarter to a third of the global supply.
“With disruption (from the conflict), prices have shot up. The secondary effect is that countries such as China and Russia are restricting their exports,” he said on Bernama TV’s Bernama World programme entitled ‘The Impact of the Middle East Conflict on Global Agriculture’.
McGill said that oil palm, while a heavy user of fertilisers, uses a lot of potash and not nitrogen-based fertilisers.
He added that many big producers tend to pre-buy fertilisers, with up to 60-70% of the required volume already secured.
“We have to see whether the suppliers will honour the contracts with the volatility of prices, but in effect, they have already pre-bought,” he said.
McGill said even if there is a cutback on fertilisers today, it will take a fairly long time, up to two years, to impact production.
“Palm oil can continue reasonably well, even if this (conflict) is causing big problems for the planning and decision-making. We are not going to see an immediate collapse in palm oil production,” he said. FMT
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April 03, 2026
Malaysia’s Palm Oil Sector In Advantageous Position Despite West Asia Conflict
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, March 3 (Bernama) -- Malaysia is in an extremely advantageous position as one of the world’s top palm oil exporters, continuing to supply edible oils to countries which are grappling with rising food prices and fertiliser supply disruptions due to the closure of the Strait of Hormuz.
Julian McGill, the managing director of UK-based economic advisory firm Glenauk Economics, attributed this to palm oil production being less affected by fertiliser supply disruptions due to the ongoing conflict in West Asia.
He said that oil palm, Malaysia’s most important crop, accounts for around 75 per cent of the country’s planted area and has several characteristics that put the sector in a better position.
He explained that food crops such as fruits and vegetables are heavily dependent on nitrogen-based fertilisers, of which the Gulf regions produce a quarter to a third of the global supply.
“With disruption (from the conflict), prices have shot up. The secondary effect is that countries such as China and Russia are restricting their exports,” he said on Bernama TV’s Bernama World programme entitled ‘The Impact of the West Asia Conflict on Global Agriculture’ hosted by Melissa Ong.
McGill said that oil palm, while a heavy user of fertilisers, uses a lot of potash and not nitrogen-based fertilisers.
He added that many big producers tend to pre-buy fertilisers, with up to 60-70 per cent of the required volume already secured.
“We have to see whether the suppliers will honour the contracts with the volatility of prices, but in effect, they have already pre-bought,” he said.
McGill said even if there is a cutback on fertilisers today, it will take a fairly long time, up to two years, to impact production.
“Palm oil can continue reasonably well, even if this (conflict) is causing big problems for the planning and the decision-making. We are not going to see an immediate collapse in palm oil production,” he said.
Given the supply disruption and the period of heightened tension and concern over agriculture and food production globally, McGill said Malaysia is also well positioned to export very large volumes of edible oil, thereby boosting its export income.
“This puts Malaysia in a strategically better position,” he said.
Moreover, McGill said that in times of crisis and rising energy and crude oil prices, the commodity is important as a substitute for diesel, similar to what Indonesia is doing.
“Although it is more difficult to produce biofuel in Malaysia due to higher palm oil prices and a lack of infrastructure, in theory, it can substitute for diesel.
“Nevertheless, it is a strategic crop to have,” he added.
Global impact on agriculture
Touching on the impact of the West Asia conflict on food and fertiliser supply disruptions on global agriculture, McGill said impacts are yet to be seen, but the current situation is “very tense, and people are adopting a wait-and-see attitude”.
“The reason why it’s not yet serious is that the first point is that the Gulf is not a major food-producing region. So unlike in previous crisis situations, such as the Russian invasion of Ukraine, we haven’t seen any immediate impact.
“The other is that we are coming off a period of very many record crops,” he added.
McGill also said that agriculture moves much more slowly than other industries.
“You have to follow nature with agriculture, the planting of the seasons; you plant and wait, and therefore it is an industry that rewards patience, but it is also one where we don’t see an immediate impact.
“Not like a factory where you run out of inputs, you stop immediately. What we’re seeing is concern over the next harvest, over six months from now.
“We don’t see a crisis yet, but it is very tense, and we are monitoring the situation closely, as is everyone,” he added.
-- BERNAMA
--------
Palm oil exports from Indonesia have increased by 36% since the beginning of the year
In the first two months of 2026, the country exported 4.54 million tonnes of crude and refined palm oil, a 36.3% increase compared to the same period a year earlier, Reuters reported, citing Statistics Indonesia. The total value of exported oil was $4.69 billion.
In February, Indonesia exported 2.3 million tonnes of palm oil, valued at $2.4 billion.
Export data does not include palm kernel oil, oleochemicals, and biodiesel.
It was previously reported that Malaysia’s palm oil exports increased by 42.7% in March.
Experts cite the sharp rise in tropical oils as a reason for the overall rise in prices for alternative oils amid the energy and logistics crisis in the Middle East.
As OleoScope analysts previously calculated, sunflower oil export prices increased by more than 20% over the year, and palm oil was the only product that was cheaper by mid-year than at the beginning (a low of $963 in May). By December, the price had recovered to $1,018, but overall, the year closed in the red, with prices down 5.6% compared to January. UKR Agraconsult
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Indonesia’s deforestation surges 66% in 2025, reversing years of decline
Based on satellite analysis, Auriga estimates that 433,751 hectares (1.1 million acres) of forest, an area more than twice the size of London, were lost in 2025, the highest level in eight years.
Forest loss had previously fallen to a historic low in 2021, following five consecutive years of decline since 2017, driven in part by a series of forest protection policies under former President Joko Widodo. But since 2022, the trend has reversed, with deforestation rising again before spiking in 2025 across all of Indonesia’s major islands.
“The surge in deforestation in 2025 is truly distressing, taking Indonesia back to a time when it was at its highest,” said Auriga executive director Timer Manurung.
The trend stands in contrast to developments in the Amazon, where deforestation has declined for three consecutive years following renewed enforcement and federal efforts under Brazil President Luiz Inácio Lula da Silva. In 2025, deforestation in the biome fell 11.1% to 579,600 hectares (1.4 million acres), the lowest level in more than a decade.
“Brazil’s deforestation, concentrated in the Amazon, is declining. Meanwhile, Indonesia’s is increasing. So it’s possible Indonesia could become the world’s top deforester among tropical countries in 2025,” Timer said.
Auriga’s findings are broadly consistent with early signals from official data. While the government has yet to release full-year figures for 2025, available data show Indonesia lost more forest in the first nine months of the year than the annual totals for any of the first three years of this decade.
Gross deforestation in 2025 was on track to at least match 2024 levels, the highest since 2019, Forestry Minister Raja Juli Antoni told lawmakers in December 2025.
Forestry Deputy Minister Rohmat Marzuki said Auriga had presented the findings to the ministry and the government welcomed them.
“We are very open to it. We appreciate input, suggestions and even criticism from various parties,” he told Mongabay.
The implications extend beyond forest loss. Riko Wahyudi, a senior researcher at the Research Center for Climate Change at the University of Indonesia, warned that rising deforestation could derail Indonesia’s climate goals, including its target of turning the forestry and land use (FOLU) sector into a net carbon sink by 2030.
Based on official data submitted to the United Nations, emissions from the FOLU sector have exceeded the levels required to meet Indonesia’s climate targets in every year since 2019 through the latest available data in 2022. This suggests emissions reductions remain insufficient as forest loss continues.
“With increasing deforestation in 2025, it will be even more challenging,” Riko said. “Even in 2020-22, during the COVID-19 pandemic, when mobility dropped and logging slowed, we still didn’t meet our targets.” Mongabay
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Stakeholders call for investment in Ghana's palm oil industry
By Morkporkpor Anku
Accra, April 2, GNA – Dr Frederick Sarpong, a Research Scientist at the Council for Scientific and Industrial Research (CSIR), has called for coordinated financing, policy reforms and private sector investment to transform Ghana’s palm oil industry for sustainable growth.
He said Ghana’s artisanal oil palm sector was dominated by women, who constituted more than 80 per cent of the workforce and contributed about 44 per cent of national supply, despite facing major constraints.
Dr Sarpong made the call at a Development Bank Ghana (DBG) Oil Palm Financing Roundtable held in Accra on Wednesday.
The event, on the theme: “Transforming Ghana’s Palm Oil Landscape: Financing for Sustainable Growth across the Value Chain,” brought together policymakers, industry players and development partners to chart a path for the sector.
He identified low productivity due to outdated technology, seasonal production challenges, limited access to finance, and poor health and environmental conditions as key issues affecting the sector.
Expand article logo Continue reading
Dr Sarpong noted that oil extraction rates among artisanal processors ranged between six and nine per cent, far below the industrial benchmark of 18 to 25 per cent, resulting in low-quality output and reduced incomes. MSN
Malaysia’s Palm Oil Sector In Advantageous Position Despite West Asia Conflict
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, March 3 (Bernama) -- Malaysia is in an extremely advantageous position as one of the world’s top palm oil exporters, continuing to supply edible oils to countries which are grappling with rising food prices and fertiliser supply disruptions due to the closure of the Strait of Hormuz.
Julian McGill, the managing director of UK-based economic advisory firm Glenauk Economics, attributed this to palm oil production being less affected by fertiliser supply disruptions due to the ongoing conflict in West Asia.
He said that oil palm, Malaysia’s most important crop, accounts for around 75 per cent of the country’s planted area and has several characteristics that put the sector in a better position.
He explained that food crops such as fruits and vegetables are heavily dependent on nitrogen-based fertilisers, of which the Gulf regions produce a quarter to a third of the global supply.
“With disruption (from the conflict), prices have shot up. The secondary effect is that countries such as China and Russia are restricting their exports,” he said on Bernama TV’s Bernama World programme entitled ‘The Impact of the West Asia Conflict on Global Agriculture’ hosted by Melissa Ong.
McGill said that oil palm, while a heavy user of fertilisers, uses a lot of potash and not nitrogen-based fertilisers.
He added that many big producers tend to pre-buy fertilisers, with up to 60-70 per cent of the required volume already secured.
“We have to see whether the suppliers will honour the contracts with the volatility of prices, but in effect, they have already pre-bought,” he said.
McGill said even if there is a cutback on fertilisers today, it will take a fairly long time, up to two years, to impact production.
“Palm oil can continue reasonably well, even if this (conflict) is causing big problems for the planning and the decision-making. We are not going to see an immediate collapse in palm oil production,” he said.
Given the supply disruption and the period of heightened tension and concern over agriculture and food production globally, McGill said Malaysia is also well positioned to export very large volumes of edible oil, thereby boosting its export income.
“This puts Malaysia in a strategically better position,” he said.
Moreover, McGill said that in times of crisis and rising energy and crude oil prices, the commodity is important as a substitute for diesel, similar to what Indonesia is doing.
“Although it is more difficult to produce biofuel in Malaysia due to higher palm oil prices and a lack of infrastructure, in theory, it can substitute for diesel.
“Nevertheless, it is a strategic crop to have,” he added.
Global impact on agriculture
Touching on the impact of the West Asia conflict on food and fertiliser supply disruptions on global agriculture, McGill said impacts are yet to be seen, but the current situation is “very tense, and people are adopting a wait-and-see attitude”.
“The reason why it’s not yet serious is that the first point is that the Gulf is not a major food-producing region. So unlike in previous crisis situations, such as the Russian invasion of Ukraine, we haven’t seen any immediate impact.
“The other is that we are coming off a period of very many record crops,” he added.
McGill also said that agriculture moves much more slowly than other industries.
“You have to follow nature with agriculture, the planting of the seasons; you plant and wait, and therefore it is an industry that rewards patience, but it is also one where we don’t see an immediate impact.
“Not like a factory where you run out of inputs, you stop immediately. What we’re seeing is concern over the next harvest, over six months from now.
“We don’t see a crisis yet, but it is very tense, and we are monitoring the situation closely, as is everyone,” he added.
-- BERNAMA
--------
Palm oil exports from Indonesia have increased by 36% since the beginning of the year
In the first two months of 2026, the country exported 4.54 million tonnes of crude and refined palm oil, a 36.3% increase compared to the same period a year earlier, Reuters reported, citing Statistics Indonesia. The total value of exported oil was $4.69 billion.
In February, Indonesia exported 2.3 million tonnes of palm oil, valued at $2.4 billion.
Export data does not include palm kernel oil, oleochemicals, and biodiesel.
It was previously reported that Malaysia’s palm oil exports increased by 42.7% in March.
Experts cite the sharp rise in tropical oils as a reason for the overall rise in prices for alternative oils amid the energy and logistics crisis in the Middle East.
As OleoScope analysts previously calculated, sunflower oil export prices increased by more than 20% over the year, and palm oil was the only product that was cheaper by mid-year than at the beginning (a low of $963 in May). By December, the price had recovered to $1,018, but overall, the year closed in the red, with prices down 5.6% compared to January. UKR Agraconsult
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Indonesia’s deforestation surges 66% in 2025, reversing years of decline
- New satellite data show that deforestation in Indonesia surged in 2025, up 66% from the previous year, marking a sharp reversal after several years of decline.
- The implications extend beyond forest loss, as rising deforestation could derail Indonesia’s climate goals, including its target of turning the forestry and land use sector into a net carbon sink by 2030.
- NGO Auriga Nusantara points to policy decisions under both the current and former administrations; at the same time, government-backed projects have been allowed to expand into forest areas, often without adequate spatial planning.
Based on satellite analysis, Auriga estimates that 433,751 hectares (1.1 million acres) of forest, an area more than twice the size of London, were lost in 2025, the highest level in eight years.
Forest loss had previously fallen to a historic low in 2021, following five consecutive years of decline since 2017, driven in part by a series of forest protection policies under former President Joko Widodo. But since 2022, the trend has reversed, with deforestation rising again before spiking in 2025 across all of Indonesia’s major islands.
“The surge in deforestation in 2025 is truly distressing, taking Indonesia back to a time when it was at its highest,” said Auriga executive director Timer Manurung.
The trend stands in contrast to developments in the Amazon, where deforestation has declined for three consecutive years following renewed enforcement and federal efforts under Brazil President Luiz Inácio Lula da Silva. In 2025, deforestation in the biome fell 11.1% to 579,600 hectares (1.4 million acres), the lowest level in more than a decade.
“Brazil’s deforestation, concentrated in the Amazon, is declining. Meanwhile, Indonesia’s is increasing. So it’s possible Indonesia could become the world’s top deforester among tropical countries in 2025,” Timer said.
Auriga’s findings are broadly consistent with early signals from official data. While the government has yet to release full-year figures for 2025, available data show Indonesia lost more forest in the first nine months of the year than the annual totals for any of the first three years of this decade.
Gross deforestation in 2025 was on track to at least match 2024 levels, the highest since 2019, Forestry Minister Raja Juli Antoni told lawmakers in December 2025.
Forestry Deputy Minister Rohmat Marzuki said Auriga had presented the findings to the ministry and the government welcomed them.
“We are very open to it. We appreciate input, suggestions and even criticism from various parties,” he told Mongabay.
The implications extend beyond forest loss. Riko Wahyudi, a senior researcher at the Research Center for Climate Change at the University of Indonesia, warned that rising deforestation could derail Indonesia’s climate goals, including its target of turning the forestry and land use (FOLU) sector into a net carbon sink by 2030.
Based on official data submitted to the United Nations, emissions from the FOLU sector have exceeded the levels required to meet Indonesia’s climate targets in every year since 2019 through the latest available data in 2022. This suggests emissions reductions remain insufficient as forest loss continues.
“With increasing deforestation in 2025, it will be even more challenging,” Riko said. “Even in 2020-22, during the COVID-19 pandemic, when mobility dropped and logging slowed, we still didn’t meet our targets.” Mongabay
--------
Stakeholders call for investment in Ghana's palm oil industry
By Morkporkpor Anku
Accra, April 2, GNA – Dr Frederick Sarpong, a Research Scientist at the Council for Scientific and Industrial Research (CSIR), has called for coordinated financing, policy reforms and private sector investment to transform Ghana’s palm oil industry for sustainable growth.
He said Ghana’s artisanal oil palm sector was dominated by women, who constituted more than 80 per cent of the workforce and contributed about 44 per cent of national supply, despite facing major constraints.
Dr Sarpong made the call at a Development Bank Ghana (DBG) Oil Palm Financing Roundtable held in Accra on Wednesday.
The event, on the theme: “Transforming Ghana’s Palm Oil Landscape: Financing for Sustainable Growth across the Value Chain,” brought together policymakers, industry players and development partners to chart a path for the sector.
He identified low productivity due to outdated technology, seasonal production challenges, limited access to finance, and poor health and environmental conditions as key issues affecting the sector.
Expand article logo Continue reading
Dr Sarpong noted that oil extraction rates among artisanal processors ranged between six and nine per cent, far below the industrial benchmark of 18 to 25 per cent, resulting in low-quality output and reduced incomes. MSN
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April 02, 2026
Indonesia Adjusts Export Prices for Strategic Commodities in April 2026
Key Points
The Trade Ministry set the CPO reference price at USD 989.63 per metric ton (MT) for the April 1–30 period, up 5.41 percent from USD 938.87/MT in March. The reference price serves as the basis for calculating export duties and levies imposed on the commodity.
Trade Ministry Foreign Trade Director General Tommy Andana said the increase was driven by demand outpacing supply due to declining production and rising crude oil prices linked to geopolitical tensions in the Middle East.
“In addition, crude oil prices have increased due to the geopolitical situation in the Middle East,” Tommy said in a statement issued on Tuesday, March 31, 2026, as quoted on the ministry's official website.
Based on prevailing regulations, the export duty for CPO in April is set at USD 148/MT, in line with Finance Ministry Regulation No. 38/2024 and its amendment under Regulation No. 68/2025. VOI
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Nextchem awarded SAF contract for Sumatra project
Nextchem, through its subsidiary KT Tech, has been awarded a contract for early engineering works and proprietary equipment supply for a SAF plant under development in North Sumatra Province, Indonesia.
The plant is designed to produce 60,000 tonnes per year of SAF with high efficiency using palm oil mill effluent (POME) as primary feedstock, as well as certified used cooking oil enabling the valorization of locally available resources and supporting the deployment of economically viable SAF solutions.
The project will leverage Nextchem’s proprietary NX PTU™ and NX SAF™ BIO technologies, which have already been licensed for the initiative. The early engineering works will support the Final Investment Decision for the project, which represents a concrete step towards the adoption of advanced, low‑carbon technologies in the aviation sector.
Fabio Fritelli, managing director of Nextchem, commented: “This award further confirms the strong market interest in our proprietary SAF technologies. This project represents a tangible opportunity to support the decarbonisation of the aviation sector in Southeast Asia, while reinforcing our positioning as a global technology provider for sustainable fuels.” Biofuels News
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PCE unveils plans to upgrade biodiesel production to meet demand for B7 and B20, confident in strong crude palm oil supply.
The company showcased its B100 production capacity, exceeding 40 million liters per month, to meet market demand projected to reach 8 million liters per day. Analysis indicated sufficient domestic crude palm oil stocks. The focus is on leveraging export revenue to boost domestic production and support energy stability. The company highlighted its comprehensive logistics network, including a fleet of ships and trucks, strategically linking the southern region to a distribution hub.
1 April 2569 – Petchsrivichai Enterprise Public Company Limited (PCE) Announcing its readiness to manage the entire palm oil supply chain in support of government policy promoting biodiesel blends from B7 to B20, emphasizing sufficient raw material availability and production capacity to meet the needs of major oil traders nationwide.
Mr. Pornpipat Prasitphuphol, Deputy Managing Director, Strategy and Organizational Development, PCE. Statistical data reveals that, while Thailand previously used a B5 blend throughout 2568, consuming approximately 0.9 million tons of crude palm oil (CPO) annually, adjusting the base diesel fuel to B7 and promoting B20 will increase the demand for biodiesel to 6.0-8.0 million liters per day, requiring an increase in crude palm oil to 2.0-2.2 million tons per year.
In terms of raw material security, PCE assesses that Thailand has the potential to meet this increased demand without affecting household consumption, as palm oil production is projected to reach 4 million tons in 2569. This would be sufficient to immediately process the export surplus of over 1.2 million tons annually into B100 biodiesel.
“Thailand can immediately convert the 1.2 million tons of crude palm oil that is previously exported annually into B100 biodiesel production without affecting domestic consumption. This would also help the government efficiently reduce its budget for diesel price subsidies.” Mr. Pornpipat Prasitphuphol
Currently, the PCE Group, through New Biodiesel Co., Ltd., has upgraded its biodiesel production capacity to 1.3 million liters per day, or approximately 40 million liters per month.
It is supported by infrastructure from upstream to downstream, comprising:
Cargill strengthens global specialty fats portfolio with expansion of Port Klang, Malaysia facility
Enabling innovative solutions for chocolate, bakery, and dairy customers
Cargill announced the expansion of its edible oil plant in Port Klang, Malaysia with a new specialty fats production line. The multi-million-dollar investment will broaden Cargill’s global portfolio with more comprehensive specialty fat products and strengthen its overall food solutions offerings, enabling customers to develop chocolate confectionery, bakery and dairy products tailored to diverse market and consumer needs.
The expanded facility in Port Klang enables advanced palm oil processes, producing a broad and versatile range of cocoa butter equivalents, low-trans fatty acid cocoa butter replacers, and specialty fats for chocolate confectionery, frying, baking or fillings applications.
Asia Pacific is the fastest-growing region in the global chocolate market, with its share projected to rise from 19.6% in 2025 to 22.0% by 2030, while Europe remains the largest market and North America continues steady growth; the Middle East is also expanding significantly. This growth is supported by rising incomes, urbanization, and evolving consumer preferences, driving demand for chocolate as well as bakery products such as pastries and baked goods¹.
At the same time, consumers are increasingly paying closer attention to ingredients and nutritional profiles, while continuing to expect high-quality taste and texture in chocolate and bakery products². As delivery and takeaway grow, manufacturers and foodservice operators are looking for solutions that help products, from fried items to baked goods, maintain taste and texture from kitchen to consumer, with consistent performance during preparation, holding and transport.
““The new production line at our Port Klang facility supports customers with reliable access to high-quality, versatile specialty fats. As food producers navigate evolving cocoa and ingredient markets, our expanded specialty fats portfolio provides an alternative solution with greater flexibility to optimize formulations while maintaining consistent taste and texture. This strengthens our ability to work with chocolate, confectionery, bakery and dairy customers as a trusted supplier and innovation partner,” said Kashan Rashid, Vice President and Managing Director, Cargill’s Food Southeast Asia, Australia and New Zealand.
The plant expansion enhances Cargill’s specialty fats portfolio with a broader range of solutions under its existing brands: Web Wire
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Indonesia Adjusts Export Prices for Strategic Commodities in April 2026
Key Points
- The Indonesian Ministry of Trade has adjusted reference prices for several strategic export commodities for April 2026.
- Reference prices for April 2026 include higher CPO, lower cocoa beans, and stable pine resin.
- The new reference prices for CPO, cocoa beans, leather, wood, and pine resin are set under Minister of Trade Decree No. 560/2026.
The Trade Ministry set the CPO reference price at USD 989.63 per metric ton (MT) for the April 1–30 period, up 5.41 percent from USD 938.87/MT in March. The reference price serves as the basis for calculating export duties and levies imposed on the commodity.
Trade Ministry Foreign Trade Director General Tommy Andana said the increase was driven by demand outpacing supply due to declining production and rising crude oil prices linked to geopolitical tensions in the Middle East.
“In addition, crude oil prices have increased due to the geopolitical situation in the Middle East,” Tommy said in a statement issued on Tuesday, March 31, 2026, as quoted on the ministry's official website.
Based on prevailing regulations, the export duty for CPO in April is set at USD 148/MT, in line with Finance Ministry Regulation No. 38/2024 and its amendment under Regulation No. 68/2025. VOI
--------
Nextchem awarded SAF contract for Sumatra project
Nextchem, through its subsidiary KT Tech, has been awarded a contract for early engineering works and proprietary equipment supply for a SAF plant under development in North Sumatra Province, Indonesia.
The plant is designed to produce 60,000 tonnes per year of SAF with high efficiency using palm oil mill effluent (POME) as primary feedstock, as well as certified used cooking oil enabling the valorization of locally available resources and supporting the deployment of economically viable SAF solutions.
The project will leverage Nextchem’s proprietary NX PTU™ and NX SAF™ BIO technologies, which have already been licensed for the initiative. The early engineering works will support the Final Investment Decision for the project, which represents a concrete step towards the adoption of advanced, low‑carbon technologies in the aviation sector.
Fabio Fritelli, managing director of Nextchem, commented: “This award further confirms the strong market interest in our proprietary SAF technologies. This project represents a tangible opportunity to support the decarbonisation of the aviation sector in Southeast Asia, while reinforcing our positioning as a global technology provider for sustainable fuels.” Biofuels News
--------
PCE unveils plans to upgrade biodiesel production to meet demand for B7 and B20, confident in strong crude palm oil supply.
The company showcased its B100 production capacity, exceeding 40 million liters per month, to meet market demand projected to reach 8 million liters per day. Analysis indicated sufficient domestic crude palm oil stocks. The focus is on leveraging export revenue to boost domestic production and support energy stability. The company highlighted its comprehensive logistics network, including a fleet of ships and trucks, strategically linking the southern region to a distribution hub.
1 April 2569 – Petchsrivichai Enterprise Public Company Limited (PCE) Announcing its readiness to manage the entire palm oil supply chain in support of government policy promoting biodiesel blends from B7 to B20, emphasizing sufficient raw material availability and production capacity to meet the needs of major oil traders nationwide.
Mr. Pornpipat Prasitphuphol, Deputy Managing Director, Strategy and Organizational Development, PCE. Statistical data reveals that, while Thailand previously used a B5 blend throughout 2568, consuming approximately 0.9 million tons of crude palm oil (CPO) annually, adjusting the base diesel fuel to B7 and promoting B20 will increase the demand for biodiesel to 6.0-8.0 million liters per day, requiring an increase in crude palm oil to 2.0-2.2 million tons per year.
In terms of raw material security, PCE assesses that Thailand has the potential to meet this increased demand without affecting household consumption, as palm oil production is projected to reach 4 million tons in 2569. This would be sufficient to immediately process the export surplus of over 1.2 million tons annually into B100 biodiesel.
“Thailand can immediately convert the 1.2 million tons of crude palm oil that is previously exported annually into B100 biodiesel production without affecting domestic consumption. This would also help the government efficiently reduce its budget for diesel price subsidies.” Mr. Pornpipat Prasitphuphol
Currently, the PCE Group, through New Biodiesel Co., Ltd., has upgraded its biodiesel production capacity to 1.3 million liters per day, or approximately 40 million liters per month.
It is supported by infrastructure from upstream to downstream, comprising:
- Crude palm oil extraction plant: Maximum production capacity of 3,600 tons per day to continuously supply raw materials for the B100 production process.
- Storage and warehousing system: Palm oil and fuel storage facilities totaling 240,000 tons, strategically located in Surat Thani Province and Bang Pakong District, Chachoengsao Province.
- Logistics network: A fleet of 13 ships and over 160 trucks for transporting palm oil products and general cargo, to enhance delivery efficiency to trading partners. Money and BankingTH
Cargill strengthens global specialty fats portfolio with expansion of Port Klang, Malaysia facility
Enabling innovative solutions for chocolate, bakery, and dairy customers
Cargill announced the expansion of its edible oil plant in Port Klang, Malaysia with a new specialty fats production line. The multi-million-dollar investment will broaden Cargill’s global portfolio with more comprehensive specialty fat products and strengthen its overall food solutions offerings, enabling customers to develop chocolate confectionery, bakery and dairy products tailored to diverse market and consumer needs.
The expanded facility in Port Klang enables advanced palm oil processes, producing a broad and versatile range of cocoa butter equivalents, low-trans fatty acid cocoa butter replacers, and specialty fats for chocolate confectionery, frying, baking or fillings applications.
Asia Pacific is the fastest-growing region in the global chocolate market, with its share projected to rise from 19.6% in 2025 to 22.0% by 2030, while Europe remains the largest market and North America continues steady growth; the Middle East is also expanding significantly. This growth is supported by rising incomes, urbanization, and evolving consumer preferences, driving demand for chocolate as well as bakery products such as pastries and baked goods¹.
At the same time, consumers are increasingly paying closer attention to ingredients and nutritional profiles, while continuing to expect high-quality taste and texture in chocolate and bakery products². As delivery and takeaway grow, manufacturers and foodservice operators are looking for solutions that help products, from fried items to baked goods, maintain taste and texture from kitchen to consumer, with consistent performance during preparation, holding and transport.
““The new production line at our Port Klang facility supports customers with reliable access to high-quality, versatile specialty fats. As food producers navigate evolving cocoa and ingredient markets, our expanded specialty fats portfolio provides an alternative solution with greater flexibility to optimize formulations while maintaining consistent taste and texture. This strengthens our ability to work with chocolate, confectionery, bakery and dairy customers as a trusted supplier and innovation partner,” said Kashan Rashid, Vice President and Managing Director, Cargill’s Food Southeast Asia, Australia and New Zealand.
The plant expansion enhances Cargill’s specialty fats portfolio with a broader range of solutions under its existing brands: Web Wire
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April 01, 2026
Indonesia's B50 Pivot Shows War Is Stoking Global Biofuel Demand
Indonesia’s abrupt pivot to expand its biodiesel mandate is the latest sign of how the war in Iran is reshaping energy policy, tightening global vegetable oil supplies as more gets funneled into fuel.
(Bloomberg) — Indonesia’s abrupt pivot to expand its biodiesel mandate is the latest sign of how the war in Iran is reshaping energy policy, tightening global vegetable oil supplies as more gets funneled into fuel.
That’s set to shrink the amount of palm oil the country has available to export and comes as other nations are ramping up biofuel mandates of their own. Benchmark palm oil futures jumped as much as 1.9% in Kuala Lumpur on Wednesday, reaching the highest since 2024, before paring gains.
Indonesia’s move marks a sharp shift from January, when officials said the nation would keep the current mandatory blending ratio of 40% through 2026 to allow policymakers more time to build infrastructure and calculate the costs of transitioning to the higher mandate.
“The renewed push is likely driven by concerns over global energy supply disruptions amid the US-Israel war with Iran, high crude oil prices pushing gasoil to trade at a premium to palm oil, and Indonesia’s efforts to strengthen energy security,” according to Ivy Ng, head of Malaysia research and agribusiness at CIMB Securities.
The war has forced policymakers worldwide to shield economies from rising fuel costs and supply shortages, with some accelerating alternative energy programs. Thailand said in March it will increase its biofuel blend to 7%, from 5% currently, in a bid to cut crude oil imports. The US last week also unveiled long-awaited blending rules that will require refiners to mix a record amount of biofuels into conventional diesel and gasoline this year.
The world’s top palm oil producer will implement its B50 program — an ambitious target to boost the level of biodiesel blended in its fuel to 50% — starting from July 1, Airlangga Hartarto, coordinating minister for economic affairs announced late Tuesday. The move is part of efforts to mitigate energy supply disruptions wrought by the conflict, with Airlangga saying it could reduce fossil fuel consumption by 4 million kiloliters annually.
While the shifts could aid energy costs for consumers, they risk stoking food inflation in tandem, with cooking oils a key part of global diets. A monthly United Nations index of vegetable oil prices reached the highest since 2022 in February.
The higher mandate is a “structural positive” for crude palm oil prices, potentially adding as much as 4 million tons of demand a year and restricting export availability, Ng said in a note. CIMB raised its 2026 average price forecast for the oil to 4,400 ringgit ($1,091) a ton from 4,000 ringgit, with potential El Nino weather impacts later this year also further constraining output.
Still, Indonesia has yet to release further details of how the B50 will be implemented so quickly. An official at the energy ministry had recently said road tests on vehicles, trains and agricultural machinery were still underway. Soaring costs for methanol due to the war in Iran, an alcohol that’s key in biodiesel production, could also prove a headwind.
“Given the higher methanol prices now, the government may need to change the pricing formula for biodiesel to incentivise players to increase production,” RHB Investment Bank analyst Hoe Lee Leng said in a note. Bloomberg
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Indonesia to Lift Palm Oil Share in Biofuels to 50% in 2026 to Cut Fuel Import Costs
The plan, which had been raised earlier this month by the country’s deputy energy minister, had initially been shelved in January for technical and financial reasons. While the president did not detail the reasons behind the reversal, the decision comes against a backdrop of rising global oil prices.
Following Israeli and U.S. strikes on Iran on February 28 and the closure of the Strait of Hormuz—which handles about a quarter of global seaborne oil trade—oil prices climbed above $100 per barrel, creating pressure for importing countries.
For Indonesia, the world’s largest producer and exporter of palm oil, increasing domestic use of the commodity is expected to help reduce its fuel import bill.
According to the national statistics agency (BPS), Indonesia imported 37.75 million tons of petroleum products in 2025, worth $23.46 billion—about 10% of its total goods imports for the year.
Implications for the market
Authorities have not yet provided a detailed timeline for implementing the B50 program. However, the Indonesian Biofuel Producers Association (APROBI) previously said that road tests for palm-based B50 biodiesel would not be completed before June or July, the initial deadline set by the energy ministry.
The move is expected to further strengthen the country’s biodiesel industry. According to the U.S. Department of Agriculture (USDA), the sector consumed 13.5 million tons of palm oil in the 2023/2024 season, making it effectively the second-largest global consumer of the commodity.
Markets are likely to watch developments closely. Increased domestic use could reduce export availability and support global palm oil prices on the Bursa Malaysia Derivatives Exchange. Such a trend could also narrow the price gap with soybean oil, its main competitor in the global vegetable oil market. Ecofin Agency
--------
Indonesia’s push for long-delayed B50 mandate set to boost palm oil prices
KUALA LUMPUR (March 31): A roll-out of the long-delayed B50 biodiesel mandate in Indonesia this year will be positive for palm oil prices and producers, analysts said.
The mandate will be positive for prices as it could potentially provide additional demand of up to four million tonnes of palm oil annually and tighten exportable supply, CIMB Securities said in a note. However, details and the scope of implementation plans remain unclear, the house flagged.
“The planned B50 roll-out is a structural positive for crude palm oil prices,” CIMB Securities said and raised its forecast to RM4,400 per tonne this year.
On March 30, President Prabowo Subianto said that Indonesia will proceed with its plan this year to introduce B50 biodiesel that requires a 50:50 mix of palm-based methyl ester and petroleum diesel.
The news sent prices of the edible oil used in everything from diesel to lipstick to its highest in 15 months. Palm oil prices have soared nearly 19% so far this year, tracking strong gains of crude oil following the outbreak of the Iran war that has disrupted flow of major commodities.
Higher prices are positive for pure upstream planters, although this may be partially offset by higher fuel and fertiliser costs, CIMB Securities said and kept its 'neutral' sector call.
Apex Securities, meanwhile, upgraded the Malaysian plantation sector to 'overweight' after raising its palm oil average price projection to RM4,400 per tonne for this year, to also account for the protracted Middle East tensions and elevated energy prices.
Elevated prices of fertilisers could introduce output yield risk if Malaysian palm oil planters delay or trim usage, the research house cautioned.
Still, companies under coverage, including the world’s largest producer by acreage SD Guthrie Bhd (KL:SDG) and Kuala Lumpur Kepong Bhd (KL:KLK), have largely secured fertiliser supply near the start of the year, Apex Securities noted. The EdgeMY
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The Trump Administration’s New Biofuels Targets Threaten Carbon-Rich Rainforests
The U.S. doesn’t have enough bio-based diesel to meet the administration’s new mandate, so blenders will have to import yet more foreign crop-based oils.
President Donald Trump stood on the Truman Balcony at the White House during the “Great American Agriculture Celebration” last week and announced what he called a “historic” boost to the nation’s farmers.
The Environmental Protection Agency, Trump said, would require the highest-ever volume of crop-based biofuels to be blended into the nation’s gasoline supply, a move the administration promises will bring jobs and cashflow to an agriculture industry feeling the twin punches of the president’s tariffs and higher fertilizer prices linked to the war in Iran. Trump called himself a “true friend and champion” of the country’s farmers, a key political constituency that he is again actively and festively courting.
But some analysts and researchers say the administration’s plan has a critical flaw: The U.S. doesn’t produce enough vegetable oil to satisfy the demands of the new blending targets. That means it will have to import more foreign vegetable oil, which will imperil climate-critical tropical forests thousands of miles away as they’re cleared to grow more oil crops.
Beyond these negative climate impacts, the new targets will actually drive diesel prices higher, by 30 cents per gallon this year and 36 cents per gallon in 2027, according to the EPA.
“This particular rule, by EPA’s own analysis, will cost about $20 billion over the two years that it’s in effect,” said Dan Lashof, a senior fellow at the World Resources Institute. “And rather than having any environmental benefits, it will actually drive deforestation and increased emissions of heat-trapping carbon dioxide.”
The world’s vegetable oil markets are highly interlinked. If vegetable oil is diverted from food to fuel uses, oil for food will have to come from somewhere else, potentially regions where carbon-rich tropical forests are cleared to produce soybeans and palm oil.
Paul Winters, a spokesman for Clean Fuels Alliance America, the country’s biggest biodiesel trade group, said the EPA examined Martin’s claim and “concluded that North American feedstock supplies are not a limiting factor in meeting the final RFS volumes.”
“The strong U.S. market for biodiesel and renewable diesel is needed to ensure that farming – production of food, animal feed, and other agricultural goods – remains economically viable,” Winters added.
U.S. producers are currently sitting on a glut of unsold soybeans—largely because China, the largest buyer, has turned to Latin America in response to Trump’s trade tariffs last year. But it will take years to ramp up production capacity for turning those soybeans into oil.
Palm oil, which is produced largely in Malaysia and Indonesia and used mostly for food and cosmetics, is not eligible under the U.S. Renewable Fuel Standard or in the European Union because its cultivation has led to so much deforestation.
“But because the rule would drive increased demand for soybean oil, it will drive up prices for all vegetable oils, which are highly correlated,” Lashof said. “The problem is that, in the meantime, other vegetable oils are being used to make biofuel, and then palm oil is used to backfill that oil in the food markets. … They’re very tightly linked as substitutes in the international market.” Inside Climate News
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Eni’s African biofuels project reaps a bitter harvest for castor oil farmers
Farmers say the Italian energy giant’s green fuel drive has left them stranded
The Italian agent brought a flurry of excitement when he arrived in Kilifi County with news of a wonder-crop: castor.
Diego Barili was an intermediary for Eni, Italy’s state-owned energy giant. If farmers in Kilifi, north of Kenya’s port city of Mombasa, switched to growing castor, he said, he would pay life-changing cash for plants that Eni would turn into green fuel for customers including BMW, EasyJet and Ryanair.
Katsele Shauri Mitsanze was one of many who jumped at the opportunity. She planted castor across her smallholding, replacing maize she and her seven children relied on for food. They harvested the inedible castor beans and waited.
But Barili’s agents did not return.
“The officers said they would come and collect them but they never came,” said Mitsanze, 40. “My family really suffered because of the hunger.”
Through intermediaries like Barili, Eni has handed out seeds to more than a hundred thousand farmers across Kenya for a flagship project backed by the Italian government.
Italy’s populist administration hopes its Mattei Plan—named after Eni’s founder—will reset relations with Africa through investment and curb migration. Eni’s initiative is also important for the European Union, which has made biofuels crucial to its goal of cutting fossil fuel use.
Eni says its Kenya programme is “designed to avoid negative impact on food production and guarantee food security for farmers” and is having a “positive impact on local communities”.
A joint SourceMaterial and Politico investigation, based on interviews with 44 farmers across four Kenyan counties, as well as biofuel experts, activists and lawyers, raises doubts about those claims.
Biofuels bet
The European Union is betting big on the so-called bioeconomy. In November it unveiled plans to replace petrochemicals in products like plastics, building materials, chemicals and fibres with biomass—organic materials from trees and crops.
Biofuels are also a core part of the bloc’s green transition plan. Transport, particularly air travel, is among the largest causes of pollution in the EU and one of the toughest sectors to decarbonise. Brussels has set targets requiring airports to make at least 70 per cent of aviation fuel ‘sustainable’ by 2050.
Oil producers and car manufacturers have lobbied for biofuels: using them means holding onto petrol-burning engines rather than switching to electric power. Earlier this month the EU’s agriculture chief, Christophe Hansen, called for more flexible rules to stimulate biofuel production.
The EU’s biofuels push is coming at the expense of African farmers as there are insufficient mechanisms in place to protect them, said Pax Butchart, a campaigner at Biofuelwatch, a non-profit group.
“It’s a mistake politically to bet on biofuels. The traceability standards are just not there yet,” Butchart said. “Their ability to reduce carbon emissions is very suspect because of that.”
The EU is “working on an improvement of the system of sustainable certification”, a European Commission spokeswoman said.
‘Selling hope’ Read more at Source Material
Indonesia's B50 Pivot Shows War Is Stoking Global Biofuel Demand
Indonesia’s abrupt pivot to expand its biodiesel mandate is the latest sign of how the war in Iran is reshaping energy policy, tightening global vegetable oil supplies as more gets funneled into fuel.
(Bloomberg) — Indonesia’s abrupt pivot to expand its biodiesel mandate is the latest sign of how the war in Iran is reshaping energy policy, tightening global vegetable oil supplies as more gets funneled into fuel.
That’s set to shrink the amount of palm oil the country has available to export and comes as other nations are ramping up biofuel mandates of their own. Benchmark palm oil futures jumped as much as 1.9% in Kuala Lumpur on Wednesday, reaching the highest since 2024, before paring gains.
Indonesia’s move marks a sharp shift from January, when officials said the nation would keep the current mandatory blending ratio of 40% through 2026 to allow policymakers more time to build infrastructure and calculate the costs of transitioning to the higher mandate.
“The renewed push is likely driven by concerns over global energy supply disruptions amid the US-Israel war with Iran, high crude oil prices pushing gasoil to trade at a premium to palm oil, and Indonesia’s efforts to strengthen energy security,” according to Ivy Ng, head of Malaysia research and agribusiness at CIMB Securities.
The war has forced policymakers worldwide to shield economies from rising fuel costs and supply shortages, with some accelerating alternative energy programs. Thailand said in March it will increase its biofuel blend to 7%, from 5% currently, in a bid to cut crude oil imports. The US last week also unveiled long-awaited blending rules that will require refiners to mix a record amount of biofuels into conventional diesel and gasoline this year.
The world’s top palm oil producer will implement its B50 program — an ambitious target to boost the level of biodiesel blended in its fuel to 50% — starting from July 1, Airlangga Hartarto, coordinating minister for economic affairs announced late Tuesday. The move is part of efforts to mitigate energy supply disruptions wrought by the conflict, with Airlangga saying it could reduce fossil fuel consumption by 4 million kiloliters annually.
While the shifts could aid energy costs for consumers, they risk stoking food inflation in tandem, with cooking oils a key part of global diets. A monthly United Nations index of vegetable oil prices reached the highest since 2022 in February.
The higher mandate is a “structural positive” for crude palm oil prices, potentially adding as much as 4 million tons of demand a year and restricting export availability, Ng said in a note. CIMB raised its 2026 average price forecast for the oil to 4,400 ringgit ($1,091) a ton from 4,000 ringgit, with potential El Nino weather impacts later this year also further constraining output.
Still, Indonesia has yet to release further details of how the B50 will be implemented so quickly. An official at the energy ministry had recently said road tests on vehicles, trains and agricultural machinery were still underway. Soaring costs for methanol due to the war in Iran, an alcohol that’s key in biodiesel production, could also prove a headwind.
“Given the higher methanol prices now, the government may need to change the pricing formula for biodiesel to incentivise players to increase production,” RHB Investment Bank analyst Hoe Lee Leng said in a note. Bloomberg
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Indonesia to Lift Palm Oil Share in Biofuels to 50% in 2026 to Cut Fuel Import Costs
- Indonesia plans to raise palm-based biodiesel blend to 50% in 2026
- Move linked to rising oil prices and import cost pressures
- Policy could tighten global palm oil supply and support prices
The plan, which had been raised earlier this month by the country’s deputy energy minister, had initially been shelved in January for technical and financial reasons. While the president did not detail the reasons behind the reversal, the decision comes against a backdrop of rising global oil prices.
Following Israeli and U.S. strikes on Iran on February 28 and the closure of the Strait of Hormuz—which handles about a quarter of global seaborne oil trade—oil prices climbed above $100 per barrel, creating pressure for importing countries.
For Indonesia, the world’s largest producer and exporter of palm oil, increasing domestic use of the commodity is expected to help reduce its fuel import bill.
According to the national statistics agency (BPS), Indonesia imported 37.75 million tons of petroleum products in 2025, worth $23.46 billion—about 10% of its total goods imports for the year.
Implications for the market
Authorities have not yet provided a detailed timeline for implementing the B50 program. However, the Indonesian Biofuel Producers Association (APROBI) previously said that road tests for palm-based B50 biodiesel would not be completed before June or July, the initial deadline set by the energy ministry.
The move is expected to further strengthen the country’s biodiesel industry. According to the U.S. Department of Agriculture (USDA), the sector consumed 13.5 million tons of palm oil in the 2023/2024 season, making it effectively the second-largest global consumer of the commodity.
Markets are likely to watch developments closely. Increased domestic use could reduce export availability and support global palm oil prices on the Bursa Malaysia Derivatives Exchange. Such a trend could also narrow the price gap with soybean oil, its main competitor in the global vegetable oil market. Ecofin Agency
--------
Indonesia’s push for long-delayed B50 mandate set to boost palm oil prices
KUALA LUMPUR (March 31): A roll-out of the long-delayed B50 biodiesel mandate in Indonesia this year will be positive for palm oil prices and producers, analysts said.
The mandate will be positive for prices as it could potentially provide additional demand of up to four million tonnes of palm oil annually and tighten exportable supply, CIMB Securities said in a note. However, details and the scope of implementation plans remain unclear, the house flagged.
“The planned B50 roll-out is a structural positive for crude palm oil prices,” CIMB Securities said and raised its forecast to RM4,400 per tonne this year.
On March 30, President Prabowo Subianto said that Indonesia will proceed with its plan this year to introduce B50 biodiesel that requires a 50:50 mix of palm-based methyl ester and petroleum diesel.
The news sent prices of the edible oil used in everything from diesel to lipstick to its highest in 15 months. Palm oil prices have soared nearly 19% so far this year, tracking strong gains of crude oil following the outbreak of the Iran war that has disrupted flow of major commodities.
Higher prices are positive for pure upstream planters, although this may be partially offset by higher fuel and fertiliser costs, CIMB Securities said and kept its 'neutral' sector call.
Apex Securities, meanwhile, upgraded the Malaysian plantation sector to 'overweight' after raising its palm oil average price projection to RM4,400 per tonne for this year, to also account for the protracted Middle East tensions and elevated energy prices.
Elevated prices of fertilisers could introduce output yield risk if Malaysian palm oil planters delay or trim usage, the research house cautioned.
Still, companies under coverage, including the world’s largest producer by acreage SD Guthrie Bhd (KL:SDG) and Kuala Lumpur Kepong Bhd (KL:KLK), have largely secured fertiliser supply near the start of the year, Apex Securities noted. The EdgeMY
--------
The Trump Administration’s New Biofuels Targets Threaten Carbon-Rich Rainforests
The U.S. doesn’t have enough bio-based diesel to meet the administration’s new mandate, so blenders will have to import yet more foreign crop-based oils.
President Donald Trump stood on the Truman Balcony at the White House during the “Great American Agriculture Celebration” last week and announced what he called a “historic” boost to the nation’s farmers.
The Environmental Protection Agency, Trump said, would require the highest-ever volume of crop-based biofuels to be blended into the nation’s gasoline supply, a move the administration promises will bring jobs and cashflow to an agriculture industry feeling the twin punches of the president’s tariffs and higher fertilizer prices linked to the war in Iran. Trump called himself a “true friend and champion” of the country’s farmers, a key political constituency that he is again actively and festively courting.
But some analysts and researchers say the administration’s plan has a critical flaw: The U.S. doesn’t produce enough vegetable oil to satisfy the demands of the new blending targets. That means it will have to import more foreign vegetable oil, which will imperil climate-critical tropical forests thousands of miles away as they’re cleared to grow more oil crops.
Beyond these negative climate impacts, the new targets will actually drive diesel prices higher, by 30 cents per gallon this year and 36 cents per gallon in 2027, according to the EPA.
“This particular rule, by EPA’s own analysis, will cost about $20 billion over the two years that it’s in effect,” said Dan Lashof, a senior fellow at the World Resources Institute. “And rather than having any environmental benefits, it will actually drive deforestation and increased emissions of heat-trapping carbon dioxide.”
The world’s vegetable oil markets are highly interlinked. If vegetable oil is diverted from food to fuel uses, oil for food will have to come from somewhere else, potentially regions where carbon-rich tropical forests are cleared to produce soybeans and palm oil.
Paul Winters, a spokesman for Clean Fuels Alliance America, the country’s biggest biodiesel trade group, said the EPA examined Martin’s claim and “concluded that North American feedstock supplies are not a limiting factor in meeting the final RFS volumes.”
“The strong U.S. market for biodiesel and renewable diesel is needed to ensure that farming – production of food, animal feed, and other agricultural goods – remains economically viable,” Winters added.
U.S. producers are currently sitting on a glut of unsold soybeans—largely because China, the largest buyer, has turned to Latin America in response to Trump’s trade tariffs last year. But it will take years to ramp up production capacity for turning those soybeans into oil.
Palm oil, which is produced largely in Malaysia and Indonesia and used mostly for food and cosmetics, is not eligible under the U.S. Renewable Fuel Standard or in the European Union because its cultivation has led to so much deforestation.
“But because the rule would drive increased demand for soybean oil, it will drive up prices for all vegetable oils, which are highly correlated,” Lashof said. “The problem is that, in the meantime, other vegetable oils are being used to make biofuel, and then palm oil is used to backfill that oil in the food markets. … They’re very tightly linked as substitutes in the international market.” Inside Climate News
--------
Eni’s African biofuels project reaps a bitter harvest for castor oil farmers
Farmers say the Italian energy giant’s green fuel drive has left them stranded
The Italian agent brought a flurry of excitement when he arrived in Kilifi County with news of a wonder-crop: castor.
Diego Barili was an intermediary for Eni, Italy’s state-owned energy giant. If farmers in Kilifi, north of Kenya’s port city of Mombasa, switched to growing castor, he said, he would pay life-changing cash for plants that Eni would turn into green fuel for customers including BMW, EasyJet and Ryanair.
Katsele Shauri Mitsanze was one of many who jumped at the opportunity. She planted castor across her smallholding, replacing maize she and her seven children relied on for food. They harvested the inedible castor beans and waited.
But Barili’s agents did not return.
“The officers said they would come and collect them but they never came,” said Mitsanze, 40. “My family really suffered because of the hunger.”
Through intermediaries like Barili, Eni has handed out seeds to more than a hundred thousand farmers across Kenya for a flagship project backed by the Italian government.
Italy’s populist administration hopes its Mattei Plan—named after Eni’s founder—will reset relations with Africa through investment and curb migration. Eni’s initiative is also important for the European Union, which has made biofuels crucial to its goal of cutting fossil fuel use.
Eni says its Kenya programme is “designed to avoid negative impact on food production and guarantee food security for farmers” and is having a “positive impact on local communities”.
A joint SourceMaterial and Politico investigation, based on interviews with 44 farmers across four Kenyan counties, as well as biofuel experts, activists and lawyers, raises doubts about those claims.
Biofuels bet
The European Union is betting big on the so-called bioeconomy. In November it unveiled plans to replace petrochemicals in products like plastics, building materials, chemicals and fibres with biomass—organic materials from trees and crops.
Biofuels are also a core part of the bloc’s green transition plan. Transport, particularly air travel, is among the largest causes of pollution in the EU and one of the toughest sectors to decarbonise. Brussels has set targets requiring airports to make at least 70 per cent of aviation fuel ‘sustainable’ by 2050.
Oil producers and car manufacturers have lobbied for biofuels: using them means holding onto petrol-burning engines rather than switching to electric power. Earlier this month the EU’s agriculture chief, Christophe Hansen, called for more flexible rules to stimulate biofuel production.
The EU’s biofuels push is coming at the expense of African farmers as there are insufficient mechanisms in place to protect them, said Pax Butchart, a campaigner at Biofuelwatch, a non-profit group.
“It’s a mistake politically to bet on biofuels. The traceability standards are just not there yet,” Butchart said. “Their ability to reduce carbon emissions is very suspect because of that.”
The EU is “working on an improvement of the system of sustainable certification”, a European Commission spokeswoman said.
‘Selling hope’ Read more at Source Material
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Palm oil news. CSPO Watch April 2026