Palm oil news April 2026
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April 30, 2026
Tropical forest loss eases in 2025 from record high, report shows
SAO PAULO, April 29 (Reuters) – Destruction of the world’s tropical forests eased in 2025 from a record high, a report showed on Wednesday, underscoring how decisive policy can help keep trees standing despite pressures from a warmer climate and expanding agricultural frontiers.
The world lost 4.3 million hectares (10.6 million acres) of pristine tropical forest last year, a 36% drop compared to 2024, due largely to Brazil’s efforts to curb deforestation as pledged by President Luiz Inacio Lula da Silva when he took office in 2023.
“It’s encouraging, when the problem feels massive, (that) there are real interventions that work out there and we can see it in the data,” said Elizabeth Goldman, a co-director of Global Forest Watch, which releases an annual report prepared by the World Resources Institute and the University of Maryland.
Still, Goldman said, countries are deforesting 70% more than they should be to meet the global commitment signed by almost all countries in 2023 to halt and reverse forest loss by 2030.
“Achieving this goal in the coming years will not be easy,” she said.
POLICY REVERSALS
Agricultural expansion continued to be the biggest driver of forest loss around the world, driven by farm commodities in nations such as Brazil, Bolivia and Indonesia, and subsistence farming in places such as the Democratic Republic of Congo.
Long-running policy continued to limit the loss of primary forests in Malaysia and Indonesia, where palm oil plantations have historically pressured biomes.
But President Prabowo Subianto’s push to expand a food estate program, which aims to make the country self-sufficient in food production, contributed to an increase in deforestation in Indonesia last year. Reuters
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Indonesia vows fair treatment as EU non-tariff barrier target palm oil
Jakarta (ANTARA) - The Indonesian Ministry of Foreign Affairs stated that Indonesia will continue to uphold the principles of fairness and non-discriminatory treatment in facing various non-tariff barriers imposed by the European Union (EU).
“Regarding the EUDR, Indonesia is pushing for the recognition of national standards (ISPO) and ensuring that regulations do not disadvantage smallholder farmers,” said the spokesperson of the ministry, Yvonne Mewengkang, in a written statement in Jakarta on Wednesday.
Mewengkang stated that Indonesia will continue to fight for a fairer market and prioritize protecting the interests of smallholder farmers and the national palm oil industry through constructive dialogue.
She said Indonesia also held several bilateral meetings with European Union member states on the sidelines of the 25th ASEAN-EU Ministerial Meeting to prepare for the implementation of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA), which is targeted to enter into force in January 2027.
The bilateral meetings also mapped out opportunities for export market diversification, including strengthening the digital economy and standardization sectors.
Regarding the 25th ASEAN-EU Ministerial Meeting, the spokesperson stated that Indonesian Deputy Foreign Minister Arrmanatha C. Nasir encouraged the ASEAN-EU strategic partnership, which will celebrate its 50th anniversary in 2027, to deliver tangible benefits for the public. Tempo
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EU Move to Phase Out Soybeans as Biofuel Feedstock by 2030 Threatens $2.2 Billion in US Exports
LINCOLN, Neb. (DTN) -- A decision by the European Commission on April 10, 2026, to phase out soybeans as a feedstock for biofuels by 2030 could have broader implications for U.S. agriculture, according to a new report from USDA's Foreign Agricultural Service this week.
The commission's proposed regulation to update its methodology for determining what it says is high indirect land use change (ILUC) risks associated with biofuels hasn't been finalized.
U.S. soybean exports to the European Union in 2025 were valued at $2.2 billion, according to USDA.
Since the EU imports about 90% of its soy for biodiesel from the U.S., Brazil and Argentina, if the update is adopted by the European Parliament and the European Council, it could affect U.S. soybean export demand.
With current rules, the European Commission defines high ILUC-risk feedstocks as feedstocks for which the share of expansion of the production into land with high-carbon feedstock is higher than 10% since 2008, with an annual expansion of more than 1%.
"Given the calculations of the commission in 2019, only palm oil fell under this definition," USDA-FAS said in its report.
"The use of high-risk ILUC biofuels, that can count toward the REDII renewable energy targets, were capped at the 2019 level through 2023 and are phased out until 2030."
USDA said with the new proposed rule, the commission is considering 2014 data instead of 2008.
"Under the new calculations both palm oil and soybeans fall under the definition of a high ILUC-risk feedstock for biofuel use and therefore will not be able to count toward the EU's targets for biofuel use by 2030," USDA said.
"This takes away incentives for using U.S. bean oil in biodiesel in Europe."
The EU's share of high-ILUC biofuels allowed in consumption of renewable energy would not be allowed to exceed 85.7% in 2024; 1.4% in 2025; 57.1% in 2026; 42.8% in 2027; 28.6% in 2028; 14.3% in 2029, and zero by 2030.
"The commission will assess whether it is appropriate to further specify the certification framework of low indirect land-use-change biofuels as regards the coverage of agricultural practices such as sequential cropping and intercropping, while preserving environmental safeguards," USDA-FAS said.
"The commission may also further examine the suitability of regional approaches in the scope of this regulation."
The regulation still must pass scrutiny from the parliament and the council, which typically takes two to four months. Progressive Farmer
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INDONESIA: ISPO Certification for Palm-Oil Bioenergy Businesses Mandatary from 2027
Indonesian Sustainable Palm Oil (ISPO) certification is to be mandatory for any Indonesia‑based palm oil bioenergy business. The move, announced as Minister of Energy and Mineral Resources Regulation No. 3 of 2026, is effective from 20 March 2027, and extends the ISPO requirement to a range of bioenergy activities, including biodiesel, biomass and biogas. Once secured, certificates will be valid for five years, but subject to periodic reviews.
Under the new regime, any business involved in the production of palm‑based bioenergy must demonstrate three things to qualify for ISPO certification – compliance with all applicable regulations, supply chain traceability and continuous business improvement. These requirements apply to all businesses operating in the sector, whether incorporated or unincorporated.
With specific regard to the second requirement, companies must show that they have implemented a raw material traceability system. This can be using either a segregation model, where inputs are fully ISPO‑certified, or a mass balance approach, where certified materials account for at least 10% of total inputs.
The new regulations also introduce detailed technical criteria relating to economic, social and environmental performance. This sees businesses obliged to properly document productivity and energy efficiency, implement corporate social responsibility and occupational health and safety measures, and comply with all environmental permit and reporting requirements.
Certification applications must be submitted through accredited ISPO certification bodies, as recognised by the National Accreditation Committee of Indonesia, with the subsequent audit process limited to three months. HKTDC
Tropical forest loss eases in 2025 from record high, report shows
- Brazil’s anti-deforestation policies drove a 36% drop in tropical forest loss, report finds
- Agricultural expansion remains main driver, with policy reversals threatening future progress
- Climate change intensifies fires, turning forests into carbon sources, warns World Resources Institute
- Canada saw boreal forest fires burn five times the 20-year average over the past three years
- Environmental groups warn ending Amazon soy moratorium may accelerate deforestation in Brazil
SAO PAULO, April 29 (Reuters) – Destruction of the world’s tropical forests eased in 2025 from a record high, a report showed on Wednesday, underscoring how decisive policy can help keep trees standing despite pressures from a warmer climate and expanding agricultural frontiers.
The world lost 4.3 million hectares (10.6 million acres) of pristine tropical forest last year, a 36% drop compared to 2024, due largely to Brazil’s efforts to curb deforestation as pledged by President Luiz Inacio Lula da Silva when he took office in 2023.
“It’s encouraging, when the problem feels massive, (that) there are real interventions that work out there and we can see it in the data,” said Elizabeth Goldman, a co-director of Global Forest Watch, which releases an annual report prepared by the World Resources Institute and the University of Maryland.
Still, Goldman said, countries are deforesting 70% more than they should be to meet the global commitment signed by almost all countries in 2023 to halt and reverse forest loss by 2030.
“Achieving this goal in the coming years will not be easy,” she said.
POLICY REVERSALS
Agricultural expansion continued to be the biggest driver of forest loss around the world, driven by farm commodities in nations such as Brazil, Bolivia and Indonesia, and subsistence farming in places such as the Democratic Republic of Congo.
Long-running policy continued to limit the loss of primary forests in Malaysia and Indonesia, where palm oil plantations have historically pressured biomes.
But President Prabowo Subianto’s push to expand a food estate program, which aims to make the country self-sufficient in food production, contributed to an increase in deforestation in Indonesia last year. Reuters
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Indonesia vows fair treatment as EU non-tariff barrier target palm oil
Jakarta (ANTARA) - The Indonesian Ministry of Foreign Affairs stated that Indonesia will continue to uphold the principles of fairness and non-discriminatory treatment in facing various non-tariff barriers imposed by the European Union (EU).
“Regarding the EUDR, Indonesia is pushing for the recognition of national standards (ISPO) and ensuring that regulations do not disadvantage smallholder farmers,” said the spokesperson of the ministry, Yvonne Mewengkang, in a written statement in Jakarta on Wednesday.
Mewengkang stated that Indonesia will continue to fight for a fairer market and prioritize protecting the interests of smallholder farmers and the national palm oil industry through constructive dialogue.
She said Indonesia also held several bilateral meetings with European Union member states on the sidelines of the 25th ASEAN-EU Ministerial Meeting to prepare for the implementation of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA), which is targeted to enter into force in January 2027.
The bilateral meetings also mapped out opportunities for export market diversification, including strengthening the digital economy and standardization sectors.
Regarding the 25th ASEAN-EU Ministerial Meeting, the spokesperson stated that Indonesian Deputy Foreign Minister Arrmanatha C. Nasir encouraged the ASEAN-EU strategic partnership, which will celebrate its 50th anniversary in 2027, to deliver tangible benefits for the public. Tempo
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EU Move to Phase Out Soybeans as Biofuel Feedstock by 2030 Threatens $2.2 Billion in US Exports
LINCOLN, Neb. (DTN) -- A decision by the European Commission on April 10, 2026, to phase out soybeans as a feedstock for biofuels by 2030 could have broader implications for U.S. agriculture, according to a new report from USDA's Foreign Agricultural Service this week.
The commission's proposed regulation to update its methodology for determining what it says is high indirect land use change (ILUC) risks associated with biofuels hasn't been finalized.
U.S. soybean exports to the European Union in 2025 were valued at $2.2 billion, according to USDA.
Since the EU imports about 90% of its soy for biodiesel from the U.S., Brazil and Argentina, if the update is adopted by the European Parliament and the European Council, it could affect U.S. soybean export demand.
With current rules, the European Commission defines high ILUC-risk feedstocks as feedstocks for which the share of expansion of the production into land with high-carbon feedstock is higher than 10% since 2008, with an annual expansion of more than 1%.
"Given the calculations of the commission in 2019, only palm oil fell under this definition," USDA-FAS said in its report.
"The use of high-risk ILUC biofuels, that can count toward the REDII renewable energy targets, were capped at the 2019 level through 2023 and are phased out until 2030."
USDA said with the new proposed rule, the commission is considering 2014 data instead of 2008.
"Under the new calculations both palm oil and soybeans fall under the definition of a high ILUC-risk feedstock for biofuel use and therefore will not be able to count toward the EU's targets for biofuel use by 2030," USDA said.
"This takes away incentives for using U.S. bean oil in biodiesel in Europe."
The EU's share of high-ILUC biofuels allowed in consumption of renewable energy would not be allowed to exceed 85.7% in 2024; 1.4% in 2025; 57.1% in 2026; 42.8% in 2027; 28.6% in 2028; 14.3% in 2029, and zero by 2030.
"The commission will assess whether it is appropriate to further specify the certification framework of low indirect land-use-change biofuels as regards the coverage of agricultural practices such as sequential cropping and intercropping, while preserving environmental safeguards," USDA-FAS said.
"The commission may also further examine the suitability of regional approaches in the scope of this regulation."
The regulation still must pass scrutiny from the parliament and the council, which typically takes two to four months. Progressive Farmer
--------
INDONESIA: ISPO Certification for Palm-Oil Bioenergy Businesses Mandatary from 2027
Indonesian Sustainable Palm Oil (ISPO) certification is to be mandatory for any Indonesia‑based palm oil bioenergy business. The move, announced as Minister of Energy and Mineral Resources Regulation No. 3 of 2026, is effective from 20 March 2027, and extends the ISPO requirement to a range of bioenergy activities, including biodiesel, biomass and biogas. Once secured, certificates will be valid for five years, but subject to periodic reviews.
Under the new regime, any business involved in the production of palm‑based bioenergy must demonstrate three things to qualify for ISPO certification – compliance with all applicable regulations, supply chain traceability and continuous business improvement. These requirements apply to all businesses operating in the sector, whether incorporated or unincorporated.
With specific regard to the second requirement, companies must show that they have implemented a raw material traceability system. This can be using either a segregation model, where inputs are fully ISPO‑certified, or a mass balance approach, where certified materials account for at least 10% of total inputs.
The new regulations also introduce detailed technical criteria relating to economic, social and environmental performance. This sees businesses obliged to properly document productivity and energy efficiency, implement corporate social responsibility and occupational health and safety measures, and comply with all environmental permit and reporting requirements.
Certification applications must be submitted through accredited ISPO certification bodies, as recognised by the National Accreditation Committee of Indonesia, with the subsequent audit process limited to three months. HKTDC
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April 29, 2026
Dependence on Energy Imports Makes Indonesia’s Energy Security Vulnerable
Jakarta, April 28, 2026 – Rising tensions once again in the Middle East have sparked global concern, particularly regarding the security of energy supplies. For Indonesia, this situation is a reminder of the vulnerability of national energy security, which still relies heavily on imported fossil energy. As global oil prices continue to rise amid escalating tensions in the Strait of Hormuz, and risks of distribution disruptions increase, pressure on energy import costs, the exchange rate, and the country’s fiscal space is becoming greater.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia announced three strategies to ensure national energy stability amid global geopolitical dynamics on Monday (April 27). These strategies are: optimizing oil and gas lifting, promoting biodiesel programs such as B50 to reduce diesel imports, and developing bioethanol-based fuels such as E20 for gasoline.
Previously, the Government announced eight new policies as energy-saving measures amid the global crisis caused by geopolitical conflict on Tuesday (March 31). These policies include implementing one day of work from home (WFH) every Friday for civil servants (ASN) to promote government digitalization and mobility efficiency, limiting official vehicle use by up to 50%, encouraging public transportation to reduce energy consumption, strengthening energy-saving culture and smart mobility among the public, and reinforcing fiscal and energy policies, including budget refocusing, optimizing state spending, and implementing B50 biodiesel to reduce dependence on fossil fuels.
President Prabowo Subianto has also instructed his administration to implement various programs, including 100 GW of solar power plants (PLTS), replacing diesel power plants (PLTD) with solar power plus battery energy storage systems (BESS), converting 120 million conventional motorcycles into electric motorcycles, and accelerating the B50 biodiesel program.
IESR Response to Government Policy Measures
IESR believes some government policies are moving toward structural solutions, while others need refinement to avoid creating overly ambitious targets that are difficult to achieve. Success should not be measured solely by target ambition, but by ecosystem readiness, fiscal cost, and real impact on reducing fuel imports. IESR
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Indonesia cracks down on illegal palm oil expansion in Seblat elephant habitat
Jakarta – Authorities have arrested two suspects and seized illegal oil palm plantations in the Seblat landscape, as part of a broader crackdown on forest encroachment threatening critical habitat for the Sumatran elephant, the Ministry of Forestry said Monday, April 27.
In separate operations, the forestry law enforcement unit under the ministry detained two individuals identified as S (58) and D (40) for illegally clearing and occupying forest land in the Seblat area in Bengkulu province.
The first suspect, S, was found to have managed an approximately 30-hectare oil palm plantation inside a production forest area in Air Rami, Mukomuko regency. Authorities seized an excavator, a hut, and documents linked to illegal land transactions.
In a separate case, D was arrested for encroaching on land within a key elephant corridor in the Taman Wisata Alam Seblat. The arrest followed a joint operation involving forestry officials, local conservation agencies, and security forces, during which officers faced resistance from unidentified individuals.
Officials said the operations are part of the “Operasi Merah Putih” initiative to restore and secure the Bentang Alam Seblat, a landscape considered vital for the survival of the endangered Sumatran elephant.
The Director General of Forestry Law Enforcement, Dwi Januanto Nugroho, said that he will not compromise with those who damage forest ecosystems, adding that the government will also rehabilitate degraded land and strengthen boundary management in the area.
Both suspects face up to 10 years in prison and billions of rupiah in fines under Indonesia’s forestry and conservation laws. Authorities said investigations are ongoing to identify other actors involved in the illegal activities. (nsh)
Banner photo: Authorities arrested two suspects and seized illegal oil palm plantations in the Seblat landscape, Sumatra. Source: Ministry of Forestry Tanah Air
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Palm Oil: Nigeria’s green gold and the battle for $72bn global market
In the 1960s, Nigeria controlled 43% of global palm oil supply. Today, we produce just 1.4 million metric tons and still import ₦600 billion worth yearly to feed our soap, noodle, and biscuit factories. Yet in the red soils of Edo, Ondo, and Cross River, a quiet revolution is brewing. Smallholders are replanting. Okomu and Presco are expanding. Wilmar is betting big. With the global palm oil market projected at $72 billion by 2027, the question is no longer “can Nigeria return?” but “will 2027 politicians choose green gold over black gold?”
THE FALL AND THE FIGHTBACK
Nigeria’s palm oil story is a parable of missed opportunity. Before crude oil, the crop was our forex king. The Eastern Region’s farm settlements and the Western Region’s cooperative mills built schools and roads from palm kernels. Then oil came in 1958. By 1975, Malaysia — which took seedlings from Nigeria’s NIFOR in 1961 — overtook us. Today, Malaysia and Indonesia command 84% of global output.
But the tide is turning. Q1 2026 data from the National Bureau of Statistics shows agriculture grew 1.76%, with oil palm as a standout. Nigeria is now the 5th largest producer globally, though we remain a net importer. The gap between local demand of 2.5m MT and supply of 1.4m MT is the ₦1.2 trillion opportunity. Nigerian Observer
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Busoga farmers urged to shift from sugarcane to palm oil farming
What you need to know:
The Resident District Commissioner of Bugiri, Richard Gulume Balyainho, said the major cause of poverty in Busoga is sugarcane growing
Farmers in Uganda urged to shift from sugarcane to palm oil production
The Ministry of Agriculture, Animal Industry and Fisheries in Uganda has launched a sensitisation campaign encouraging farmers to shift from sugarcane cultivation to oil palm farming. The initiative is part of the government’s 10-year National Oil Palm Project, supported by the International Fund for Agricultural Development.
The project aims to expand oil palm production across several regions of the country, with officials highlighting suitable growing conditions and strong agricultural potential. It is being implemented through cooperation between the government and development partners, with funding and technical support from international institutions.
According to ministry officials, the programme targets smallholder farmers with up to five acres of land. Participants will receive free seedlings and fertilisers, along with access to credit facilities. Authorities also stated that soil testing has been carried out and confirmed the crop’s environmental compatibility, while some early plantations are already approaching their first harvest.
Local officials argue that sugarcane farming has contributed to poverty in certain areas, as land is often leased at low rates or fully dedicated to a single crop, limiting food production. They believe that switching to oil palm could improve incomes and promote more diversified agricultural practices.
However, farmers have raised concerns about delays in seedling delivery, inconsistent supply of inputs, and uncertainty over guaranteed markets. They are calling for stronger government support, timely distribution systems, and protection from intermediaries to ensure the project delivers sustainable benefits. UKR Agroconsult
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Revising biodiesel blend to B15 good for producers but not manufacturers
Biodiesel producers say raising the palm oil content will enable them to increase production of the blended fuel, but manufacturers do not see a big impact on their costs.
PETALING JAYA: The government’s decision to raise palm oil content in biodiesel from 10% currently to 15% will have a positive impact on producers, but almost none for industrial users, according to two interest groups.
Malaysian Biodiesel Association (MBA) president Tee Lip Teng said the move would raise demand for biodiesel and, by extension, help to take up unused biodiesel production capacity in the country.
He stressed that this could also help Malaysia to weather global fuel supply shocks.
“We expect higher biodiesel blends of B12 and/or B15 to result in additional local demand of up to 334,000 metric tonnes per annum. This will lead to an increase in the utilisation rates of existing plants,” he told FMT, citing data from the Malaysian Palm Oil Board.
Malaysia began commercial production of biodiesel in the early 2000s to capture a share of the expanding global market, but exports dropped with increasingly tighter guidelines in Europe and the United States.
Last year, Malaysia produced just under a million tonnes of biodiesel under the prevailing blending mandate, accounting for less than half of the industry’s total annual production capacity of 2.4 million tonnes.
Of that, 95% was consumed locally while only 57,000 tonnes was exported.
Tee said voluntary uptake outside the mandate remains limited. “Any uptake outside the mandate is largely driven by ESG (environment, social and governance) commitments or short-term price advantage,” he said.
“In this regard, the industry hopes that the government will give due consideration to the MBA’s request for a 10% sales tax exemption for biodiesel consumed outside the national biodiesel programme. This will encourage wider voluntary uptake of biodiesel beyond mandated blending requirements,” he said.
Malaysia currently enforces a B10 mandate for the transport sector, while higher blends of up to B20 are used in places such as Labuan, Langkawi and Sarawak, except Bintulu town.
The “B” number is the percentage of palm oil in the biodiesel mix. For example, B10 means 10% palm oil and 90% petroleum diesel or petrodiesel, while B15 means 15% palm oil.
The government has said it will raise the biodiesel blend from B10 to B15, starting with an interim B12 level.
The plan is largely driven by heightened global fuel supply risks. Nearly half of Malaysia’s crude oil imports pass through the Strait of Hormuz, a key shipping route now affected by the Middle East conflict.
At home, fuel subsidies are also expected to reach about RM7 billion per month, up from RM4 billion previously.
Federation of Malaysian Manufacturers (FMM) president Jacob Lee said the inclusion of biodiesel in the fuel mix has only a marginal impact on overall industrial fuel costs.
He said global oil prices still play the biggest role in determining diesel costs, especially since manufacturers do not receive fuel subsidies.
“Subsidised diesel has historically been targeted at specific segments, particularly logistics and transport operators using vehicles in categories singled out as eligible,” he told FMT.
“As such, manufacturers have consistently operated under market-based fuel pricing conditions, making supply reliability and predictability key concerns.”
Consumers have also been cautioned against assuming that biodiesel will be cheaper than petrodiesel.
Tee pointed out that the cost of producing biodiesel also hinges on changes in the price of palm oil, and at times it may be even more costly to use biodiesel than petrodiesel.
However, he said, raising palm oil content in biodiesel would help to stretch existing diesel supplies and reduce Malaysia’s exposure to global disruptions.
“For every metric tonne of palm oil used (in the blending process), one metric tonne of petrodiesel is saved,” he said, adding that Malaysia’s position as a major palm oil producer ensures a steady domestic supply. FMT
Dependence on Energy Imports Makes Indonesia’s Energy Security Vulnerable
Jakarta, April 28, 2026 – Rising tensions once again in the Middle East have sparked global concern, particularly regarding the security of energy supplies. For Indonesia, this situation is a reminder of the vulnerability of national energy security, which still relies heavily on imported fossil energy. As global oil prices continue to rise amid escalating tensions in the Strait of Hormuz, and risks of distribution disruptions increase, pressure on energy import costs, the exchange rate, and the country’s fiscal space is becoming greater.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia announced three strategies to ensure national energy stability amid global geopolitical dynamics on Monday (April 27). These strategies are: optimizing oil and gas lifting, promoting biodiesel programs such as B50 to reduce diesel imports, and developing bioethanol-based fuels such as E20 for gasoline.
Previously, the Government announced eight new policies as energy-saving measures amid the global crisis caused by geopolitical conflict on Tuesday (March 31). These policies include implementing one day of work from home (WFH) every Friday for civil servants (ASN) to promote government digitalization and mobility efficiency, limiting official vehicle use by up to 50%, encouraging public transportation to reduce energy consumption, strengthening energy-saving culture and smart mobility among the public, and reinforcing fiscal and energy policies, including budget refocusing, optimizing state spending, and implementing B50 biodiesel to reduce dependence on fossil fuels.
President Prabowo Subianto has also instructed his administration to implement various programs, including 100 GW of solar power plants (PLTS), replacing diesel power plants (PLTD) with solar power plus battery energy storage systems (BESS), converting 120 million conventional motorcycles into electric motorcycles, and accelerating the B50 biodiesel program.
IESR Response to Government Policy Measures
IESR believes some government policies are moving toward structural solutions, while others need refinement to avoid creating overly ambitious targets that are difficult to achieve. Success should not be measured solely by target ambition, but by ecosystem readiness, fiscal cost, and real impact on reducing fuel imports. IESR
--------
Indonesia cracks down on illegal palm oil expansion in Seblat elephant habitat
Jakarta – Authorities have arrested two suspects and seized illegal oil palm plantations in the Seblat landscape, as part of a broader crackdown on forest encroachment threatening critical habitat for the Sumatran elephant, the Ministry of Forestry said Monday, April 27.
In separate operations, the forestry law enforcement unit under the ministry detained two individuals identified as S (58) and D (40) for illegally clearing and occupying forest land in the Seblat area in Bengkulu province.
The first suspect, S, was found to have managed an approximately 30-hectare oil palm plantation inside a production forest area in Air Rami, Mukomuko regency. Authorities seized an excavator, a hut, and documents linked to illegal land transactions.
In a separate case, D was arrested for encroaching on land within a key elephant corridor in the Taman Wisata Alam Seblat. The arrest followed a joint operation involving forestry officials, local conservation agencies, and security forces, during which officers faced resistance from unidentified individuals.
Officials said the operations are part of the “Operasi Merah Putih” initiative to restore and secure the Bentang Alam Seblat, a landscape considered vital for the survival of the endangered Sumatran elephant.
The Director General of Forestry Law Enforcement, Dwi Januanto Nugroho, said that he will not compromise with those who damage forest ecosystems, adding that the government will also rehabilitate degraded land and strengthen boundary management in the area.
Both suspects face up to 10 years in prison and billions of rupiah in fines under Indonesia’s forestry and conservation laws. Authorities said investigations are ongoing to identify other actors involved in the illegal activities. (nsh)
Banner photo: Authorities arrested two suspects and seized illegal oil palm plantations in the Seblat landscape, Sumatra. Source: Ministry of Forestry Tanah Air
--------
Palm Oil: Nigeria’s green gold and the battle for $72bn global market
In the 1960s, Nigeria controlled 43% of global palm oil supply. Today, we produce just 1.4 million metric tons and still import ₦600 billion worth yearly to feed our soap, noodle, and biscuit factories. Yet in the red soils of Edo, Ondo, and Cross River, a quiet revolution is brewing. Smallholders are replanting. Okomu and Presco are expanding. Wilmar is betting big. With the global palm oil market projected at $72 billion by 2027, the question is no longer “can Nigeria return?” but “will 2027 politicians choose green gold over black gold?”
THE FALL AND THE FIGHTBACK
Nigeria’s palm oil story is a parable of missed opportunity. Before crude oil, the crop was our forex king. The Eastern Region’s farm settlements and the Western Region’s cooperative mills built schools and roads from palm kernels. Then oil came in 1958. By 1975, Malaysia — which took seedlings from Nigeria’s NIFOR in 1961 — overtook us. Today, Malaysia and Indonesia command 84% of global output.
But the tide is turning. Q1 2026 data from the National Bureau of Statistics shows agriculture grew 1.76%, with oil palm as a standout. Nigeria is now the 5th largest producer globally, though we remain a net importer. The gap between local demand of 2.5m MT and supply of 1.4m MT is the ₦1.2 trillion opportunity. Nigerian Observer
--------
Busoga farmers urged to shift from sugarcane to palm oil farming
What you need to know:
The Resident District Commissioner of Bugiri, Richard Gulume Balyainho, said the major cause of poverty in Busoga is sugarcane growing
Farmers in Uganda urged to shift from sugarcane to palm oil production
The Ministry of Agriculture, Animal Industry and Fisheries in Uganda has launched a sensitisation campaign encouraging farmers to shift from sugarcane cultivation to oil palm farming. The initiative is part of the government’s 10-year National Oil Palm Project, supported by the International Fund for Agricultural Development.
The project aims to expand oil palm production across several regions of the country, with officials highlighting suitable growing conditions and strong agricultural potential. It is being implemented through cooperation between the government and development partners, with funding and technical support from international institutions.
According to ministry officials, the programme targets smallholder farmers with up to five acres of land. Participants will receive free seedlings and fertilisers, along with access to credit facilities. Authorities also stated that soil testing has been carried out and confirmed the crop’s environmental compatibility, while some early plantations are already approaching their first harvest.
Local officials argue that sugarcane farming has contributed to poverty in certain areas, as land is often leased at low rates or fully dedicated to a single crop, limiting food production. They believe that switching to oil palm could improve incomes and promote more diversified agricultural practices.
However, farmers have raised concerns about delays in seedling delivery, inconsistent supply of inputs, and uncertainty over guaranteed markets. They are calling for stronger government support, timely distribution systems, and protection from intermediaries to ensure the project delivers sustainable benefits. UKR Agroconsult
--------
Revising biodiesel blend to B15 good for producers but not manufacturers
Biodiesel producers say raising the palm oil content will enable them to increase production of the blended fuel, but manufacturers do not see a big impact on their costs.
PETALING JAYA: The government’s decision to raise palm oil content in biodiesel from 10% currently to 15% will have a positive impact on producers, but almost none for industrial users, according to two interest groups.
Malaysian Biodiesel Association (MBA) president Tee Lip Teng said the move would raise demand for biodiesel and, by extension, help to take up unused biodiesel production capacity in the country.
He stressed that this could also help Malaysia to weather global fuel supply shocks.
“We expect higher biodiesel blends of B12 and/or B15 to result in additional local demand of up to 334,000 metric tonnes per annum. This will lead to an increase in the utilisation rates of existing plants,” he told FMT, citing data from the Malaysian Palm Oil Board.
Malaysia began commercial production of biodiesel in the early 2000s to capture a share of the expanding global market, but exports dropped with increasingly tighter guidelines in Europe and the United States.
Last year, Malaysia produced just under a million tonnes of biodiesel under the prevailing blending mandate, accounting for less than half of the industry’s total annual production capacity of 2.4 million tonnes.
Of that, 95% was consumed locally while only 57,000 tonnes was exported.
Tee said voluntary uptake outside the mandate remains limited. “Any uptake outside the mandate is largely driven by ESG (environment, social and governance) commitments or short-term price advantage,” he said.
“In this regard, the industry hopes that the government will give due consideration to the MBA’s request for a 10% sales tax exemption for biodiesel consumed outside the national biodiesel programme. This will encourage wider voluntary uptake of biodiesel beyond mandated blending requirements,” he said.
Malaysia currently enforces a B10 mandate for the transport sector, while higher blends of up to B20 are used in places such as Labuan, Langkawi and Sarawak, except Bintulu town.
The “B” number is the percentage of palm oil in the biodiesel mix. For example, B10 means 10% palm oil and 90% petroleum diesel or petrodiesel, while B15 means 15% palm oil.
The government has said it will raise the biodiesel blend from B10 to B15, starting with an interim B12 level.
The plan is largely driven by heightened global fuel supply risks. Nearly half of Malaysia’s crude oil imports pass through the Strait of Hormuz, a key shipping route now affected by the Middle East conflict.
At home, fuel subsidies are also expected to reach about RM7 billion per month, up from RM4 billion previously.
Federation of Malaysian Manufacturers (FMM) president Jacob Lee said the inclusion of biodiesel in the fuel mix has only a marginal impact on overall industrial fuel costs.
He said global oil prices still play the biggest role in determining diesel costs, especially since manufacturers do not receive fuel subsidies.
“Subsidised diesel has historically been targeted at specific segments, particularly logistics and transport operators using vehicles in categories singled out as eligible,” he told FMT.
“As such, manufacturers have consistently operated under market-based fuel pricing conditions, making supply reliability and predictability key concerns.”
Consumers have also been cautioned against assuming that biodiesel will be cheaper than petrodiesel.
Tee pointed out that the cost of producing biodiesel also hinges on changes in the price of palm oil, and at times it may be even more costly to use biodiesel than petrodiesel.
However, he said, raising palm oil content in biodiesel would help to stretch existing diesel supplies and reduce Malaysia’s exposure to global disruptions.
“For every metric tonne of palm oil used (in the blending process), one metric tonne of petrodiesel is saved,” he said, adding that Malaysia’s position as a major palm oil producer ensures a steady domestic supply. FMT
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April 28, 2026
US-War Hastens an Indonesian Biofuels Push That Has Global Stakes
Four trucks and a passenger bus have just completed a 40,000-kilometer (25,000-mile) road trip around Java. The epic journey — a distance equivalent to a circumnavigation of the globe — will help to determine whether Indonesia can deliver one of the world’s most ambitious biofuel-blending mandates in the next few months.
(Bloomberg) — Four trucks and a passenger bus have just completed a 40,000-kilometer (25,000-mile) road trip around Java. The epic journey — a distance equivalent to a circumnavigation of the globe — will help to determine whether Indonesia can deliver one of the world’s most ambitious biofuel-blending mandates in the next few months.
With energy bills rising due to the Iran war, the Southeast Asian nation is fast-tracking the rollout of a diesel blend comprised 50% of biofuels from its vast palm plantations. The aggressive timetable will push the industry’s limits and serve as a test case for other crop-rich economies – from Malaysia to Brazil – that are seeking to cut reliance on fossil fuels.
“If Indonesia succeeds, it shows that very high biofuel blends are possible when demand is engineered” rather than left to market forces, said Khor Yu Leng, an economist at Segi Enam Advisors in Singapore, who has tracked the palm oil industry for nearly two decades. “This could push other countries to strengthen mandates for energy security.”
By some distance, Indonesia is the global leader in terms of the proportion of biofuels in its diesel mix. The country produces a blend that is 40% derived from palm oil, and its ambition to introduce the next grade – B50 – aligns with President Prabowo Subianto’s push toward self-sufficiency in food and fuel.
The world’s biggest palm oil producer has the resources to succeed. The spike in crude prices arising from the war has also given the country a window to advance its goal — on the rare occasions, such as now, when conventional diesel costs more than biofuel, the government avoids paying a subsidy that’s usually needed to incentivize producers and keep biodiesel competitive at the pump.
But the race to roll out B50 by July – at least a year ahead of a previous schedule – faces challenges. Another key input for biodiesel, methanol, is in short supply due to the war. Storage tanks, meanwhile, are filled with unsold byproducts, according to people familiar with the matter, who asked not to be named discussing private matters. Bloomberg/ Financial Post
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Indonesia’s 50% Biodiesel Program Becomes Global Model, Energy Official Says
Jakarta. Indonesia’s planned rollout of a 50% biodiesel blend for vehicles and industrial use is expected to become the first program of its kind in the world and is already drawing interest from other countries seeking to study and replicate the model, a senior Energy Ministry official said.
The initiative, known as B50, is scheduled to be implemented on July 1 and is currently undergoing road trials using diesel-powered vehicles. Testing has now entered a new phase involving diesel rail operations.
Eniya Listiyani Dewi, director general of renewable energy with the ministry, said Indonesia began developing biodiesel blending programs around 15 years ago and is now successfully using a 40% biodiesel mix without major issues.
“There are no technical references we can access. We are moving forward without an example to follow, and that is something we are proud of,” Eniya said.
“Many countries are now coming to us and making contact to learn how to develop B50, because there is no other reference besides Indonesia,” she added, without naming the countries involved.
Testing in the railway sector will begin with diesel generators serving the Yogyakarta–Jakarta route, followed by trials using diesel locomotives.
The rail generator trial will run for 2,400 operating hours.
After that, locomotive testing will be conducted on the Surabaya–Jakarta route over six months.
“The final phase of B50 railway testing is expected in October 2026. We are conducting trials under real operating conditions so we can see the actual results,” Eniya said. Jakarta Globe
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Energy Transition & Sustainability
Indonesia’s Biodiesel Shift; Disruptions to Asian Oil; and China’s Dual Industrial Mandate
Indonesia to stop diesel imports as it shifts to 50% biodiesel blend: Minister
Indonesia will stop importing subsidized low-grade diesel fuel from July 1 as the government enforces its B50 biodiesel program, which requires a 50% biodiesel blend, according to Agriculture Minister Andi Amran Sulaiman.
"We will no longer import Solar starting July 1, when B50 takes effect,” Amran said April 19. “This is Indonesia's future energy because the source comes from palm oil." Solar is the Indonesian name for subsidized automotive diesel fuel, primarily used for public transport and small vehicles.
Indonesia is the world's largest producer and supplier of palm oil and has a 40% biodiesel mandate, also known as B40. In 2026, the country is fast-tracking biofuel mandates in the interest of energy security, as its energy subsidy bill has surged since April due to the ongoing war in the Middle East. SP Global
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Expert Explains: Why Indonesia’s new biofuel push could make cooking oil expensive in India
India imports around USD 8.5 billion of palm oil, and more than half of this comes from Indonesia, which now wants to use more of it to make fuel. Here's how India will be impacted.
Amid the surge in oil prices because of the Iran war, Indonesia has announced the roll-out of the biofuel B50, a blend of 50% palm oil-based biodiesel and 50% conventional diesel. The fuel is being tested and should be in use by July. For India, which relies heavily on Indonesian palm oil imports, this could mean tighter supply and pricier cooking oil back home. Prerna Prabhakar, a Fellow at the Centre for Social and Economic Progress, explains what Indonesia is doing and how it will impact India.
What’s driving Indonesia’s push for B50?
Indonesia’s net imports of crude oil stood at around USD 7.8 billion as of 2025. The proposed B50 biodiesel programme aims to partially substitute these imports with palm oil-based fuel. This policy push comes amid heightened geopolitical uncertainties and a recent surge in global oil prices, which have crossed $100 per barrel in recent days. Indian Express
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Deforestation is surging in Indonesia
Indonesia’s forests, long held up as a case of tentative progress, are again under pressure. New analysis shows deforestation rose sharply in 2025, reversing several years of decline and returning to levels not seen in nearly a decade, reports Mongabay’s Hans Nicholas Jong.
Auriga Nusantara, an Indonesian NGO, estimates that more than 430,000 hectares (1.1 million acres) were cleared last year, a jump of 66% from 2024. The increase follows a period when forest loss had fallen steadily, reaching a low in 2021 after a series of policy interventions and tighter oversight. Since then, losses have climbed each year, with 2025 marking a clear break from the earlier trend. Mongabay
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Malaysia, EU in final stage of signing free trade agreement
BANDAR SERI BEGAWAN (April 27): Malaysia and the European Union (EU) are now in the final stage of signing a Free Trade Agreement (FTA) as well as finalising a comprehensive partnership aimed at strengthening economic cooperation and bilateral relations.
Foreign Minister Datuk Seri Mohamad Hasan said the positive development is driven by the EU, which now views Southeast Asia as a strategic and important bloc following unilateral tariffs imposed by the US and instability resulting from the Russia-Ukraine conflict.
Without specifying a timeline, he said Malaysia wants to finalise the agreement as soon as possible so that it can act as a catalyst to boost trade between Malaysia and the EU.
“I also mentioned this earlier during the meeting with EU representatives,” he told Bernama and RTM after holding a bilateral meeting with the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, on the sidelines of the 25th Asean-EU Ministerial Meeting (AEMM) here on Monday.
On Sept 25 last year, EU Trade Commissioner Maroš Šefcovic was reported to have said that the Malaysia-EU FTA is expected to be finalised this year, with trade between Malaysia and Europe, which reached €46 billion, expected to grow rapidly once the agreement is implemented.
Mohamad said that during the meeting with Kallas, he also raised the issue of the strong anti-palm oil campaign in Europe and rejected the ongoing anti-palm oil campaigns being actively promoted in countries in the region.
He stressed that the campaign is not based on scientific evidence but is instead driven by lobbyists from competing oil industries in neighbouring countries.
“I said that it is unfair because labelling food as containing palm oil clearly violates trade ethics,” he said.
According to him, Kallas understood and agreed with the basis of Malaysia’s arguments and expressed the EU’s willingness to help address the unfair campaign.
Touching on the EU Deforestation Regulation (EUDR), Mohamad urged the EU not to equate Malaysia’s forest sustainability standards with practices in other countries.
“More than 55% of our land is still covered by tropical forests, and we do not destroy forests to plant oil palm,” he stressed.
He emphasised that the majority of Malaysia’s palm oil industry is professionally managed by large plantation companies that fully comply with the Malaysian Sustainable Palm Oil (MSPO) standards.
In this regard, he called on the EU to conduct a detailed assessment of the sustainable management of oil palm estates in Malaysia, which are recognised as having high standards, before imposing any discriminatory measures.
Meanwhile, Mohamad said Malaysia’s current focus is on exporting processed palm oil with higher added value, rather than merely exporting crude palm oil.
He said processed palm oil is not only used as cooking oil but is also widely utilised across various downstream industries, including chocolate manufacturing.
“The European Union is a major importer of processed palm oil. Therefore, this is a profitable market for us, and that is why we must firmly counter this anti-palm oil campaign,” he said.
He added that with continuous clarification, Malaysia hopes the EU will better understand the actual practices in its palm oil industry and no longer protect anti-palm oil lobbyists who could affect international trade value. Bernama/ The Edge
US-War Hastens an Indonesian Biofuels Push That Has Global Stakes
Four trucks and a passenger bus have just completed a 40,000-kilometer (25,000-mile) road trip around Java. The epic journey — a distance equivalent to a circumnavigation of the globe — will help to determine whether Indonesia can deliver one of the world’s most ambitious biofuel-blending mandates in the next few months.
(Bloomberg) — Four trucks and a passenger bus have just completed a 40,000-kilometer (25,000-mile) road trip around Java. The epic journey — a distance equivalent to a circumnavigation of the globe — will help to determine whether Indonesia can deliver one of the world’s most ambitious biofuel-blending mandates in the next few months.
With energy bills rising due to the Iran war, the Southeast Asian nation is fast-tracking the rollout of a diesel blend comprised 50% of biofuels from its vast palm plantations. The aggressive timetable will push the industry’s limits and serve as a test case for other crop-rich economies – from Malaysia to Brazil – that are seeking to cut reliance on fossil fuels.
“If Indonesia succeeds, it shows that very high biofuel blends are possible when demand is engineered” rather than left to market forces, said Khor Yu Leng, an economist at Segi Enam Advisors in Singapore, who has tracked the palm oil industry for nearly two decades. “This could push other countries to strengthen mandates for energy security.”
By some distance, Indonesia is the global leader in terms of the proportion of biofuels in its diesel mix. The country produces a blend that is 40% derived from palm oil, and its ambition to introduce the next grade – B50 – aligns with President Prabowo Subianto’s push toward self-sufficiency in food and fuel.
The world’s biggest palm oil producer has the resources to succeed. The spike in crude prices arising from the war has also given the country a window to advance its goal — on the rare occasions, such as now, when conventional diesel costs more than biofuel, the government avoids paying a subsidy that’s usually needed to incentivize producers and keep biodiesel competitive at the pump.
But the race to roll out B50 by July – at least a year ahead of a previous schedule – faces challenges. Another key input for biodiesel, methanol, is in short supply due to the war. Storage tanks, meanwhile, are filled with unsold byproducts, according to people familiar with the matter, who asked not to be named discussing private matters. Bloomberg/ Financial Post
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Indonesia’s 50% Biodiesel Program Becomes Global Model, Energy Official Says
Jakarta. Indonesia’s planned rollout of a 50% biodiesel blend for vehicles and industrial use is expected to become the first program of its kind in the world and is already drawing interest from other countries seeking to study and replicate the model, a senior Energy Ministry official said.
The initiative, known as B50, is scheduled to be implemented on July 1 and is currently undergoing road trials using diesel-powered vehicles. Testing has now entered a new phase involving diesel rail operations.
Eniya Listiyani Dewi, director general of renewable energy with the ministry, said Indonesia began developing biodiesel blending programs around 15 years ago and is now successfully using a 40% biodiesel mix without major issues.
“There are no technical references we can access. We are moving forward without an example to follow, and that is something we are proud of,” Eniya said.
“Many countries are now coming to us and making contact to learn how to develop B50, because there is no other reference besides Indonesia,” she added, without naming the countries involved.
Testing in the railway sector will begin with diesel generators serving the Yogyakarta–Jakarta route, followed by trials using diesel locomotives.
The rail generator trial will run for 2,400 operating hours.
After that, locomotive testing will be conducted on the Surabaya–Jakarta route over six months.
“The final phase of B50 railway testing is expected in October 2026. We are conducting trials under real operating conditions so we can see the actual results,” Eniya said. Jakarta Globe
--------
Energy Transition & Sustainability
Indonesia’s Biodiesel Shift; Disruptions to Asian Oil; and China’s Dual Industrial Mandate
Indonesia to stop diesel imports as it shifts to 50% biodiesel blend: Minister
Indonesia will stop importing subsidized low-grade diesel fuel from July 1 as the government enforces its B50 biodiesel program, which requires a 50% biodiesel blend, according to Agriculture Minister Andi Amran Sulaiman.
"We will no longer import Solar starting July 1, when B50 takes effect,” Amran said April 19. “This is Indonesia's future energy because the source comes from palm oil." Solar is the Indonesian name for subsidized automotive diesel fuel, primarily used for public transport and small vehicles.
Indonesia is the world's largest producer and supplier of palm oil and has a 40% biodiesel mandate, also known as B40. In 2026, the country is fast-tracking biofuel mandates in the interest of energy security, as its energy subsidy bill has surged since April due to the ongoing war in the Middle East. SP Global
--------
Expert Explains: Why Indonesia’s new biofuel push could make cooking oil expensive in India
India imports around USD 8.5 billion of palm oil, and more than half of this comes from Indonesia, which now wants to use more of it to make fuel. Here's how India will be impacted.
Amid the surge in oil prices because of the Iran war, Indonesia has announced the roll-out of the biofuel B50, a blend of 50% palm oil-based biodiesel and 50% conventional diesel. The fuel is being tested and should be in use by July. For India, which relies heavily on Indonesian palm oil imports, this could mean tighter supply and pricier cooking oil back home. Prerna Prabhakar, a Fellow at the Centre for Social and Economic Progress, explains what Indonesia is doing and how it will impact India.
What’s driving Indonesia’s push for B50?
Indonesia’s net imports of crude oil stood at around USD 7.8 billion as of 2025. The proposed B50 biodiesel programme aims to partially substitute these imports with palm oil-based fuel. This policy push comes amid heightened geopolitical uncertainties and a recent surge in global oil prices, which have crossed $100 per barrel in recent days. Indian Express
--------
Deforestation is surging in Indonesia
Indonesia’s forests, long held up as a case of tentative progress, are again under pressure. New analysis shows deforestation rose sharply in 2025, reversing several years of decline and returning to levels not seen in nearly a decade, reports Mongabay’s Hans Nicholas Jong.
Auriga Nusantara, an Indonesian NGO, estimates that more than 430,000 hectares (1.1 million acres) were cleared last year, a jump of 66% from 2024. The increase follows a period when forest loss had fallen steadily, reaching a low in 2021 after a series of policy interventions and tighter oversight. Since then, losses have climbed each year, with 2025 marking a clear break from the earlier trend. Mongabay
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Malaysia, EU in final stage of signing free trade agreement
BANDAR SERI BEGAWAN (April 27): Malaysia and the European Union (EU) are now in the final stage of signing a Free Trade Agreement (FTA) as well as finalising a comprehensive partnership aimed at strengthening economic cooperation and bilateral relations.
Foreign Minister Datuk Seri Mohamad Hasan said the positive development is driven by the EU, which now views Southeast Asia as a strategic and important bloc following unilateral tariffs imposed by the US and instability resulting from the Russia-Ukraine conflict.
Without specifying a timeline, he said Malaysia wants to finalise the agreement as soon as possible so that it can act as a catalyst to boost trade between Malaysia and the EU.
“I also mentioned this earlier during the meeting with EU representatives,” he told Bernama and RTM after holding a bilateral meeting with the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, on the sidelines of the 25th Asean-EU Ministerial Meeting (AEMM) here on Monday.
On Sept 25 last year, EU Trade Commissioner Maroš Šefcovic was reported to have said that the Malaysia-EU FTA is expected to be finalised this year, with trade between Malaysia and Europe, which reached €46 billion, expected to grow rapidly once the agreement is implemented.
Mohamad said that during the meeting with Kallas, he also raised the issue of the strong anti-palm oil campaign in Europe and rejected the ongoing anti-palm oil campaigns being actively promoted in countries in the region.
He stressed that the campaign is not based on scientific evidence but is instead driven by lobbyists from competing oil industries in neighbouring countries.
“I said that it is unfair because labelling food as containing palm oil clearly violates trade ethics,” he said.
According to him, Kallas understood and agreed with the basis of Malaysia’s arguments and expressed the EU’s willingness to help address the unfair campaign.
Touching on the EU Deforestation Regulation (EUDR), Mohamad urged the EU not to equate Malaysia’s forest sustainability standards with practices in other countries.
“More than 55% of our land is still covered by tropical forests, and we do not destroy forests to plant oil palm,” he stressed.
He emphasised that the majority of Malaysia’s palm oil industry is professionally managed by large plantation companies that fully comply with the Malaysian Sustainable Palm Oil (MSPO) standards.
In this regard, he called on the EU to conduct a detailed assessment of the sustainable management of oil palm estates in Malaysia, which are recognised as having high standards, before imposing any discriminatory measures.
Meanwhile, Mohamad said Malaysia’s current focus is on exporting processed palm oil with higher added value, rather than merely exporting crude palm oil.
He said processed palm oil is not only used as cooking oil but is also widely utilised across various downstream industries, including chocolate manufacturing.
“The European Union is a major importer of processed palm oil. Therefore, this is a profitable market for us, and that is why we must firmly counter this anti-palm oil campaign,” he said.
He added that with continuous clarification, Malaysia hopes the EU will better understand the actual practices in its palm oil industry and no longer protect anti-palm oil lobbyists who could affect international trade value. Bernama/ The Edge
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April 27, 2026
Malaysia accelerates B15 biodiesel for energy security
KUALA LUMPUR – Malaysia is accelerating the implementation of its B15 biodiesel programme as part of a broader strategy to strengthen national energy security.
As reported by The Edge Malaysia on Friday (24/4), the policy will be supported by the development of a biofuel hub in the Pengerang Industrial Area, Johor.
Economy minister Akmal Nasrullah Mohd Nasir said the move is part of a wider effort to mitigate risks of supply chain disruption stemming from geopolitical tensions, rising input costs and global trade uncertainty.
The B15 programme is a government policy to increase the biodiesel blend to 15% palm oil-based fuel (palm methyl ester) and 85% fossil diesel. Implementation will be carried out in stages, starting from the current B12 level.
Beyond enhancing energy security, the policy is also intended to absorb domestic palm oil production, a key factor in maintaining stability in Malaysia’s palm oil industry.
The Pengerang area has become a major energy industry hub, home to the Pengerang Integrated Complex and All Cosmos Industries Sdn Bhd.
The complex has a refining capacity of up to 300,000 barrels per day and produces more than 3.3 million tonnes of petrochemical output annually.
This infrastructure underpins domestic energy supply while supporting downstream industries such as plastics manufacturing and value-added exports.
Meanwhile, the domestic fertiliser sector continues to face pressure from raw material volatility and rising logistics costs.
The government is promoting several measures, including diversifying feedstock sources, improving production efficiency, and expanding capacity to meet domestic demand.
Adoption of bio-organic fertilisers is also being encouraged to reduce reliance on imports and ensure supply resilience during periods of global shortages.
ACI’s production model, which combines 20% bio-organic and 80% conventional fertiliser, is seen as a more balanced and sustainable approach.
Malaysia’s push to accelerate B15 reflects a broader shift in energy policy towards a more self-reliant model based on domestic resources.
For investors and industry players, key implications include rising domestic demand for crude palm oil, structural tailwinds for the biofuel and petrochemical sectors, and a growing policy focus on energy security amid global volatility.
Over the longer term, integration across energy, agriculture and downstream industries is expected to be critical in sustaining economic stability and enhancing Malaysia’s export competitiveness. IDN Financials
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Biodiesel supplementary energy security buffer, not permanent hedge against diesel import risk
KUALA LUMPUR (April 27): Biodiesel should be viewed as a supplementary energy security buffer, rather than a permanent or complete hedge against imported diesel risk, said CIMB Securities.
In its Malaysia ESG Monitor: April 2026 report on Monday, CIMB Securities said biodiesel helps reduce reliance on imported diesel by leveraging Malaysia’s domestic palm oil supply, strengthening energy security, particularly during disruptions to key routes such as the Strait of Hormuz.
“The government believes that an increase in biodiesel usage will help extend the availability of national diesel supply, supported by biofuel mitigation plans, phased upgrades of 20 per cent biodiesel (B20) and B30 depots under the 13th Malaysia Plan (13MP), and preparations for a B30 mandate for the commercial and public transport sectors,” it said.
CIMB Securities opined that wider adoption of higher blends (B20/B30) requires significant upgrades to storage, logistics, and distribution infrastructure, while compatibility across all diesel engines remains uneven.
“In addition, biodiesel costs are linked to crude palm oil (CPO) prices, which can be volatile,” it said.
CIMB Securities added that infrastructure would be a critical factor in scaling up biodiesel in Malaysia, as higher blending mandates require more than just sufficient supply.
“Malaysia’s B20 rollout remains limited to Langkawi, Labuan, and Sarawak, and the government has previously indicated that about RM643 million is needed to expand B20 infrastructure nationwide,” it said.
On April 14, 2026, the Malaysian government announced that it agreed to raise the current 10% biodiesel B10 mandate for the transportation sector to B15, beginning with an initial rollout of B12, as it seeks alternative fuel sources to support energy security amid the ongoing West Asia conflict.
Meanwhile, CIMB Securities said the plastic industry faced an immediate impact due to the ongoing conflict in West Asia, as Asia’s petrochemical system is structurally dependent on Middle Eastern feedstocks, with around 60%–70% of naphtha supply exposed to disruptions in the Strait of Hormuz.
It noted any disruption in the Strait of Hormuz would also affect about 16% of global oil products trade, with particularly severe implications for liquified petroleum gas (LPG) and naphtha.
On April 17, the Malaysian Plastics Manufacturer Association (MPMA) said it expects the plastic manufacturing industry to remain volatile in the near-to-medium term due to oil price spikes driven by the West Asia conflict and supply disruptions.
“This tightens petrochemical feedstock availability, leading to production delays, margin compression, and potential shortages and inflation across key downstream sectors, as resin prices have surged by over 100% to above US$1,500–2,000 (US$1 = RM3.96) per tonne with additional surcharges,” CIMB Securities added. KLSE Screener
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Pakistan’s reliance on palm oil continues to be a heavy burden on our food import bill. Can something be done about it?
Palm oil has long been a basic caloric input in the average Pakistani diet and it is all imported from Malaysia and Indonesia. There are ways to reduce the over-reliance
Yet again has our food imports bill risen. And yet again our food exports. In the first nine months of the current fiscal year, compared to the same period last year, the former increased by 15 percent to USD 7.09 billion, while the latter plummeted by 34 percent to USD 3.8 billion. The food trade deficit by the end of this period stood at USD 3.29 billion.
The import pressure was led by the buying of palm oil, the import value of which in the 9-months amounted to USD 3.023 billion – almost 92 percent of the total food trade deficit. This was a 17.49 percent increase over the amount for the first 3 quarters of the previous fiscal year. If we look at the volumes, they too rose, by 12.81 percent to 2.8 million tonnes. Indonesia and Malaysia remained the top suppliers of this oil, so ubiquitous in Pakistani kitchens, albeit in an altered form.
And this is not simply the story of this year. Palm oil has been a major import item, ever present in huge bold lettering on the list of incoming items. In FY25, for instance, Pakistan imported a record-breaking 3.2 million tonnes of palm oil, worth USD 3.4 billion. This made Pakistan the fourth largest importer of palm oil in the world, trailing India, China, and the EU.
Pakistan’s image has traditionally been that of an agriculture-driven country. The kisaan has been the image we have liked most to project of ourselves, and the land – sohni dharti – has been a staple in our national imagination of ourselves. And not for no reason at all. In fact, agriculture remains the lifeblood of our economy, contributing 23.5 percent to our national GDP, and employing over 37 percent of our total workforce.
So, for a country that relies on production of crops and grows so many crops, why do we import so much palm oil? The short answer is that we don’t grow much of it at home. But why is that the case? Various efforts have been made to promote the cultivation of oilseeds for decades now, but inconsistent policies and the industry’s infrastructural deficiencies in Pakistan have meant that the cultivation of palm – along with other varieties of oilseeds – has failed to take any meaningful root. Profit Pakistan
Malaysia accelerates B15 biodiesel for energy security
KUALA LUMPUR – Malaysia is accelerating the implementation of its B15 biodiesel programme as part of a broader strategy to strengthen national energy security.
As reported by The Edge Malaysia on Friday (24/4), the policy will be supported by the development of a biofuel hub in the Pengerang Industrial Area, Johor.
Economy minister Akmal Nasrullah Mohd Nasir said the move is part of a wider effort to mitigate risks of supply chain disruption stemming from geopolitical tensions, rising input costs and global trade uncertainty.
The B15 programme is a government policy to increase the biodiesel blend to 15% palm oil-based fuel (palm methyl ester) and 85% fossil diesel. Implementation will be carried out in stages, starting from the current B12 level.
Beyond enhancing energy security, the policy is also intended to absorb domestic palm oil production, a key factor in maintaining stability in Malaysia’s palm oil industry.
The Pengerang area has become a major energy industry hub, home to the Pengerang Integrated Complex and All Cosmos Industries Sdn Bhd.
The complex has a refining capacity of up to 300,000 barrels per day and produces more than 3.3 million tonnes of petrochemical output annually.
This infrastructure underpins domestic energy supply while supporting downstream industries such as plastics manufacturing and value-added exports.
Meanwhile, the domestic fertiliser sector continues to face pressure from raw material volatility and rising logistics costs.
The government is promoting several measures, including diversifying feedstock sources, improving production efficiency, and expanding capacity to meet domestic demand.
Adoption of bio-organic fertilisers is also being encouraged to reduce reliance on imports and ensure supply resilience during periods of global shortages.
ACI’s production model, which combines 20% bio-organic and 80% conventional fertiliser, is seen as a more balanced and sustainable approach.
Malaysia’s push to accelerate B15 reflects a broader shift in energy policy towards a more self-reliant model based on domestic resources.
For investors and industry players, key implications include rising domestic demand for crude palm oil, structural tailwinds for the biofuel and petrochemical sectors, and a growing policy focus on energy security amid global volatility.
Over the longer term, integration across energy, agriculture and downstream industries is expected to be critical in sustaining economic stability and enhancing Malaysia’s export competitiveness. IDN Financials
--------
Biodiesel supplementary energy security buffer, not permanent hedge against diesel import risk
KUALA LUMPUR (April 27): Biodiesel should be viewed as a supplementary energy security buffer, rather than a permanent or complete hedge against imported diesel risk, said CIMB Securities.
In its Malaysia ESG Monitor: April 2026 report on Monday, CIMB Securities said biodiesel helps reduce reliance on imported diesel by leveraging Malaysia’s domestic palm oil supply, strengthening energy security, particularly during disruptions to key routes such as the Strait of Hormuz.
“The government believes that an increase in biodiesel usage will help extend the availability of national diesel supply, supported by biofuel mitigation plans, phased upgrades of 20 per cent biodiesel (B20) and B30 depots under the 13th Malaysia Plan (13MP), and preparations for a B30 mandate for the commercial and public transport sectors,” it said.
CIMB Securities opined that wider adoption of higher blends (B20/B30) requires significant upgrades to storage, logistics, and distribution infrastructure, while compatibility across all diesel engines remains uneven.
“In addition, biodiesel costs are linked to crude palm oil (CPO) prices, which can be volatile,” it said.
CIMB Securities added that infrastructure would be a critical factor in scaling up biodiesel in Malaysia, as higher blending mandates require more than just sufficient supply.
“Malaysia’s B20 rollout remains limited to Langkawi, Labuan, and Sarawak, and the government has previously indicated that about RM643 million is needed to expand B20 infrastructure nationwide,” it said.
On April 14, 2026, the Malaysian government announced that it agreed to raise the current 10% biodiesel B10 mandate for the transportation sector to B15, beginning with an initial rollout of B12, as it seeks alternative fuel sources to support energy security amid the ongoing West Asia conflict.
Meanwhile, CIMB Securities said the plastic industry faced an immediate impact due to the ongoing conflict in West Asia, as Asia’s petrochemical system is structurally dependent on Middle Eastern feedstocks, with around 60%–70% of naphtha supply exposed to disruptions in the Strait of Hormuz.
It noted any disruption in the Strait of Hormuz would also affect about 16% of global oil products trade, with particularly severe implications for liquified petroleum gas (LPG) and naphtha.
On April 17, the Malaysian Plastics Manufacturer Association (MPMA) said it expects the plastic manufacturing industry to remain volatile in the near-to-medium term due to oil price spikes driven by the West Asia conflict and supply disruptions.
“This tightens petrochemical feedstock availability, leading to production delays, margin compression, and potential shortages and inflation across key downstream sectors, as resin prices have surged by over 100% to above US$1,500–2,000 (US$1 = RM3.96) per tonne with additional surcharges,” CIMB Securities added. KLSE Screener
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Pakistan’s reliance on palm oil continues to be a heavy burden on our food import bill. Can something be done about it?
Palm oil has long been a basic caloric input in the average Pakistani diet and it is all imported from Malaysia and Indonesia. There are ways to reduce the over-reliance
Yet again has our food imports bill risen. And yet again our food exports. In the first nine months of the current fiscal year, compared to the same period last year, the former increased by 15 percent to USD 7.09 billion, while the latter plummeted by 34 percent to USD 3.8 billion. The food trade deficit by the end of this period stood at USD 3.29 billion.
The import pressure was led by the buying of palm oil, the import value of which in the 9-months amounted to USD 3.023 billion – almost 92 percent of the total food trade deficit. This was a 17.49 percent increase over the amount for the first 3 quarters of the previous fiscal year. If we look at the volumes, they too rose, by 12.81 percent to 2.8 million tonnes. Indonesia and Malaysia remained the top suppliers of this oil, so ubiquitous in Pakistani kitchens, albeit in an altered form.
And this is not simply the story of this year. Palm oil has been a major import item, ever present in huge bold lettering on the list of incoming items. In FY25, for instance, Pakistan imported a record-breaking 3.2 million tonnes of palm oil, worth USD 3.4 billion. This made Pakistan the fourth largest importer of palm oil in the world, trailing India, China, and the EU.
Pakistan’s image has traditionally been that of an agriculture-driven country. The kisaan has been the image we have liked most to project of ourselves, and the land – sohni dharti – has been a staple in our national imagination of ourselves. And not for no reason at all. In fact, agriculture remains the lifeblood of our economy, contributing 23.5 percent to our national GDP, and employing over 37 percent of our total workforce.
So, for a country that relies on production of crops and grows so many crops, why do we import so much palm oil? The short answer is that we don’t grow much of it at home. But why is that the case? Various efforts have been made to promote the cultivation of oilseeds for decades now, but inconsistent policies and the industry’s infrastructural deficiencies in Pakistan have meant that the cultivation of palm – along with other varieties of oilseeds – has failed to take any meaningful root. Profit Pakistan
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April 26, 2026
Malaysia braces for shockwaves as Middle East tensions threaten global trade lifelines
KUALA LUMPUR: Malaysia is moving to shore up its economic resilience as geopolitical tensions in the Middle East expose critical vulnerabilities across key industries, from semiconductors to commodities.
The moves come following concerns over not just the prolonged closure of the Strait of Hormuz, but also the potential closure of the Bab el-Mandeb Strait—a key gateway to the Red Sea shipping route.
The strait, also known as the "Gate of Tears", is a strategic waterway that connects the Gulf of Aden to the Red Sea and ultimately the Suez Canal.
-Advertisement-
The Suez Canal handles about 20 per cent of global container trade and around 40 per cent of Asia-Europe shipments, making the corridor one of the world's most critical maritime arteries.
Previously, the Houthis in Yemen had threatened to close off the strait in response to United States-Israeli attacks on Iran.
Alarms were raised last Sunday when Houthi Deputy Foreign Minister Hussein al-Ezzi, in a post on X, again warned that the strait could be shut if US President Donald Trump and what he termed the "complicit world" do not end "all practices and policies that obstruct peace".
"If Sana'a decides to close the Bab el-Mandeb, then all of mankind and jinn will be utterly powerless to open it," he wrote.
The Investment, Trade and Industry Ministry (Miti) has flagged risks in the supply of essential inputs such as helium — vital for chipmaking — amid disruptions along major shipping chokepoints.
Rising fuel costs and logistical bottlenecks also threaten to cause ripples through production chains.
The ministry is encouraging semiconductor players to diversify supply sources and build strategic stockpiles.
It said it has identified upstream vulnerabilities in the supply of helium — a critical inert gas used in semiconductor manufacturing — with Qatar accounting for roughly 33 per cent of global production.
The ministry said ongoing disruptions, including blockages affecting key maritime routes, have impacted supply chains and heightened risks for industries reliant on such inputs.
"Based on engagements with industry, affected Malaysian companies have already begun identifying and qualifying alternative sources from other regions as mitigation measures.
"Miti continues to encourage broader contingency measures, including strategic stockpiling and supplier diversification, and is assessing further policy support where needed," it told the New Sunday Times.
SEMICONDUCTOR INDUSTRY NOT ISOLATED
The ministry said it was monitoring the evolving geopolitical situation in the Middle East, particularly disruptions at chokepoints such as the Bab el-Mandeb and the Strait of Hormuz, which have complicated global trade flows.
These disruptions, it said, have created a more challenging logistics environment, with rising oil prices driving up transportation and production costs across supply chains.
While finished semiconductor components are predominantly air-freighted due to their high value-to-weight ratio, the ministry said the sector was not entirely insulated from such disruptions. NST
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A palm oil partnership built on shared responsibility between Malaysia and India
India and Malaysia set an example of how prosperity is driven by cooperation, responsibility and long-term vision
India’s journey towards self-reliance is not a retreat from global engagement, but a reaffirmation of its commitment to shared prosperity and responsible economic integration. Anchored in the guiding principle of Vasudhaiva Kutumbakam (the World is One Family), India’s vision of Atmanirbhar Bharat seeks to build a self-reliant and resilient economy that remains firmly connected to global value chains.
Within this framework, India’s efforts to strengthen food and nutritional security support both domestic production and global market stability. By building local capacity while sustaining trusted international partnerships, India contributes to price stability and long-term economic resilience.
Malaysia is a long-standing and committed partner in India’s journey to self-reliance. As a reliable supplier of sustainable palm oil, Malaysia continues to support India’s edible oil requirements. The Hindu Businessline
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Plantation and Commodities Ministry studying carbon credit mechanisms within MSPO framework
KUALA LUMPUR (April 26): The Plantation and Commodities Ministry (KPK) is exploring the phased development of carbon-related mechanisms through the Malaysian Sustainable Palm Oil (MSPO) certification, including assessing the suitability of carbon credit models aligned with the country’s palm oil industry.
Minister Datuk Seri Dr Noraini Ahmad said this effort will also involve studying the institutional governance; monitoring, reporting and verification (MRV) and data ownership aspects; as well as the value creation potential for industry players.
“This is to ensure that any mechanism developed is credible, trusted by the market, and practical to implement on the ground without compromising the foundation and credibility of the MSPO certification, particularly when it comes to smallholders,” she told Bernama.
In principle, Noraini said the ministry believes that efforts to strengthen sustainability elements in MSPO, including the reduction, management, and reporting of carbon emissions, are aligned with global market requirements, as well as Malaysia’s commitments to the climate change agenda.
“In this context, the proposal to integrate carbon credit elements (within the MSPO) is seen as having value added potential to the industry.
“However, its implementation requires careful and phased study and evaluation, particularly in terms of data readiness, the robustness of measurement systems, MRV, and suitability with the local industry structure, including smallholders,” she said.
Meanwhile, she said KPK’s current priority is to strengthen the foundation of the existing MSPO certification implementation.
This includes improving greenhouse gas (GHG) calculation and reporting, enhancing data transparency and integrity, and strengthening the system for supply chain traceability.
“Ultimately, any MSPO development, including the exploration of carbon credit elements, will be carried out based on a comprehensive study and evaluation.
“The implementation will involve engagement with relevant ministries and agencies, industry players, experts, and international partners to ensure a balance between market competitiveness, global compliance requirements, and national interest,” she explained.
In December last year, Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek proposed the introduction of a carbon enhancement protocol into the MSPO certification, effectively transforming it into MSPO 3.0.
He said MSPO 3.0 would integrate carbon accounting and crediting mechanisms into the certification process.
Ahmad Shabeery also proposed the establishment of a national task force, led by the Ministry of Natural Resources and Environmental Sustainability, to ensure Malaysia develops an oil palm-based carbon credit framework. The Edge
Malaysia braces for shockwaves as Middle East tensions threaten global trade lifelines
KUALA LUMPUR: Malaysia is moving to shore up its economic resilience as geopolitical tensions in the Middle East expose critical vulnerabilities across key industries, from semiconductors to commodities.
The moves come following concerns over not just the prolonged closure of the Strait of Hormuz, but also the potential closure of the Bab el-Mandeb Strait—a key gateway to the Red Sea shipping route.
The strait, also known as the "Gate of Tears", is a strategic waterway that connects the Gulf of Aden to the Red Sea and ultimately the Suez Canal.
-Advertisement-
The Suez Canal handles about 20 per cent of global container trade and around 40 per cent of Asia-Europe shipments, making the corridor one of the world's most critical maritime arteries.
Previously, the Houthis in Yemen had threatened to close off the strait in response to United States-Israeli attacks on Iran.
Alarms were raised last Sunday when Houthi Deputy Foreign Minister Hussein al-Ezzi, in a post on X, again warned that the strait could be shut if US President Donald Trump and what he termed the "complicit world" do not end "all practices and policies that obstruct peace".
"If Sana'a decides to close the Bab el-Mandeb, then all of mankind and jinn will be utterly powerless to open it," he wrote.
The Investment, Trade and Industry Ministry (Miti) has flagged risks in the supply of essential inputs such as helium — vital for chipmaking — amid disruptions along major shipping chokepoints.
Rising fuel costs and logistical bottlenecks also threaten to cause ripples through production chains.
The ministry is encouraging semiconductor players to diversify supply sources and build strategic stockpiles.
It said it has identified upstream vulnerabilities in the supply of helium — a critical inert gas used in semiconductor manufacturing — with Qatar accounting for roughly 33 per cent of global production.
The ministry said ongoing disruptions, including blockages affecting key maritime routes, have impacted supply chains and heightened risks for industries reliant on such inputs.
"Based on engagements with industry, affected Malaysian companies have already begun identifying and qualifying alternative sources from other regions as mitigation measures.
"Miti continues to encourage broader contingency measures, including strategic stockpiling and supplier diversification, and is assessing further policy support where needed," it told the New Sunday Times.
SEMICONDUCTOR INDUSTRY NOT ISOLATED
The ministry said it was monitoring the evolving geopolitical situation in the Middle East, particularly disruptions at chokepoints such as the Bab el-Mandeb and the Strait of Hormuz, which have complicated global trade flows.
These disruptions, it said, have created a more challenging logistics environment, with rising oil prices driving up transportation and production costs across supply chains.
While finished semiconductor components are predominantly air-freighted due to their high value-to-weight ratio, the ministry said the sector was not entirely insulated from such disruptions. NST
--------
A palm oil partnership built on shared responsibility between Malaysia and India
India and Malaysia set an example of how prosperity is driven by cooperation, responsibility and long-term vision
India’s journey towards self-reliance is not a retreat from global engagement, but a reaffirmation of its commitment to shared prosperity and responsible economic integration. Anchored in the guiding principle of Vasudhaiva Kutumbakam (the World is One Family), India’s vision of Atmanirbhar Bharat seeks to build a self-reliant and resilient economy that remains firmly connected to global value chains.
Within this framework, India’s efforts to strengthen food and nutritional security support both domestic production and global market stability. By building local capacity while sustaining trusted international partnerships, India contributes to price stability and long-term economic resilience.
Malaysia is a long-standing and committed partner in India’s journey to self-reliance. As a reliable supplier of sustainable palm oil, Malaysia continues to support India’s edible oil requirements. The Hindu Businessline
--------
Plantation and Commodities Ministry studying carbon credit mechanisms within MSPO framework
KUALA LUMPUR (April 26): The Plantation and Commodities Ministry (KPK) is exploring the phased development of carbon-related mechanisms through the Malaysian Sustainable Palm Oil (MSPO) certification, including assessing the suitability of carbon credit models aligned with the country’s palm oil industry.
Minister Datuk Seri Dr Noraini Ahmad said this effort will also involve studying the institutional governance; monitoring, reporting and verification (MRV) and data ownership aspects; as well as the value creation potential for industry players.
“This is to ensure that any mechanism developed is credible, trusted by the market, and practical to implement on the ground without compromising the foundation and credibility of the MSPO certification, particularly when it comes to smallholders,” she told Bernama.
In principle, Noraini said the ministry believes that efforts to strengthen sustainability elements in MSPO, including the reduction, management, and reporting of carbon emissions, are aligned with global market requirements, as well as Malaysia’s commitments to the climate change agenda.
“In this context, the proposal to integrate carbon credit elements (within the MSPO) is seen as having value added potential to the industry.
“However, its implementation requires careful and phased study and evaluation, particularly in terms of data readiness, the robustness of measurement systems, MRV, and suitability with the local industry structure, including smallholders,” she said.
Meanwhile, she said KPK’s current priority is to strengthen the foundation of the existing MSPO certification implementation.
This includes improving greenhouse gas (GHG) calculation and reporting, enhancing data transparency and integrity, and strengthening the system for supply chain traceability.
“Ultimately, any MSPO development, including the exploration of carbon credit elements, will be carried out based on a comprehensive study and evaluation.
“The implementation will involve engagement with relevant ministries and agencies, industry players, experts, and international partners to ensure a balance between market competitiveness, global compliance requirements, and national interest,” she explained.
In December last year, Federal Land Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek proposed the introduction of a carbon enhancement protocol into the MSPO certification, effectively transforming it into MSPO 3.0.
He said MSPO 3.0 would integrate carbon accounting and crediting mechanisms into the certification process.
Ahmad Shabeery also proposed the establishment of a national task force, led by the Ministry of Natural Resources and Environmental Sustainability, to ensure Malaysia develops an oil palm-based carbon credit framework. The Edge
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April 25, 2026
Potential B15-B30 push could reshape Malaysia’s palm oil demand
A potential shift towards higher palm oil-based biodiesel blends of 15%-30% (B15-B30) could reshape Malaysian palm oil demand dynamics, with consumption projected to rise between 380,000 tonnes and 1.5M tonnes, New Straits Times (NST) wrote.
This volume would be equivalent to 1.8%-7.4% of national crude palm oil (CPO) supply, according to CIMB Securities analyst Ivy Ng Lee Fang.
The step-up in blending mandates would mark a shift for the industry, exceeding increases seen under current policies, Fang was quoted as saying.
Malaysia plans to lift its blending mandate from B10 to B15, with an initial implementation of B12, as part of efforts to enhance energy security and reduce reliance on fossil fuels, according to the report.
Economy Minister Akmal Nasrullah Mohd Nasir said the transition would not involve additional costs, as it would use existing blending infrastructure under the current B10 programme.
The move followed discussions at the National Economic Action Council and formed part of a wider strategy to strengthen domestic diesel supply, NST wrote.
The government also outlined a biofuel roadmap that included phased depot upgrades to support higher blending rates of up to B20 and B30, alongside plans to introduce a B30 mandate for the commercial and public transport sectors.
Malaysia’s policy shift comes against a backdrop of a sharp rise in diesel prices, driven by ongoing tensions in the Middle East.
The near-term impact from the B12 implementation was unlikely to be significant, as the initial roll-out would only lead to a gradual increase in palm oil demand, Fang added, noting the current B10 programme consumed about 750,000 tonnes of palm oil/year at full implementation.
The planned rollout of B12 was expected to lift usage by a further 150,000-900,000 tonnes, or approximately 0.7% of Malaysia's projected 2025 output.
However, the impact would increase at higher blend levels, with B15-B30 likely to drive a step-change in demand, tightening supply balances and potentially influencing price dynamics across the sector, NST wrote.
In 2025, Malaysia produced 975,207 tonnes of biodiesel and exported 57,149 tonnes, suggesting domestic consumption of 918,058 tonnes.
Despite this, as installed biodiesel capacity stood at 2.36M tonnes/year – more than double current production – there was room for expansion if higher mandates were implemented, the report said. OFI Magazine
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Palm oil finds new buyers as Europe steps back
KUALA LUMPUR: Europe's regulatory push under the EU Deforestation Regulation (EUDR) is weighing on palm oil demand, but Middle Eastern and Asian markets are increasingly absorbing the surplus without similar sustainability requirements.
Industry observers said the shift is reshaping Malaysia's export map, with European buying slowing under tighter compliance rules while growth markets elsewhere expand their intake, as prices hover around RM4,500 a tonne.
"That is gradually reshaping the geographic orientation of Malaysian palm oil exports. Less Europe, more Asia and the Gulf," ESG in Malaysia executive director Dr Harald Sippel told Business Times.
The shift comes as Malaysia's palm oil market tightens sharply. Stocks fell 16.1 per cent in March to 2.26 million tonnes after exports rose to 1.55 million tonnes, outpacing production of 1.37 million tonnes, according to the Malaysian Palm Oil Council (MPOC).
First-quarter exports surged 29.1 per cent year-on-year, with North Africa leading growth at 94 per cent, followed by South Asia at 74 per cent, other Europe and Central Asia at 47 per cent, Asia Pacific at 24 per cent, and Sub-Saharan Africa at 20 per cent.
The figures suggest Malaysian palm oil is becoming less dependent on Europe, with emerging demand corridors increasingly taking up the slack.
Sippel said the trend reflects a deeper structural adjustment in global palm oil trade rather than a simple fall in overall demand.
While European imports soften under stricter rules, consumption in emerging markets continues to rise, driven by population growth and palm oil's entrenched role in regional food systems.
North Africa, South Asia and the Asia Pacific are ramping up purchases, attracted by competitive pricing and the need to secure stable edible oil supplies.
The Middle East, in particular, has emerged as an increasingly important destination as buyers diversify sourcing channels.
Where European importers demand rigorous sustainability credentials, many Asian and Gulf buyers are prioritising price and availability over certification. That has helped keep Malaysian exports buoyant even as regulatory barriers rise in the West.
Yet Europe's influence has not disappeared. The EUDR is reshaping industry practices by forcing producers seeking continued access to invest in traceability systems, certification and documentation.
The burden falls unevenly, especially on smaller producers and smallholders that often lack the capital and infrastructure to comply at scale.
Larger plantation groups, by contrast, are better placed to absorb those costs, potentially concentrating the supply of certified sustainable palm oil in fewer hands over time.
As European demand softens, Sippel said supplies of EUDR-compliant palm oil may tighten, pushing premiums higher for fully traceable products.
For producers able to meet the standards, Europe could remain a lucrative, if smaller, market. But Sippel cautioned of a longer-term concern for Malaysia.
"This is manageable in volume terms, but it does raise longer-term questions about market diversification risk and the country's strategic interest in resolving rather than simply deferring the EUDR compliance pathway," he said.
Europe's retreat is being offset by surging demand elsewhere, but its regulatory framework continues to cast a long shadow over how palm oil is produced, certified and traded worldwide.
For Malaysia, the path forward will require balancing cost pressures, preserving market access and safeguarding competitiveness in an industry where the rules are being rewritten in real time. NST
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German Bundestag approves GHG quota rise to 65% by 2040
The German Bundestag has adopted a revised government bill requiring fuel suppliers to reduce the carbon intensity of their fuels by 65% by 2040.
Therefore, the greenhouse gas reduction (GHG) quota will be gradually strengthened from the current level of 10.6%.
The German government originally planned to increase the quota to 59% by 2040. The target quota, however, was amended to 65% in the legislative process. The revised draft law was supported by the governing parliamentary groups CDU/CSU and SPD. The opposition parties AfD, Alliance 90/The Greens, and The Left voted against it.
The GHG quota is the central legal instrument in Germany for increasing the share of renewable energy in transport. The quota can be achieved via sustainable biofuels, fuels based on green hydrogen, or electricity for electric vehicles (EV).
To meet the target, fuel suppliers currently can use up to 4.4% of conventional biofuels, which are produced from food and feed crops. This share will be raised to 5.8% by 2032 under the new law. The increase is only moderate to avoid competition between food and fuel, the ministry of the environment said.
At the same time, the sub-quota for renewable fuels of non-biological origin (RFNBOs), such as green hydrogen, will increase more quickly than previously planned. The share of these products will rise to at least 10% by 2040. Therefore, the GHG quota becomes “the strongest driver for scaling up the hydrogen economy for at least the next five years,” the ministry said. The minimum obligation of 1.5% in 2030 is expected to incentivise around 2 GW of electrolysis capacity, it added.
Advanced biofuels are produced from residues such as straw, manure, or algae biomass. The quota for these advanced biofuels will be doubled from 1% in 2026 to 2% and will then rise annually to 9% in 2040. From 2027 onwards, palm oil residues will no longer be used for biofuels as palm oil production is associated with significant environmental damage.
Electricity from biogas will be eligible for crediting toward the GHG quota from January 2028. This means biogas plants can supply electricity for EV charging stations.
To enter into force, the law still requires approval by the Bundesrat, the other main legislative body in Germany. Renewables Now
Potential B15-B30 push could reshape Malaysia’s palm oil demand
A potential shift towards higher palm oil-based biodiesel blends of 15%-30% (B15-B30) could reshape Malaysian palm oil demand dynamics, with consumption projected to rise between 380,000 tonnes and 1.5M tonnes, New Straits Times (NST) wrote.
This volume would be equivalent to 1.8%-7.4% of national crude palm oil (CPO) supply, according to CIMB Securities analyst Ivy Ng Lee Fang.
The step-up in blending mandates would mark a shift for the industry, exceeding increases seen under current policies, Fang was quoted as saying.
Malaysia plans to lift its blending mandate from B10 to B15, with an initial implementation of B12, as part of efforts to enhance energy security and reduce reliance on fossil fuels, according to the report.
Economy Minister Akmal Nasrullah Mohd Nasir said the transition would not involve additional costs, as it would use existing blending infrastructure under the current B10 programme.
The move followed discussions at the National Economic Action Council and formed part of a wider strategy to strengthen domestic diesel supply, NST wrote.
The government also outlined a biofuel roadmap that included phased depot upgrades to support higher blending rates of up to B20 and B30, alongside plans to introduce a B30 mandate for the commercial and public transport sectors.
Malaysia’s policy shift comes against a backdrop of a sharp rise in diesel prices, driven by ongoing tensions in the Middle East.
The near-term impact from the B12 implementation was unlikely to be significant, as the initial roll-out would only lead to a gradual increase in palm oil demand, Fang added, noting the current B10 programme consumed about 750,000 tonnes of palm oil/year at full implementation.
The planned rollout of B12 was expected to lift usage by a further 150,000-900,000 tonnes, or approximately 0.7% of Malaysia's projected 2025 output.
However, the impact would increase at higher blend levels, with B15-B30 likely to drive a step-change in demand, tightening supply balances and potentially influencing price dynamics across the sector, NST wrote.
In 2025, Malaysia produced 975,207 tonnes of biodiesel and exported 57,149 tonnes, suggesting domestic consumption of 918,058 tonnes.
Despite this, as installed biodiesel capacity stood at 2.36M tonnes/year – more than double current production – there was room for expansion if higher mandates were implemented, the report said. OFI Magazine
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Palm oil finds new buyers as Europe steps back
KUALA LUMPUR: Europe's regulatory push under the EU Deforestation Regulation (EUDR) is weighing on palm oil demand, but Middle Eastern and Asian markets are increasingly absorbing the surplus without similar sustainability requirements.
Industry observers said the shift is reshaping Malaysia's export map, with European buying slowing under tighter compliance rules while growth markets elsewhere expand their intake, as prices hover around RM4,500 a tonne.
"That is gradually reshaping the geographic orientation of Malaysian palm oil exports. Less Europe, more Asia and the Gulf," ESG in Malaysia executive director Dr Harald Sippel told Business Times.
The shift comes as Malaysia's palm oil market tightens sharply. Stocks fell 16.1 per cent in March to 2.26 million tonnes after exports rose to 1.55 million tonnes, outpacing production of 1.37 million tonnes, according to the Malaysian Palm Oil Council (MPOC).
First-quarter exports surged 29.1 per cent year-on-year, with North Africa leading growth at 94 per cent, followed by South Asia at 74 per cent, other Europe and Central Asia at 47 per cent, Asia Pacific at 24 per cent, and Sub-Saharan Africa at 20 per cent.
The figures suggest Malaysian palm oil is becoming less dependent on Europe, with emerging demand corridors increasingly taking up the slack.
Sippel said the trend reflects a deeper structural adjustment in global palm oil trade rather than a simple fall in overall demand.
While European imports soften under stricter rules, consumption in emerging markets continues to rise, driven by population growth and palm oil's entrenched role in regional food systems.
North Africa, South Asia and the Asia Pacific are ramping up purchases, attracted by competitive pricing and the need to secure stable edible oil supplies.
The Middle East, in particular, has emerged as an increasingly important destination as buyers diversify sourcing channels.
Where European importers demand rigorous sustainability credentials, many Asian and Gulf buyers are prioritising price and availability over certification. That has helped keep Malaysian exports buoyant even as regulatory barriers rise in the West.
Yet Europe's influence has not disappeared. The EUDR is reshaping industry practices by forcing producers seeking continued access to invest in traceability systems, certification and documentation.
The burden falls unevenly, especially on smaller producers and smallholders that often lack the capital and infrastructure to comply at scale.
Larger plantation groups, by contrast, are better placed to absorb those costs, potentially concentrating the supply of certified sustainable palm oil in fewer hands over time.
As European demand softens, Sippel said supplies of EUDR-compliant palm oil may tighten, pushing premiums higher for fully traceable products.
For producers able to meet the standards, Europe could remain a lucrative, if smaller, market. But Sippel cautioned of a longer-term concern for Malaysia.
"This is manageable in volume terms, but it does raise longer-term questions about market diversification risk and the country's strategic interest in resolving rather than simply deferring the EUDR compliance pathway," he said.
Europe's retreat is being offset by surging demand elsewhere, but its regulatory framework continues to cast a long shadow over how palm oil is produced, certified and traded worldwide.
For Malaysia, the path forward will require balancing cost pressures, preserving market access and safeguarding competitiveness in an industry where the rules are being rewritten in real time. NST
--------
German Bundestag approves GHG quota rise to 65% by 2040
The German Bundestag has adopted a revised government bill requiring fuel suppliers to reduce the carbon intensity of their fuels by 65% by 2040.
Therefore, the greenhouse gas reduction (GHG) quota will be gradually strengthened from the current level of 10.6%.
The German government originally planned to increase the quota to 59% by 2040. The target quota, however, was amended to 65% in the legislative process. The revised draft law was supported by the governing parliamentary groups CDU/CSU and SPD. The opposition parties AfD, Alliance 90/The Greens, and The Left voted against it.
The GHG quota is the central legal instrument in Germany for increasing the share of renewable energy in transport. The quota can be achieved via sustainable biofuels, fuels based on green hydrogen, or electricity for electric vehicles (EV).
To meet the target, fuel suppliers currently can use up to 4.4% of conventional biofuels, which are produced from food and feed crops. This share will be raised to 5.8% by 2032 under the new law. The increase is only moderate to avoid competition between food and fuel, the ministry of the environment said.
At the same time, the sub-quota for renewable fuels of non-biological origin (RFNBOs), such as green hydrogen, will increase more quickly than previously planned. The share of these products will rise to at least 10% by 2040. Therefore, the GHG quota becomes “the strongest driver for scaling up the hydrogen economy for at least the next five years,” the ministry said. The minimum obligation of 1.5% in 2030 is expected to incentivise around 2 GW of electrolysis capacity, it added.
Advanced biofuels are produced from residues such as straw, manure, or algae biomass. The quota for these advanced biofuels will be doubled from 1% in 2026 to 2% and will then rise annually to 9% in 2040. From 2027 onwards, palm oil residues will no longer be used for biofuels as palm oil production is associated with significant environmental damage.
Electricity from biogas will be eligible for crediting toward the GHG quota from January 2028. This means biogas plants can supply electricity for EV charging stations.
To enter into force, the law still requires approval by the Bundesrat, the other main legislative body in Germany. Renewables Now
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April 24, 2026
Southeast Asian countries seek domestic fuels amid energy crunch
Southeast Asian countries are leaning harder on homegrown energy sources — from coal to palm oil and sugarcane — as soaring costs and supply risks make Middle Eastern oil and gas imports less viable.
The pivot is proving double-edged, analysts said. Surging demand is driving up prices of coal and biofuels, while renewed investment in coal plants threatens to derail each country's pledge to reduce emissions.
Indonesia, the world's largest thermal coal exporter, plans to raise coal output this year to boost state revenues amid rising coal prices.
Thailand will restart two decommissioned units at the coal-fired power plant in Lampang Province to contain rising electricity bills.
Philippine Energy Secretary Sharon Garin said the government is open to lifting the moratorium on building new coal-fired power plants.
For some members of the Association of Southeast Asian Nations, using more coal is "a short-term and readily available solution, but not the most environmentally friendly", said Priyanka Kishore, director and principal economist at the Singapore-based consultancy Asia Decoded.
Higher demand is also boosting global coal prices, Kishore said, adding that this would lead to higher electricity prices.
The benchmark Newcastle coal futures rose to $150 per metric ton on March 9, its highest level since November 2024, according to Bloomberg.
Rising prices prove that coal is not insulated from geopolitical shocks, according to global research organization Zero Carbon Analytics.
"Only renewables are immune to such immediate crises, as once installed, they do not require a constant supply of fuel to generate electricity," the nonprofit said in its latest report.
Khor Yu Leng, director of Segi Enam Advisors in Singapore, said the oil and gas supply crunch has put biofuels back in the spotlight.
Biofuels in spotlight
Vietnam is rolling out E10 gasoline — a blend containing 10 percent bioethanol — from April 30, about a month ahead of its previous June 1 target.
Malaysia is set to increase its biodiesel blend mandate from B10 — a blend containing 10 percent palm methyl ester — to B15, starting with an initial rollout of B12, a 12 percent blend.
Thai ethanol manufacturers are increasing production of gasohol E20 — a mix of gasoline and 20 percent ethanol — to serve growing local demand.
Khor of Segi Enam Advisors said high diesel prices will not necessarily make biodiesel a viable option for most motorists.
Palm oil mills already generate electricity from waste biomass, but grid rules and pricing keep that energy sidelined, she said.
She suggested that unlocking mill-based biomass into local networks could deliver quicker, more reliable energy security than chasing higher biofuel blends.
The increased demand for biofuels has likewise raised palm oil prices — a feedstock for biodiesel.
On March 6, the benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose by nearly 4 percent to 4,365 ringgit ($1,100) per ton. Malaysian palm oil futures were trading at over 4,500 ringgit per ton on Thursday. China Daily
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Ministry to modernise palm oil milling sector with technology, sustainable practices
KUALA LUMPUR: Plantation and Commodities Ministry will adopt technology and sustainable practices to enhance the competitiveness of the palm oil milling industry.
Its minister Datuk Seri Noraini Ahmad said the use of technology such as automation, data analytics and artificial intelligence can enhance operational efficiency, improve quality control, reduce operational disruptions and enable more proactive maintenance through data utilisation.
This commitment was demonstrated at the International Palm Oil Millers Conference 2026 (IPOMC 2026), hosted by the Incorporated Society of Planters from April 23-25.
Noraini said sustainability remains a priority through responsible resource management, improved energy efficiency and waste reduction.
"Compliance with standards such as the Malaysian Sustainable Palm Oil , as well as the management of food safety issues including 3-MCPD and glycidyl esters, is essential to ensure the industry's reputation is maintained and international market access remains secure," she said in a statement.
The ministry will also continue investments in education, training and leadership development to ensure the industry's workforce remains highly skilled and ready to face change.
"Close collaboration between industry players, government agencies and academic institutions is also a key element in developing a more sustainable, innovative and resilient industry ecosystem," she added. NST
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Bangladesh to import 13mn litres of palm oil from US firm for TCB sales
The cabinet committee approves the purchase of oil and lentils for TCB’s subsidised sales
The government will import 13 million litres of refined palm olein for sale at subsidised prices to low-income cardholders under the Trading Corporation of Bangladesh (TCB) programme.
The finance ministry said in a statement that the oil will be procured from US-based Powerhouse General Trading LLC through an open international tender at a cost of Tk 1.81 billion.
In addition, 2,000 tonnes of lentils will be imported in a single lot as part of a plan to procure 8,000 tonnes through an open national tender process.
Palm olein, a liquid fraction derived from palm fruit kernel oil, is mainly used as edible oil.
Traders in Bangladesh have traditionally imported it from Malaysia, but under recent trade arrangements, the government is now sourcing it from a US company.
Bangladesh signed an Agreement on Reciprocal Trade (ART) with the United States on Feb 9, following nine months of negotiations aimed at avoiding additional tariffs.
Under the deal, Bangladesh has committed to increasing imports from the US, including agricultural products and liquefied natural gas (LNG), while also offering broader market access.
The agreement includes commitments to import $3.5 billion worth of US agricultural goods over five years and $15 billion worth of LNG over 15 years, along with approval to purchase 14 Boeing aircraft for Biman Bangladesh Airlines.
Bangladesh has also agreed not to impose barriers on imports of US meat, poultry, processed meat, catfish and eggs, a provision that has drawn objections from domestic poultry industry stakeholders.
The deal also contains trade provisions that ensure duty-free access for about 2,500 Bangladeshi products in the US market, including pharmaceuticals, agricultural goods, plastics and wood products.
On the other hand, 7,132 US tariff lines will receive duty-free access in Bangladesh, with phased reductions for some products over five to 10 years. BD News24
Southeast Asian countries seek domestic fuels amid energy crunch
Southeast Asian countries are leaning harder on homegrown energy sources — from coal to palm oil and sugarcane — as soaring costs and supply risks make Middle Eastern oil and gas imports less viable.
The pivot is proving double-edged, analysts said. Surging demand is driving up prices of coal and biofuels, while renewed investment in coal plants threatens to derail each country's pledge to reduce emissions.
Indonesia, the world's largest thermal coal exporter, plans to raise coal output this year to boost state revenues amid rising coal prices.
Thailand will restart two decommissioned units at the coal-fired power plant in Lampang Province to contain rising electricity bills.
Philippine Energy Secretary Sharon Garin said the government is open to lifting the moratorium on building new coal-fired power plants.
For some members of the Association of Southeast Asian Nations, using more coal is "a short-term and readily available solution, but not the most environmentally friendly", said Priyanka Kishore, director and principal economist at the Singapore-based consultancy Asia Decoded.
Higher demand is also boosting global coal prices, Kishore said, adding that this would lead to higher electricity prices.
The benchmark Newcastle coal futures rose to $150 per metric ton on March 9, its highest level since November 2024, according to Bloomberg.
Rising prices prove that coal is not insulated from geopolitical shocks, according to global research organization Zero Carbon Analytics.
"Only renewables are immune to such immediate crises, as once installed, they do not require a constant supply of fuel to generate electricity," the nonprofit said in its latest report.
Khor Yu Leng, director of Segi Enam Advisors in Singapore, said the oil and gas supply crunch has put biofuels back in the spotlight.
Biofuels in spotlight
Vietnam is rolling out E10 gasoline — a blend containing 10 percent bioethanol — from April 30, about a month ahead of its previous June 1 target.
Malaysia is set to increase its biodiesel blend mandate from B10 — a blend containing 10 percent palm methyl ester — to B15, starting with an initial rollout of B12, a 12 percent blend.
Thai ethanol manufacturers are increasing production of gasohol E20 — a mix of gasoline and 20 percent ethanol — to serve growing local demand.
Khor of Segi Enam Advisors said high diesel prices will not necessarily make biodiesel a viable option for most motorists.
Palm oil mills already generate electricity from waste biomass, but grid rules and pricing keep that energy sidelined, she said.
She suggested that unlocking mill-based biomass into local networks could deliver quicker, more reliable energy security than chasing higher biofuel blends.
The increased demand for biofuels has likewise raised palm oil prices — a feedstock for biodiesel.
On March 6, the benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose by nearly 4 percent to 4,365 ringgit ($1,100) per ton. Malaysian palm oil futures were trading at over 4,500 ringgit per ton on Thursday. China Daily
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Ministry to modernise palm oil milling sector with technology, sustainable practices
KUALA LUMPUR: Plantation and Commodities Ministry will adopt technology and sustainable practices to enhance the competitiveness of the palm oil milling industry.
Its minister Datuk Seri Noraini Ahmad said the use of technology such as automation, data analytics and artificial intelligence can enhance operational efficiency, improve quality control, reduce operational disruptions and enable more proactive maintenance through data utilisation.
This commitment was demonstrated at the International Palm Oil Millers Conference 2026 (IPOMC 2026), hosted by the Incorporated Society of Planters from April 23-25.
Noraini said sustainability remains a priority through responsible resource management, improved energy efficiency and waste reduction.
"Compliance with standards such as the Malaysian Sustainable Palm Oil , as well as the management of food safety issues including 3-MCPD and glycidyl esters, is essential to ensure the industry's reputation is maintained and international market access remains secure," she said in a statement.
The ministry will also continue investments in education, training and leadership development to ensure the industry's workforce remains highly skilled and ready to face change.
"Close collaboration between industry players, government agencies and academic institutions is also a key element in developing a more sustainable, innovative and resilient industry ecosystem," she added. NST
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Bangladesh to import 13mn litres of palm oil from US firm for TCB sales
The cabinet committee approves the purchase of oil and lentils for TCB’s subsidised sales
The government will import 13 million litres of refined palm olein for sale at subsidised prices to low-income cardholders under the Trading Corporation of Bangladesh (TCB) programme.
The finance ministry said in a statement that the oil will be procured from US-based Powerhouse General Trading LLC through an open international tender at a cost of Tk 1.81 billion.
In addition, 2,000 tonnes of lentils will be imported in a single lot as part of a plan to procure 8,000 tonnes through an open national tender process.
Palm olein, a liquid fraction derived from palm fruit kernel oil, is mainly used as edible oil.
Traders in Bangladesh have traditionally imported it from Malaysia, but under recent trade arrangements, the government is now sourcing it from a US company.
Bangladesh signed an Agreement on Reciprocal Trade (ART) with the United States on Feb 9, following nine months of negotiations aimed at avoiding additional tariffs.
Under the deal, Bangladesh has committed to increasing imports from the US, including agricultural products and liquefied natural gas (LNG), while also offering broader market access.
The agreement includes commitments to import $3.5 billion worth of US agricultural goods over five years and $15 billion worth of LNG over 15 years, along with approval to purchase 14 Boeing aircraft for Biman Bangladesh Airlines.
Bangladesh has also agreed not to impose barriers on imports of US meat, poultry, processed meat, catfish and eggs, a provision that has drawn objections from domestic poultry industry stakeholders.
The deal also contains trade provisions that ensure duty-free access for about 2,500 Bangladeshi products in the US market, including pharmaceuticals, agricultural goods, plastics and wood products.
On the other hand, 7,132 US tariff lines will receive duty-free access in Bangladesh, with phased reductions for some products over five to 10 years. BD News24
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April 22, 2026
Even this lipstick I wear comes from palm oil
"Did you know," Siti says, touching her lips, "that even this lipstick comes from palm oil!" She says it lightly with pride.
Over the years, she has noticed that whenever palm oil enters the conversation, it is often linked to the impacts of unsustainable management, while everyday realities of small farmers are rarely part of the story. Less often acknowledged are the millions of families who depend on the crop for their livelihoods, including farmers like Siti and many of her neighbours who believe productivity and sustainability must go hand in hand.
So Siti likes to bring the conversation back to what people know best: their own homes. The cooking oil warming in the kitchen, the soap by the sink, cosmetics on store shelves, even sauces and condensed milk in household cupboards all connect, in one way or another, to what farmers like her cultivate on two hectares of Sumatran soil. "So yes," she says, "I am proud to be a oil palm farmer. Especially as an independent smallholder."
That pride has been earned across roughly twenty years and several hard lessons about soil, about fairness, and about knowing how to read the soil properly.
Siti’s family arrived in Jambi through Indonesia’s transmigration program, one of the government’s largest rural development efforts to help families build new lives outside densely populated islands such as Java. Jambi was among the key destination provinces, receiving thousands of transmigrant families over several decades to support agricultural development and regional growth.
Like many families at the time, they first planted rubber. But when the trees aged and yields declined around 2002–2003, the community faced a difficult choice: continue struggling, or adapt. Together, many farmers shifted to oil palm. It offered what rubber no longer could, steadier income, less daily labour, and harvests that continued even during the rainy season. "With rubber, you have to go every single day," she explains. "With palm, harvest comes every two weeks."
For many farmers, that meant better earnings. For Siti, it meant something more profound: time. Time to manage the household, time to support her family, and time to participate more actively in decisions about their future. What changed in the field also changed the balance of power at home.
Still, the early years were far from easy. Her transition into oil palm farming did not come with formal training, only trial and error. Fertilizer was applied whenever money was available, often mixed in one batch and in the wrong amounts, gradually hardening the soil and reducing nutrients. She harvested without protective equipment. She pruned without knowing the right techniques. Yields remained below 800 kilograms per cycle.
“We were still learning,” she says. “We didn’t know anything yet.”
Then, in 2023, an opportunity arrived in her village through a training programme supported by Setara and UNDP under the Green Commodities Programme (GCP), funded by the State Secretariat for Economic Affairs of Switzerland (SECO). UNDP
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B50 biodiesel could save Indonesia US$9.18 billion in forex by 2026
West Bandung, W. Java (ANTARA) - The mandatory B50 biodiesel, set to take effect on July 1, is projected to save Indonesia up to Rp157.28 trillion (US$9.18 billion) in foreign exchange by 2026.
"God willing, it can take effect on July 1,” Eniya Listiani Dewi, Energy and Mineral Resources Ministry (ESDM) director general of new, renewable energy and energy conservative, said in Bandung on Tuesday.
She explained that the B50 blend, consisting of 50 percent crude palm oil (CPO) and 50 percent fossil diesel, is still in the road testing phase, which has been underway since December 9, 2025.
The road testing on nine types of vehicles is targeted for completion in May. Following the road testing, ESDM Ministry will inspect the condition of the engines.
Road testing and engine inspections for the automotive sector are targeted for completion in June 2026.
According to Eniya, preliminary results of the B50 testing indicate that the quality of B50 fuel meets the required specifications.
In addition to the automotive sector, B50 is being tested in agricultural machinery, heavy mining equipment, maritime transportation, railways and power generation.
"So, there will be no more B40 biodiesel (starting July 1). We will start implementing B50 simultaneously in all sectors,” Eniya noted.
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. Antara News
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Nigeria faces palm oil deficit despite strong production potential
Nigeria’s domestic demand for palm oil exceeds 2.5 million metric tons annually, while production stands at only about 1.4 million tons. This imbalance is putting pressure on the agricultural sector and forcing the country to rely on imports to bridge the gap.
This was announced by the Minister of Agriculture and Food Security, Abubakar Kyari, during a national stakeholders’ meeting held in Abuja. The meeting focused on strengthening Nigeria’s palm oil production capacity.
According to the minister, Nigeria was once a global leader in palm oil production in the 1960s, accounting for more than 40% of global supply. At that time, palm oil was a major export commodity and a key driver of economic development.
However, production capacity has significantly declined over the years. The current deficit exceeds 1 million tons annually, resulting in import costs ranging from $500 million to $600 million. Kyari noted that this reflects lost economic opportunities for the country.
Despite this, Nigeria has substantial untapped potential, with more than 3 million hectares of land suitable for oil palm cultivation. The minister emphasized that the issue lies not in a lack of resources, but in insufficient scale and coordination.
Global demand for palm oil continues to grow, with the market valued at over $70 billion annually. The product is widely used in food production, cosmetics, pharmaceuticals, and biofuel industries.
The federal government, led by President Bola Tinubu, is prioritizing agricultural reform under its “Renewed Hope” agenda, aiming to unlock the sector’s full potential, create jobs, and enhance food security. UKR Agroconsult
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Zero Acre Farms Launches Organic Fera Fruit Oil, the First Organic Seed Oil-Free Frying Oil for Restaurant-Scale Performance
A first-to-market, seed oil-free solution that delivers longer fry life and cleaner results across U.S. restaurant kitchens
NEW YORK, April 21, 2026 /PRNewswire/ -- Zero Acre Farms, the company focused on bringing better oils to restaurants, announces the launch of Organic Fera fruit oil™ — a certified organic, single-ingredient fruit oil, offering a seed oil-free alternative to restaurant frying. As the first to introduce this organic oil to the U.S. foodservice market, Zero Acre Farms is establishing a new approach to high-heat cooking—one that moves beyond seed oils toward cleaner and better oils designed for stability, ingredient integrity and a clean-fried® standard that introduces a new way of thinking about frying. For decades, oils used for frying have been the most widely used yet least examined ingredients in restaurant kitchens. The seed oils most commonly used for frying are high in polyunsaturated fats, which are less stable under prolonged high heat and more prone to breakdown, unwanted flavors, and degradation during continuous use. Clean-fried establishes a new standard defined by better oils, stronger performance under high heat and more intentional sourcing, giving restaurant operators a clear way to communicate to guests how food is prepared, similar to pasture-raised or grass-fed descriptions found on menus.
Hospitality Partners
Beginning on April 21, restaurants, hotels and foodservice operators can offer clean-fried dishes to guests, establishing a new industry standard for frying. Already adopted by hundreds of foodservice operators across the country, Organic Fera fruit oil is used in kitchens nationwide. The following is a representative selection of current partners:
Restaurants
COTE Korean Steakhouse, COQODAQ, Undercote, Bar Chimera, New York City
Craig's, Los Angeles
Jitlada, Los Angeles
Mezeh Mediterranean Grill, national locations
Nami Nori, all properties nationwide
Nixta Taqueria, Austin
Press Burger, Connecticut
Strange Delight, Brooklyn
Vespertine, Meteora, Destroyer, Los Angeles
Grocery + Membership Clubs
BIÂN, Chicago
Happier Grocery, New York City
Hotels
1 Hotels, all properties nationwide
Proper Hotels, all properties nationwide
"Cooking oil is one of the most ubiquitous ingredients in the food system, yet most restaurants are still frying in seed oils that easily break down under heat," says Jeff Nobbs, founder and chairman of Zero Acre Farms. "Many kitchens are already returning to more natural oils and fats like olive oil and beef tallow, and we see Fera as complementary to those options as a seed oil-free frying oil that chefs can use alongside those ingredients, not instead of them."
"For us, it's never just about what's on the plate, it's about the system behind it. Ingredients are a reflection of how they're grown, how they're produced, and the values that shape them," says Kyle Connaughton, chef and owner of SingleThread, a Michelin three star farm, restaurant & inn in Sonoma County. "Oils are such a foundational part of how we cook, yet they've become increasingly industrialized and disconnected from their origin. There's a real opportunity to rethink that. What Zero Acre Farms is doing brings the conversation back to how these ingredients are sourced and produced, and shows that even at scale, there's a more thoughtful, more intentional way forward."
How Organic Fera Fruit Oil Aims to Revolutionize Restaurant Frying
Organic Fera fruit oil delivers a lighter, cleaner crisp, stays fresh longer in the fryer, and can produce less smoke and odor in the kitchen—all without the chemical processing or additives used in most frying oils. Unlike seed oils such as soybean, canola, sunflower, and corn, which are typically extracted using high heat and chemical solvents, Organic Fera fruit oil is expeller-pressed directly from fruit, with nothing else added. The result is an oil that performs reliably under heat. It can last at least twice as long in commercial fryers, reducing the frequency of oil changes and improving cost-in-use, while producing a cleaner, less greasy crisp with minimal flavor transfer.
About Fera PR Newswire
Even this lipstick I wear comes from palm oil
"Did you know," Siti says, touching her lips, "that even this lipstick comes from palm oil!" She says it lightly with pride.
Over the years, she has noticed that whenever palm oil enters the conversation, it is often linked to the impacts of unsustainable management, while everyday realities of small farmers are rarely part of the story. Less often acknowledged are the millions of families who depend on the crop for their livelihoods, including farmers like Siti and many of her neighbours who believe productivity and sustainability must go hand in hand.
So Siti likes to bring the conversation back to what people know best: their own homes. The cooking oil warming in the kitchen, the soap by the sink, cosmetics on store shelves, even sauces and condensed milk in household cupboards all connect, in one way or another, to what farmers like her cultivate on two hectares of Sumatran soil. "So yes," she says, "I am proud to be a oil palm farmer. Especially as an independent smallholder."
That pride has been earned across roughly twenty years and several hard lessons about soil, about fairness, and about knowing how to read the soil properly.
Siti’s family arrived in Jambi through Indonesia’s transmigration program, one of the government’s largest rural development efforts to help families build new lives outside densely populated islands such as Java. Jambi was among the key destination provinces, receiving thousands of transmigrant families over several decades to support agricultural development and regional growth.
Like many families at the time, they first planted rubber. But when the trees aged and yields declined around 2002–2003, the community faced a difficult choice: continue struggling, or adapt. Together, many farmers shifted to oil palm. It offered what rubber no longer could, steadier income, less daily labour, and harvests that continued even during the rainy season. "With rubber, you have to go every single day," she explains. "With palm, harvest comes every two weeks."
For many farmers, that meant better earnings. For Siti, it meant something more profound: time. Time to manage the household, time to support her family, and time to participate more actively in decisions about their future. What changed in the field also changed the balance of power at home.
Still, the early years were far from easy. Her transition into oil palm farming did not come with formal training, only trial and error. Fertilizer was applied whenever money was available, often mixed in one batch and in the wrong amounts, gradually hardening the soil and reducing nutrients. She harvested without protective equipment. She pruned without knowing the right techniques. Yields remained below 800 kilograms per cycle.
“We were still learning,” she says. “We didn’t know anything yet.”
Then, in 2023, an opportunity arrived in her village through a training programme supported by Setara and UNDP under the Green Commodities Programme (GCP), funded by the State Secretariat for Economic Affairs of Switzerland (SECO). UNDP
---------
B50 biodiesel could save Indonesia US$9.18 billion in forex by 2026
West Bandung, W. Java (ANTARA) - The mandatory B50 biodiesel, set to take effect on July 1, is projected to save Indonesia up to Rp157.28 trillion (US$9.18 billion) in foreign exchange by 2026.
"God willing, it can take effect on July 1,” Eniya Listiani Dewi, Energy and Mineral Resources Ministry (ESDM) director general of new, renewable energy and energy conservative, said in Bandung on Tuesday.
She explained that the B50 blend, consisting of 50 percent crude palm oil (CPO) and 50 percent fossil diesel, is still in the road testing phase, which has been underway since December 9, 2025.
The road testing on nine types of vehicles is targeted for completion in May. Following the road testing, ESDM Ministry will inspect the condition of the engines.
Road testing and engine inspections for the automotive sector are targeted for completion in June 2026.
According to Eniya, preliminary results of the B50 testing indicate that the quality of B50 fuel meets the required specifications.
In addition to the automotive sector, B50 is being tested in agricultural machinery, heavy mining equipment, maritime transportation, railways and power generation.
"So, there will be no more B40 biodiesel (starting July 1). We will start implementing B50 simultaneously in all sectors,” Eniya noted.
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. Antara News
--------
Nigeria faces palm oil deficit despite strong production potential
Nigeria’s domestic demand for palm oil exceeds 2.5 million metric tons annually, while production stands at only about 1.4 million tons. This imbalance is putting pressure on the agricultural sector and forcing the country to rely on imports to bridge the gap.
This was announced by the Minister of Agriculture and Food Security, Abubakar Kyari, during a national stakeholders’ meeting held in Abuja. The meeting focused on strengthening Nigeria’s palm oil production capacity.
According to the minister, Nigeria was once a global leader in palm oil production in the 1960s, accounting for more than 40% of global supply. At that time, palm oil was a major export commodity and a key driver of economic development.
However, production capacity has significantly declined over the years. The current deficit exceeds 1 million tons annually, resulting in import costs ranging from $500 million to $600 million. Kyari noted that this reflects lost economic opportunities for the country.
Despite this, Nigeria has substantial untapped potential, with more than 3 million hectares of land suitable for oil palm cultivation. The minister emphasized that the issue lies not in a lack of resources, but in insufficient scale and coordination.
Global demand for palm oil continues to grow, with the market valued at over $70 billion annually. The product is widely used in food production, cosmetics, pharmaceuticals, and biofuel industries.
The federal government, led by President Bola Tinubu, is prioritizing agricultural reform under its “Renewed Hope” agenda, aiming to unlock the sector’s full potential, create jobs, and enhance food security. UKR Agroconsult
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Zero Acre Farms Launches Organic Fera Fruit Oil, the First Organic Seed Oil-Free Frying Oil for Restaurant-Scale Performance
A first-to-market, seed oil-free solution that delivers longer fry life and cleaner results across U.S. restaurant kitchens
NEW YORK, April 21, 2026 /PRNewswire/ -- Zero Acre Farms, the company focused on bringing better oils to restaurants, announces the launch of Organic Fera fruit oil™ — a certified organic, single-ingredient fruit oil, offering a seed oil-free alternative to restaurant frying. As the first to introduce this organic oil to the U.S. foodservice market, Zero Acre Farms is establishing a new approach to high-heat cooking—one that moves beyond seed oils toward cleaner and better oils designed for stability, ingredient integrity and a clean-fried® standard that introduces a new way of thinking about frying. For decades, oils used for frying have been the most widely used yet least examined ingredients in restaurant kitchens. The seed oils most commonly used for frying are high in polyunsaturated fats, which are less stable under prolonged high heat and more prone to breakdown, unwanted flavors, and degradation during continuous use. Clean-fried establishes a new standard defined by better oils, stronger performance under high heat and more intentional sourcing, giving restaurant operators a clear way to communicate to guests how food is prepared, similar to pasture-raised or grass-fed descriptions found on menus.
Hospitality Partners
Beginning on April 21, restaurants, hotels and foodservice operators can offer clean-fried dishes to guests, establishing a new industry standard for frying. Already adopted by hundreds of foodservice operators across the country, Organic Fera fruit oil is used in kitchens nationwide. The following is a representative selection of current partners:
Restaurants
COTE Korean Steakhouse, COQODAQ, Undercote, Bar Chimera, New York City
Craig's, Los Angeles
Jitlada, Los Angeles
Mezeh Mediterranean Grill, national locations
Nami Nori, all properties nationwide
Nixta Taqueria, Austin
Press Burger, Connecticut
Strange Delight, Brooklyn
Vespertine, Meteora, Destroyer, Los Angeles
Grocery + Membership Clubs
BIÂN, Chicago
Happier Grocery, New York City
Hotels
1 Hotels, all properties nationwide
Proper Hotels, all properties nationwide
"Cooking oil is one of the most ubiquitous ingredients in the food system, yet most restaurants are still frying in seed oils that easily break down under heat," says Jeff Nobbs, founder and chairman of Zero Acre Farms. "Many kitchens are already returning to more natural oils and fats like olive oil and beef tallow, and we see Fera as complementary to those options as a seed oil-free frying oil that chefs can use alongside those ingredients, not instead of them."
"For us, it's never just about what's on the plate, it's about the system behind it. Ingredients are a reflection of how they're grown, how they're produced, and the values that shape them," says Kyle Connaughton, chef and owner of SingleThread, a Michelin three star farm, restaurant & inn in Sonoma County. "Oils are such a foundational part of how we cook, yet they've become increasingly industrialized and disconnected from their origin. There's a real opportunity to rethink that. What Zero Acre Farms is doing brings the conversation back to how these ingredients are sourced and produced, and shows that even at scale, there's a more thoughtful, more intentional way forward."
How Organic Fera Fruit Oil Aims to Revolutionize Restaurant Frying
Organic Fera fruit oil delivers a lighter, cleaner crisp, stays fresh longer in the fryer, and can produce less smoke and odor in the kitchen—all without the chemical processing or additives used in most frying oils. Unlike seed oils such as soybean, canola, sunflower, and corn, which are typically extracted using high heat and chemical solvents, Organic Fera fruit oil is expeller-pressed directly from fruit, with nothing else added. The result is an oil that performs reliably under heat. It can last at least twice as long in commercial fryers, reducing the frequency of oil changes and improving cost-in-use, while producing a cleaner, less greasy crisp with minimal flavor transfer.
About Fera PR Newswire
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April 21, 2026
Biofuels back in vogue as Iran war triggers oil price surge
Summary
LONDON, April 21 (Reuters) - Soaring oil prices in the wake of the U.S.-Israeli war on Iran are driving renewed demand for biofuels as the need to tackle a fossil fuel shortage outweighs concerns that using crops for fuel will drive up food prices.
The conflict has disrupted about 20% of the world's oil and gas supplies, which typically pass through the Strait of Hormuz in the Middle East Gulf. Crude prices are up more than 30% since late February, before the war started. In contrast, prices for corn , a key biofuel ingredient, have risen just 5%.
Biofuels, made from any organic feedstock, are usually blended into gasoline or used to replace diesel. They become more economical when fossil fuel prices rise. They can also help keep prices down at the pump and reduce dependency on costly crude oil and fuel imports.
Countries in Asia, heavily dependent on Middle East oil imports, have sought to increase biofuel use since the war began. Asia buys about 80% of the oil shipped through the Strait of Hormuz, which has largely been closed to shipping since the conflict began.
Vietnam said in late March it would switch fully to ethanol-blended gasoline from April due to the energy price surge, bringing forward a previous target of June 1. Ethanol is produced mostly from corn or sugarcane.
Indonesia has said it will raise the mandatory blending rate for biodiesel made from palm oil to 50% from 40%. Indonesia is the world's largest producer and exporter of palm oil.
"In Asia, countries do look at biofuels that can be produced from locally sourced feedstocks as they can reach two goals at once - limit energy imports and increase profitability for farmers," Kpler biofuels analyst Beata Wojtkowska said.
Asian countries are trying to soften the impact on their economies of the war-induced energy price surge with measures like fuel rationing, shorter work weeks and alternating driving days.
"I expect the crisis to give the Asian biofuel sector a boost," International Sugar Organization senior economist Peter de Klerk said, adding that India was planning to increase the amount of ethanol blended into gasoline, while Thailand was also looking at its ethanol options.
FOOD VERSUS FUEL
Measures to boost biofuel production and use, like crop subsidies and mandates, came under scrutiny in the 2007-2008 food price crisis, prompting a fierce debate amongst policymakers over food versus fuel security. Critics, including politicians, think tanks and non-profits, pointed to biofuels as a driver of rising food prices.
Biofuel production can take up a large amount of crops. About 40% of the corn in top grower the U.S. is used to make ethanol, while top sugar producer Brazil uses 50% of its sugarcane to make the biofuel.
The war-fuelled surge in energy, transport and fertiliser costs has already triggered a rise in world food prices, which hit a six-month high in March. Increased use of biofuels could potentially drive food prices higher still.
But Phil Aikman, Southeast Asia campaign director for non-profit Mighty Earth, said significantly higher food prices would only come about if biofuel makers build new plants at scale, which would take years.
Also, global grain and vegetable oil supplies are plentiful at present, so the food vs fuel debate has not been nearly as prominent as it was in 2007-2008.
Biofuels account for a fraction of global energy needs - meeting just 4% of transport fuel demand. Consultants BMI, a unit of Fitch, expect biofuels to meet 5% of transport energy needs by 2035.
As well as the time and cost involved in building new plants, fuel blending limitations and feedstock supply constraints would prevent a large and rapid growth in demand for biofuels, Kpler's Wojtkowska said.
"Biofuels can help ease (fuel) prices somewhat but not on a large scale," she said.
THE EU EXCEPTION
One outlier in the increase in biofuel consumption is the EU, where there is a cap on use due to concerns that using too much can drive up both food prices and deforestation rates, said Roger Bradshaw, an independent commodity specialist.
The cap is part of the EU's renewable fuel obligation - which is aimed at cutting fossil fuel dependence.
In the U.S., by contrast, the Trump administration has ordered refiners to blend a record amount of biofuels this year.
In Brazil, the government is looking into raising the ethanol blend to 32% from 30% by end-June, while cane mills are set to use a larger proportion of the crop to make ethanol instead of sugar as the fuel is currently more profitable than the sweetener.
Reporting by Nigel Hunt and May Angel; Additional reporting by Bernadette Christina in Jakarta, Siddharth Cavale in New York and Oliver Griffin in Sao Paulo. Editing by Simon Webb and Jane Merriman Reuters
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Indonesia to stop diesel imports, shift to palm oil fuel
Indonesia will stop importing diesel fuel starting July 1, 2026, in line with the implementation of B50, a biofuel blend consisting of 50 per cent diesel and 50 per cent crude palm oil (CPO).
“We will no longer import diesel. Per July 1, 2026, we will stop (diesel import), as B50 comes into effect,” Minister of Agriculture Andi Amran Sulaiman stated at the Sepuluh Nopember Institute of Technology (ITS) here on Sunday.
According to him, the move is part of the government’s efforts to strengthen national energy independence by utilising palm oil as an alternative fuel.
He explained that palm oil can be processed not only into diesel but also into gasoline and ethanol, whose development is currently being accelerated.
“This is Indonesia’s future energy, as it is sourced from palm oil. Palm oil can become diesel, and it can also become gasoline,” he said as quoted by Indonesian news agency (ANTARA).
In addition, the government is preparing cooperation with state-owned plantation firm PTPN IV to develop palm oil-based gasoline on a small scale before expanding it into a large-scale industry.
“If this succeeds, we will expand it on a large scale. Indonesia’s future is bright,” he said. Trade Arabia
--------
Europe’s biofuel crossroads
As Europe accelerates towards net-zero emissions and greater energy independence, the biofuel industry stands at a critical juncture. Once heralded as a cornerstone of decarbonising transport and delivering rural economic benefits, the sector in 2026 presents a complex picture: rapid growth in some nations, strategic investment in others, but also sharp policy-driven... [Read More]
--------
Why shipping’s cheapest alternative fuel could become its most expensive mistake
WITH the rules on how to comply with IMO’s Net-Zero Framework now taking shape, despite its adoption delay, shipowners are already looking for the cheapest way to comply. Food-based biofuels may seem to be the most logical answer.
They are available on the market today, relatively cheap compared to alternatives, and can be used in existing engines without major modifications. For an industry that could be under strong regulatory pressure, this combination is difficult to ignore.
But cheap compliance can become expensive. The costs just tend to fall somewhere else: on food consumers in importing countries, on forests and peatlands, and eventually, on the shipowners and investors who have chosen the wrong fuel at the wrong moment.
Shipping currently burns around 300m tonnes of fossil fuels per year. Even a partial shift toward vegetable oil-based biofuels would represent a demand shock of historic proportions.
Research by the International Council on Clean Transportation estimates that under an IMO framework without adequate safeguards, vegetable oil demand from shipping alone could reach 140bn litres by 2035 — roughly triple the entire current global market for vegetable oil biofuels.
The consequence is concerning: global vegetable oil prices would rise, perhaps tripling.
Those price increases do not fall equally. They fall hardest on the countries and communities least able to absorb them: net food-importing nations, low-income households and the 673m people already living with food insecurity. Shipping’s green transition risks becoming a private gain made at public expense and scaling up biofuels demand to shipping’s level of consumption would be far larger than anything we have witnessed before.
If this was not enough, using vegetable oil-based biofuels can increase net greenhouse gas emissions because of a phenomenon called indirect land-use change (ILUC). ILUC occurs when land used for growing food is used to produce biofuel feedstocks instead.
Because the demand for food persists, and because the prices of these food crops are now higher, it can become economically attractive to cut down forests and drain peatlands to make way for agriculture. This causes the carbon once stored in forests and soils to be released to the atmosphere, contributing to global warming.
Luckily, the IMO does not need to reinvent the wheel when it comes to common sense protections against these sorts of biofuels.
The EU has already designated palm oil and, most recently, soya as feedstocks with high risks for spurring ILUC. Other European transport policies, i.e. FuelEU Maritime and ReFuel EU for aviation, exclude food- and feed-based biofuels entirely.
In the US, California's Low Carbon Fuel Standard caps credits from soya, canola and sunflower oils. The International Civil Aviation Organization CORSIA programme applies quantitative ILUC emission factors that limit the amount of GHG reduction airlines can claim when using food-based biofuels.
A shipowner who builds a compliance strategy around palm or soya-based biofuels today is not buying a solution but only locking themselves into a feedstock that could face growing legislative risk across its main markets.
The deeper problem is what food-based biofuels are pushing out. Every dollar directed toward crop biofuels is a dollar not flowing toward low-emission fuels that decarbonisation actually requires — meaning, those produced with renewable electricity. Several shipowners have ordered vessels specifically designed to run on ammonia or methanol and ports are beginning to invest in the infrastructure to support them.
Investing in food-based biofuels will only delay this transition.
The solutions are simple. First, cap or better yet, exclude the use of food- and feed-based biofuels from complying under IMO policies. Practically, this means classifying feedstocks like palm and soy as high-ILUC-risk under the IMO lifecycle assessment guidelines, enabling restrictions on those feedstocks in IMO regulations. Second, reward the production and use of second-generation biofuels made from wastes or renewable e-fuels.
Cheap biofuels are an illusion; someone, somewhere is paying the price through higher food prices, deforested lands and disruptive climate impacts.
Shipowners that choose those biofuels expose themselves to the risk that regulators follow the lead of the EU, California, and ICAO. So, let’s avoid this expensive distraction and design an IMO regulation that makes shipping decarbonisation truly begin.
Bryan Comer is marine program director at the International Council on Clean Transportation Lloyds List
--------
Our efforts to halt global forest loss aren’t working: new research
The loss of our forests is one of the biggest environmental challenges of our time.
Forests are key to curbing carbon emissions and protecting the plants, animals and humans that call Earth home.
However, we’re losing our forests at an alarming rate. Our new study shows we’ve lost roughly 300 million hectares over the past 11 years. However, it’s unclear how much of this forest has since been restored.
Either way, we’re losing a significant amount of forest despite efforts to protect it through certification, protection and other conservation schemes.
A global effort
The European Union has introduced policies aimed at eliminating products and supply chains that contribute to forest loss. Examples include palm oil, soy, coffee, cocoa, timber and rubber.
Halting forest loss is also a major focus of international declarations, such as the Glasgow Leaders’ Declaration on Forests and Land Use. This declaration, which more than 140 countries endorsed at the COP26 conference in 2021, aims to strengthen global efforts to reduce deforestation and land degradation.
Over the past three decades, the international community has launched forest management certification schemes to protect our forests. These include those developed by the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification.
These are voluntary, market-based schemes meant to ensure forests are being properly managed. These schemes aren’t state-controlled, but rely on the market to create incentives to pressure companies to comply. They do this by getting accredited auditors to independently assess forest management practices against approved or endorsed forest management standards. These schemes also encourage companies to buy products sourced from certified forests. About 10% of the world’s forests are currently certified under these schemes, equal to more than 400 million hectares.
Protected areas may also help curb forest loss. Protected areas are defined locations designed to help conserve nature. Globally, roughly 18% of our forests are in protected areas.
These two strategies should be reducing, or even stopping, forest loss. But they’re failing to do so at a global scale.
So, what’s actually happening?
In our new study, we measured how much forest each country lost each year, due to fire or other causes, from 2013 to 2023. An example of a fire-related cause is a severe fire that engulfs the tree canopy. Forest loss as a result of logging for agricultural or urban development is an example of a non-fire cause. We then compared this to how much forest area is certified or protected in each country.
Between 2013 and 2023, we estimate the amount of forest in protected areas increased from about 868 million hectares to 990 million hectares.
Despite this, our study shows over that period between 21 million and 32 million hectares of forest were lost each year. This tracks with earlier research finding a similar, and no less alarming, trend between 2002 and 2011.
Our study also found no evidence linking more certification and protected areas with less forest loss, at a country level. Between 2013 and 2023, nearly half of global forest loss happened in four countries. These include Russia, Brazil, Canada and the United States. This was mainly caused by fire in countries north of the equator, and non-fire causes in tropical regions such as Brazil.
What can we do?
Forest certification schemes and protected areas, while effective at a forest or local scale, may not have much of an impact on forest loss on a global level. But that’s not a reason to get rid of them.
Instead, we should consider them as just some of the tools in the toolbox. And to make them more effective, we should rethink how they are governed and implemented.
At present, forest management certification schemes are market-based. This means they are largely influenced by private companies. In contrast, most protected areas are managed by state actors, such as a country’s government.
These are two very different forms of governance that historically have not been applied in a coordinated way. For example, a government may decide to add more forest to a protected area. But if it doesn’t have the support of private companies, this may inadvertently lead to negative forest leakage. This is where unprotected forests become more vulnerable to forms of intensified logging, such as clearfelling. Clearfelling involves removing most or all of an area’s trees in one operation, meaning old-growth trees and other key parts of the forest may be lost. To avoid this, we need to coordinate certification and protected areas better.
Another approach that’s been effective is Indigenous-led management. This gives Indigenous communities control over how land is used and managed, including preventing deforestation and other types of illegal forest loss. Recent research suggests this approach can be effective in conserving forests, when used in conjunction with other strategies.
We also need to use the resources we get from our forests more appropriately and efficiently. The vast majority of logs cut from forests are used in short-lived and often disposable products, such as copy paper and pallets. Using precious forests for these low-value products is wasteful and inefficient. It might help reduce forest loss if these products came from recycled sources. To protect our forests, we need to do more with less. Chris Taylor, David Lindenmayer, Maldwyn John Evans, The Conversation
--------
Biofuels back in vogue as Iran war triggers oil price surge
Summary
- Asian countries seeking to use more biofuels since onset of war
- Biofuels can help ease fuel prices, reduce import dependency
- Crude oil up 30% since war started, key biofuel input corn up 5%
LONDON, April 21 (Reuters) - Soaring oil prices in the wake of the U.S.-Israeli war on Iran are driving renewed demand for biofuels as the need to tackle a fossil fuel shortage outweighs concerns that using crops for fuel will drive up food prices.
The conflict has disrupted about 20% of the world's oil and gas supplies, which typically pass through the Strait of Hormuz in the Middle East Gulf. Crude prices are up more than 30% since late February, before the war started. In contrast, prices for corn , a key biofuel ingredient, have risen just 5%.
Biofuels, made from any organic feedstock, are usually blended into gasoline or used to replace diesel. They become more economical when fossil fuel prices rise. They can also help keep prices down at the pump and reduce dependency on costly crude oil and fuel imports.
Countries in Asia, heavily dependent on Middle East oil imports, have sought to increase biofuel use since the war began. Asia buys about 80% of the oil shipped through the Strait of Hormuz, which has largely been closed to shipping since the conflict began.
Vietnam said in late March it would switch fully to ethanol-blended gasoline from April due to the energy price surge, bringing forward a previous target of June 1. Ethanol is produced mostly from corn or sugarcane.
Indonesia has said it will raise the mandatory blending rate for biodiesel made from palm oil to 50% from 40%. Indonesia is the world's largest producer and exporter of palm oil.
"In Asia, countries do look at biofuels that can be produced from locally sourced feedstocks as they can reach two goals at once - limit energy imports and increase profitability for farmers," Kpler biofuels analyst Beata Wojtkowska said.
Asian countries are trying to soften the impact on their economies of the war-induced energy price surge with measures like fuel rationing, shorter work weeks and alternating driving days.
"I expect the crisis to give the Asian biofuel sector a boost," International Sugar Organization senior economist Peter de Klerk said, adding that India was planning to increase the amount of ethanol blended into gasoline, while Thailand was also looking at its ethanol options.
FOOD VERSUS FUEL
Measures to boost biofuel production and use, like crop subsidies and mandates, came under scrutiny in the 2007-2008 food price crisis, prompting a fierce debate amongst policymakers over food versus fuel security. Critics, including politicians, think tanks and non-profits, pointed to biofuels as a driver of rising food prices.
Biofuel production can take up a large amount of crops. About 40% of the corn in top grower the U.S. is used to make ethanol, while top sugar producer Brazil uses 50% of its sugarcane to make the biofuel.
The war-fuelled surge in energy, transport and fertiliser costs has already triggered a rise in world food prices, which hit a six-month high in March. Increased use of biofuels could potentially drive food prices higher still.
But Phil Aikman, Southeast Asia campaign director for non-profit Mighty Earth, said significantly higher food prices would only come about if biofuel makers build new plants at scale, which would take years.
Also, global grain and vegetable oil supplies are plentiful at present, so the food vs fuel debate has not been nearly as prominent as it was in 2007-2008.
Biofuels account for a fraction of global energy needs - meeting just 4% of transport fuel demand. Consultants BMI, a unit of Fitch, expect biofuels to meet 5% of transport energy needs by 2035.
As well as the time and cost involved in building new plants, fuel blending limitations and feedstock supply constraints would prevent a large and rapid growth in demand for biofuels, Kpler's Wojtkowska said.
"Biofuels can help ease (fuel) prices somewhat but not on a large scale," she said.
THE EU EXCEPTION
One outlier in the increase in biofuel consumption is the EU, where there is a cap on use due to concerns that using too much can drive up both food prices and deforestation rates, said Roger Bradshaw, an independent commodity specialist.
The cap is part of the EU's renewable fuel obligation - which is aimed at cutting fossil fuel dependence.
In the U.S., by contrast, the Trump administration has ordered refiners to blend a record amount of biofuels this year.
In Brazil, the government is looking into raising the ethanol blend to 32% from 30% by end-June, while cane mills are set to use a larger proportion of the crop to make ethanol instead of sugar as the fuel is currently more profitable than the sweetener.
Reporting by Nigel Hunt and May Angel; Additional reporting by Bernadette Christina in Jakarta, Siddharth Cavale in New York and Oliver Griffin in Sao Paulo. Editing by Simon Webb and Jane Merriman Reuters
--------
Indonesia to stop diesel imports, shift to palm oil fuel
Indonesia will stop importing diesel fuel starting July 1, 2026, in line with the implementation of B50, a biofuel blend consisting of 50 per cent diesel and 50 per cent crude palm oil (CPO).
“We will no longer import diesel. Per July 1, 2026, we will stop (diesel import), as B50 comes into effect,” Minister of Agriculture Andi Amran Sulaiman stated at the Sepuluh Nopember Institute of Technology (ITS) here on Sunday.
According to him, the move is part of the government’s efforts to strengthen national energy independence by utilising palm oil as an alternative fuel.
He explained that palm oil can be processed not only into diesel but also into gasoline and ethanol, whose development is currently being accelerated.
“This is Indonesia’s future energy, as it is sourced from palm oil. Palm oil can become diesel, and it can also become gasoline,” he said as quoted by Indonesian news agency (ANTARA).
In addition, the government is preparing cooperation with state-owned plantation firm PTPN IV to develop palm oil-based gasoline on a small scale before expanding it into a large-scale industry.
“If this succeeds, we will expand it on a large scale. Indonesia’s future is bright,” he said. Trade Arabia
--------
Europe’s biofuel crossroads
As Europe accelerates towards net-zero emissions and greater energy independence, the biofuel industry stands at a critical juncture. Once heralded as a cornerstone of decarbonising transport and delivering rural economic benefits, the sector in 2026 presents a complex picture: rapid growth in some nations, strategic investment in others, but also sharp policy-driven... [Read More]
--------
Why shipping’s cheapest alternative fuel could become its most expensive mistake
- Any IMO green framework needs adequate safeguards against crop-based biofuels
- Demand from shipping could drive up the price of vegetable oils, with costs falling on the poorest
- Investment in crop-based biofuels delays transition to greener fuels, research group argues
WITH the rules on how to comply with IMO’s Net-Zero Framework now taking shape, despite its adoption delay, shipowners are already looking for the cheapest way to comply. Food-based biofuels may seem to be the most logical answer.
They are available on the market today, relatively cheap compared to alternatives, and can be used in existing engines without major modifications. For an industry that could be under strong regulatory pressure, this combination is difficult to ignore.
But cheap compliance can become expensive. The costs just tend to fall somewhere else: on food consumers in importing countries, on forests and peatlands, and eventually, on the shipowners and investors who have chosen the wrong fuel at the wrong moment.
Shipping currently burns around 300m tonnes of fossil fuels per year. Even a partial shift toward vegetable oil-based biofuels would represent a demand shock of historic proportions.
Research by the International Council on Clean Transportation estimates that under an IMO framework without adequate safeguards, vegetable oil demand from shipping alone could reach 140bn litres by 2035 — roughly triple the entire current global market for vegetable oil biofuels.
The consequence is concerning: global vegetable oil prices would rise, perhaps tripling.
Those price increases do not fall equally. They fall hardest on the countries and communities least able to absorb them: net food-importing nations, low-income households and the 673m people already living with food insecurity. Shipping’s green transition risks becoming a private gain made at public expense and scaling up biofuels demand to shipping’s level of consumption would be far larger than anything we have witnessed before.
If this was not enough, using vegetable oil-based biofuels can increase net greenhouse gas emissions because of a phenomenon called indirect land-use change (ILUC). ILUC occurs when land used for growing food is used to produce biofuel feedstocks instead.
Because the demand for food persists, and because the prices of these food crops are now higher, it can become economically attractive to cut down forests and drain peatlands to make way for agriculture. This causes the carbon once stored in forests and soils to be released to the atmosphere, contributing to global warming.
Luckily, the IMO does not need to reinvent the wheel when it comes to common sense protections against these sorts of biofuels.
The EU has already designated palm oil and, most recently, soya as feedstocks with high risks for spurring ILUC. Other European transport policies, i.e. FuelEU Maritime and ReFuel EU for aviation, exclude food- and feed-based biofuels entirely.
In the US, California's Low Carbon Fuel Standard caps credits from soya, canola and sunflower oils. The International Civil Aviation Organization CORSIA programme applies quantitative ILUC emission factors that limit the amount of GHG reduction airlines can claim when using food-based biofuels.
A shipowner who builds a compliance strategy around palm or soya-based biofuels today is not buying a solution but only locking themselves into a feedstock that could face growing legislative risk across its main markets.
The deeper problem is what food-based biofuels are pushing out. Every dollar directed toward crop biofuels is a dollar not flowing toward low-emission fuels that decarbonisation actually requires — meaning, those produced with renewable electricity. Several shipowners have ordered vessels specifically designed to run on ammonia or methanol and ports are beginning to invest in the infrastructure to support them.
Investing in food-based biofuels will only delay this transition.
The solutions are simple. First, cap or better yet, exclude the use of food- and feed-based biofuels from complying under IMO policies. Practically, this means classifying feedstocks like palm and soy as high-ILUC-risk under the IMO lifecycle assessment guidelines, enabling restrictions on those feedstocks in IMO regulations. Second, reward the production and use of second-generation biofuels made from wastes or renewable e-fuels.
Cheap biofuels are an illusion; someone, somewhere is paying the price through higher food prices, deforested lands and disruptive climate impacts.
Shipowners that choose those biofuels expose themselves to the risk that regulators follow the lead of the EU, California, and ICAO. So, let’s avoid this expensive distraction and design an IMO regulation that makes shipping decarbonisation truly begin.
Bryan Comer is marine program director at the International Council on Clean Transportation Lloyds List
--------
Our efforts to halt global forest loss aren’t working: new research
The loss of our forests is one of the biggest environmental challenges of our time.
Forests are key to curbing carbon emissions and protecting the plants, animals and humans that call Earth home.
However, we’re losing our forests at an alarming rate. Our new study shows we’ve lost roughly 300 million hectares over the past 11 years. However, it’s unclear how much of this forest has since been restored.
Either way, we’re losing a significant amount of forest despite efforts to protect it through certification, protection and other conservation schemes.
A global effort
The European Union has introduced policies aimed at eliminating products and supply chains that contribute to forest loss. Examples include palm oil, soy, coffee, cocoa, timber and rubber.
Halting forest loss is also a major focus of international declarations, such as the Glasgow Leaders’ Declaration on Forests and Land Use. This declaration, which more than 140 countries endorsed at the COP26 conference in 2021, aims to strengthen global efforts to reduce deforestation and land degradation.
Over the past three decades, the international community has launched forest management certification schemes to protect our forests. These include those developed by the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification.
These are voluntary, market-based schemes meant to ensure forests are being properly managed. These schemes aren’t state-controlled, but rely on the market to create incentives to pressure companies to comply. They do this by getting accredited auditors to independently assess forest management practices against approved or endorsed forest management standards. These schemes also encourage companies to buy products sourced from certified forests. About 10% of the world’s forests are currently certified under these schemes, equal to more than 400 million hectares.
Protected areas may also help curb forest loss. Protected areas are defined locations designed to help conserve nature. Globally, roughly 18% of our forests are in protected areas.
These two strategies should be reducing, or even stopping, forest loss. But they’re failing to do so at a global scale.
So, what’s actually happening?
In our new study, we measured how much forest each country lost each year, due to fire or other causes, from 2013 to 2023. An example of a fire-related cause is a severe fire that engulfs the tree canopy. Forest loss as a result of logging for agricultural or urban development is an example of a non-fire cause. We then compared this to how much forest area is certified or protected in each country.
Between 2013 and 2023, we estimate the amount of forest in protected areas increased from about 868 million hectares to 990 million hectares.
Despite this, our study shows over that period between 21 million and 32 million hectares of forest were lost each year. This tracks with earlier research finding a similar, and no less alarming, trend between 2002 and 2011.
Our study also found no evidence linking more certification and protected areas with less forest loss, at a country level. Between 2013 and 2023, nearly half of global forest loss happened in four countries. These include Russia, Brazil, Canada and the United States. This was mainly caused by fire in countries north of the equator, and non-fire causes in tropical regions such as Brazil.
What can we do?
Forest certification schemes and protected areas, while effective at a forest or local scale, may not have much of an impact on forest loss on a global level. But that’s not a reason to get rid of them.
Instead, we should consider them as just some of the tools in the toolbox. And to make them more effective, we should rethink how they are governed and implemented.
At present, forest management certification schemes are market-based. This means they are largely influenced by private companies. In contrast, most protected areas are managed by state actors, such as a country’s government.
These are two very different forms of governance that historically have not been applied in a coordinated way. For example, a government may decide to add more forest to a protected area. But if it doesn’t have the support of private companies, this may inadvertently lead to negative forest leakage. This is where unprotected forests become more vulnerable to forms of intensified logging, such as clearfelling. Clearfelling involves removing most or all of an area’s trees in one operation, meaning old-growth trees and other key parts of the forest may be lost. To avoid this, we need to coordinate certification and protected areas better.
Another approach that’s been effective is Indigenous-led management. This gives Indigenous communities control over how land is used and managed, including preventing deforestation and other types of illegal forest loss. Recent research suggests this approach can be effective in conserving forests, when used in conjunction with other strategies.
We also need to use the resources we get from our forests more appropriately and efficiently. The vast majority of logs cut from forests are used in short-lived and often disposable products, such as copy paper and pallets. Using precious forests for these low-value products is wasteful and inefficient. It might help reduce forest loss if these products came from recycled sources. To protect our forests, we need to do more with less. Chris Taylor, David Lindenmayer, Maldwyn John Evans, The Conversation
--------
April 20, 2026
Iran war spurs surge in palm oil exports from Southeast Asia
Malaysian and Indonesian supply threatened by fertilizer costs and heat
KUALA LUMPUR -- Demand for crude palm oil has surged as the war in Iran drives countries to build up stockpiles, lifting Malaysian and Indonesian exports to their highest level in months and raising concerns over longer-term supply constraints.
The CPO price is under upward pressure in the near term as concerns about a potential supply shortage lead countries and companies to build up inventories.
Palm oil is used as an ingredient in a wide variety of foods, from cooking oil to margarine and instant noodles. In the longer term, the rise in crude oil prices caused by the Iran war has also boosted demand for palm oil as a feedstock for biofuels.
Fertilizer prices have risen due to the blockade of the Strait of Hormuz and damage to production facilities caused by the fighting, leading small-scale farmers to hold back on new planting.
High temperatures caused by climate change are also hampering palm oil harvests and are expected to reduce production in Malaysia and Indonesia, which together account for 85% of global production.
As a result, Malaysian palm oil futures, which serve as an international benchmark for palm oil prices, began to rise with the outbreak of the Iran war and reached their highest level since December 2024 in April.
The rising CPO price is especially concerning for the food sector. According to the United Nations' Food and Agriculture Organization (FAO), the food price index in March hit 128.5 points, up 2.4% from February. The Vegetable Oil Price Index increased by 5.1% from February, which is 13.2% higher than its year-earlier level.
Kuala Lumpur-based Public Investment Bank analyst Chong Hoe Leong said cooking oil is expected to rise 20% globally. "This will be reflected some 2 months later," he said. "Currently the market is selling old stocks."
In Japan, Nikkei reported earlier this month that the wholesale price of palm oil rose 17 yen ($0.11) in April to 328~338 yen per kilogram.
"International quotations for palm, soy, sunflower and rapeseed oil all rose, reflecting spillover effects from the sharp increases in crude oil prices, which catalyzed expectations of stronger demand for biofuels," the FAO said in its latest report. Nikkei Asia
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Indonesia to Halt Low-Grade Diesel Imports in July: Minister
Surabaya. Indonesia will stop importing low-grade diesel fuel starting July 1 as the government implements its mandatory B50 biodiesel program, Agriculture Minister Andi Amran Sulaiman said on Sunday.
The policy will raise the palm oil-based biodiesel blend in subsidized low-grade diesel, locally known as Solar, from the current 40% to 50%.
“We will no longer import Solar starting July 1, when B50 takes effect. This is Indonesia’s future energy because the source comes from palm oil,” Amran said in Surabaya.
Indonesia has aggressively expanded biofuel usage as part of efforts to reduce dependence on imported petroleum products and strengthen domestic energy security.
Amran added that the government is also developing biofuel blends for gasoline in cooperation with state-owned plantation company Perkebunan Nusantara IV.
Earlier this year, Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia had recorded a surplus of around 1.4 billion liters of subsidized low-grade diesel fuel.
The surplus has emerged alongside a sharp increase in biodiesel production under Indonesia’s B40 policy, which mandates a 40% biodiesel blend in diesel fuel sold domestically. Jakarta Globe
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Biofuels: Indonesia's strategic shield against energy volatility
Indonesia is navigating renewed turbulence in global energy markets as oil prices fluctuate amid persistent geopolitical uncertainty and supply disruptions.
With crude oil recently hovering around the US$100-per-barrel level, volatility in global energy markets continues to expose structural vulnerabilities for net importers such as Indonesia.
Disruptions in key maritime chokepoints, including the Strait of Hormuz, which handles roughly one-fifth of global oil flows, have reinforced concerns over supply security.
Rising geopolitical tensions involving Iran and the United States have further heightened market sensitivity, where even limited signals can trigger sharp price movements across the global energy benchmarks.
For Indonesia, the impact is direct. As domestic energy demand continues to rise while production remains constrained, the country faces higher import costs, mounting pressure on energy subsidies, and potential inflationary spillovers. The gap leaves Southeast Asia’s largest economy exposed to external shocks beyond its control.
Against this backdrop, biofuels—particularly palm oil-based biodiesel—have emerged as a key policy instrument to reduce exposure to global energy volatility while supporting longer-term energy security goals.
Biofuel as a buffer
Energy policy in Indonesia has increasingly been framed around sovereignty and resilience, with President Prabowo Subianto emphasizing the need to accelerate biodiesel expansion as part of efforts to reduce import dependence.
The government is preparing for a move toward a B50 biodiesel mandate, which would raise the blend to 50 percent fatty acid methyl ester and 50 percent diesel fuel. The proposal builds on Indonesia’s phased blending policy, which has progressed from B20 to B35 and is currently anchored at B40.
Implementation efforts are also being stepped up at the technical level. The Energy and Mineral Resources Ministry has indicated that higher biodiesel blending could reduce diesel imports while strengthening domestic supply stability, according to Minister Bahlil Lahadalia.
The government has set a biodiesel allocation target of about 15.65 million kiloliters for 2026, underscoring the program’s continued role in the national energy strategy.
A key advantage of biodiesel is its compatibility with existing fuel infrastructure, allowing for relatively fast deployment compared with other energy transition options that require major system restructuring and higher capital investment.
Impact on upstream sector
The expansion of biodiesel demand is reshaping Indonesia’s agricultural sector, particularly palm oil, which serves as the main feedstock for biodiesel production.
As one of the world’s largest palm oil producers, Indonesia is seeking to balance energy security objectives with its role as a major exporter. The policy aims to boost domestic absorption of palm oil without sharply reducing export capacity.
The agricultural sector has become more closely tied to the energy transition agenda, with Agriculture Minister Andi Amran Sulaiman noting that stronger biodiesel demand could increase value addition domestically while supporting farmer incomes across producing regions.
This reflects a broader structural shift in which commodity production is increasingly integrated into the national energy strategy rather than being driven solely by export markets.
At the same time, concerns remain over fiscal sustainability. Sudarsono Soedomo, a professor at the Bogor Agricultural Institute, said that while biodiesel reduces import dependence, it introduces longer-term financing pressures that need to be carefully managed to maintain policy durability.
Gradual transition
Beyond biodiesel, Indonesia is also expanding bioenergy development through bioethanol, using feedstocks such as sugarcane and cassava as part of a broader effort to diversify its energy mix.
Biofuels can be integrated into existing fuel distribution systems, allowing for faster deployment and more immediate impact compared with infrastructure-heavy renewable alternatives.
This makes them a practical tool for short-term stabilization in a volatile global oil market, particularly for emerging economies facing rising energy demand.
Indonesia’s reliance on imported energy exposes the economy to global oil price swings that can affect inflation, fiscal balances, and household purchasing power.
By substituting imported diesel with domestically produced biodiesel, policymakers aim to reduce exposure to external price shocks and stabilize energy costs over the medium term.
However, effectiveness depends on several structural conditions, including a stable palm oil supply, coordinated logistics across sectors, and efficient industrial integration.
Fiscal management remains a central constraint. Biofuel programs rely on pricing mechanisms and subsidy frameworks that must be carefully balanced to avoid long-term budget strain while maintaining policy continuity.
Indonesia’s approach reflects a pragmatic transition strategy, prioritizing immediate resilience while maintaining longer-term diversification goals.
Rather than pursuing a rapid overhaul of its energy system, the country is leveraging domestic resources to reduce vulnerability to external shocks while maintaining supply stability.
Ultimately, the success of the biodiesel strategy will depend on balancing three variables: rising energy demand, agricultural supply constraints, and fiscal sustainability.
If managed effectively, biofuels could serve as a central pillar in reducing import dependence and strengthening long-term energy resilience.
In a global environment marked by persistent energy uncertainty, domestically anchored fuels provide Indonesia with a critical buffer. Beyond their economic function, biofuels are increasingly part of a broader resilience framework linking energy security, agriculture, and macroeconomic stability.
As geopolitical risks and supply disruptions continue to shape global energy markets, Indonesia’s reliance on biofuels reflects a pragmatic effort to stabilize exposure to volatility while managing a gradual and structured energy transition. Antara News
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Telkom and PGN sign biomethane MoU for Indonesian data centres
Indonesian state-owned telecoms giant PT Telkom Indonesia and gas distributor PT Perusahaan Gas Negara (PGN) have signed a memorandum of understanding to advance the use of biomethane and other low-carbon energy solutions for data centre development.
The agreement was signed in Jakarta by Telkom president director Dian Siswarini and PGN president director Arief Kurnia Risdianto, with senior officials from sovereign wealth fund Danantara Indonesia also present.
Under the partnership, Telkom will develop data centre ecosystems requiring low-emission energy, while PGN will supply cleaner energy sources including biomethane derived from palm oil waste in Sumatra. The two companies will also conduct joint studies and explore green energy implementation for data centre operations in both domestic and international markets.
Telkom has identified five strategic data centre locations — Cikarang, Batam, Serpong, Sentul and Surabaya — all of which are already connected to PGN's gas pipeline infrastructure.
Arief said PGN is increasingly positioning itself as a clean energy company rather than a conventional gas supplier, with the biomethane initiative creating new value-added opportunities while supporting Indonesia's broader energy transition.
Siswarini described the collaboration as supporting Indonesia's ambition to become a regional digital hub, saying it would strengthen the country's digital sovereignty and support the development of sustainable data centres.
Beyond the domestic partnership, Telkom is pursuing green infrastructure internationally through its data centre subsidiary NeutraDC, which has been working with Singapore's Sembcorp Development since 2025 on integrated digital infrastructure and sustainable energy services. Bioenergy News
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Domestic Demand for Palm Oil Exceeds 2.5m Metric Tonnes Annually – FG
The Federal Government has disclosed that Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this on Thursday at the National Stakeholders Meeting on the Joint Development of Nigeria’s Palm Oil Production Capacity in Abuja.
Mr Kyari, who was represented by his senior technical assistant, Ibrahim Alkali, described the meeting as a strategic platform requiring clarity of purpose, alignment of interests and decisive action to reposition the palm oil sector.
The minister recalled that Nigeria was a global leader in palm oil production in the 1960s, accounting for over 40 per cent of global supply.
According to him, palm oil was a major export commodity and a key driver of rural livelihoods and industrial development at the time.
He, however, noted that the country’s production capacity had declined over the years.
“Today, Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes,” he said.
Mr Kyari said the shortfall of more than one million metric tonnes annually has led to the expenditure of between $500 million and $600 million on imports.
“What this means is that we are exporting opportunities and importing what we have the capacity to produce,” he said.
He added that Nigeria has over three million hectares of land suitable for oil palm cultivation, much of which remains underutilised.
Mr Kyari also noted that global demand for palm oil continues to rise, with the market valued at over $70 billion annually across food processing, cosmetics, pharmaceuticals and biofuels.
He stressed that Nigeria’s challenge was not lack of potential but the scale and coordination of its response.
The minister said the federal government, under President Bola Tinubu, was prioritising agriculture as part of its economic diversification agenda under the Renewed Hope Agenda.
He said the ministry had taken steps to reposition the oil palm sector through the validation of the National Oil Palm Development Strategy.
Mr Kyari called on stakeholders to work together to unlock the full potential of the sector.
Earlier, the Permanent Secretary, Ministry of Agriculture and Food Security, Marcus Ogunbiyi, said the meeting was timely and necessary to transform the palm oil industry.
He said the presence of stakeholders reflected a shared commitment to reposition the sector for sustainable growth, national prosperity and global competitiveness.
Mr Ogunbiyi was represented by Abba Waziri, director of farm input support services in the ministry.
In a presentation, the Managing Director of Mass Industrial Development and Logistics, Emmanuel Anyaralu, outlined strategies for strengthening the palm oil sector through strategic partnerships.
He said the development strategy was designed to stimulate rural economies, create jobs and enhance food security. Agro Nigeria
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Wilmar shareholder questions board’s performance after costly legal woes
SINGAPORE - A strongly worded submission from a minority investor over Wilmar International’s costly legal troubles questioned whether its board has the independence to safeguard shareholder interests.
In response, Wilmar said it has made board changes to strengthen its independence and oversight.
The questions were submitted ahead of the company’s April 23 annual general meeting by both minority investors and the Securities Investors Association (Singapore), or SIAS, and disclosed on the Singapore Exchange on April 17. The practice is meant to foster greater engagement between shareholders and company management.
Wilmar’s unnamed minority shareholder said severe regulatory penalties in legal cases in the past year have “further exposed” what the shareholder described as a board that had become “deeply insular and rigid”, and was “living in a comfortable bubble”.
The shareholder acknowledged recent moves to reshuffle board committees, but said these did not go far enough, arguing that “moving the same faces around does not create true independence” if the board remains a “stagnant group” where “complacency and groupthink inevitably set in”.
The shareholder noted that despite directors being “among the most highly remunerated”, investors were still dealing with legal issues, a rising debt profile and reduced dividends.
The minority shareholder also asked how shareholders could trust that a board made up of longstanding members had the “independent teeth” to safeguard their interests, and called for a clearer and more transparent succession and renewal plan over the next five to 10 years. Straits Times
Iran war spurs surge in palm oil exports from Southeast Asia
Malaysian and Indonesian supply threatened by fertilizer costs and heat
KUALA LUMPUR -- Demand for crude palm oil has surged as the war in Iran drives countries to build up stockpiles, lifting Malaysian and Indonesian exports to their highest level in months and raising concerns over longer-term supply constraints.
The CPO price is under upward pressure in the near term as concerns about a potential supply shortage lead countries and companies to build up inventories.
Palm oil is used as an ingredient in a wide variety of foods, from cooking oil to margarine and instant noodles. In the longer term, the rise in crude oil prices caused by the Iran war has also boosted demand for palm oil as a feedstock for biofuels.
Fertilizer prices have risen due to the blockade of the Strait of Hormuz and damage to production facilities caused by the fighting, leading small-scale farmers to hold back on new planting.
High temperatures caused by climate change are also hampering palm oil harvests and are expected to reduce production in Malaysia and Indonesia, which together account for 85% of global production.
As a result, Malaysian palm oil futures, which serve as an international benchmark for palm oil prices, began to rise with the outbreak of the Iran war and reached their highest level since December 2024 in April.
The rising CPO price is especially concerning for the food sector. According to the United Nations' Food and Agriculture Organization (FAO), the food price index in March hit 128.5 points, up 2.4% from February. The Vegetable Oil Price Index increased by 5.1% from February, which is 13.2% higher than its year-earlier level.
Kuala Lumpur-based Public Investment Bank analyst Chong Hoe Leong said cooking oil is expected to rise 20% globally. "This will be reflected some 2 months later," he said. "Currently the market is selling old stocks."
In Japan, Nikkei reported earlier this month that the wholesale price of palm oil rose 17 yen ($0.11) in April to 328~338 yen per kilogram.
"International quotations for palm, soy, sunflower and rapeseed oil all rose, reflecting spillover effects from the sharp increases in crude oil prices, which catalyzed expectations of stronger demand for biofuels," the FAO said in its latest report. Nikkei Asia
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Indonesia to Halt Low-Grade Diesel Imports in July: Minister
Surabaya. Indonesia will stop importing low-grade diesel fuel starting July 1 as the government implements its mandatory B50 biodiesel program, Agriculture Minister Andi Amran Sulaiman said on Sunday.
The policy will raise the palm oil-based biodiesel blend in subsidized low-grade diesel, locally known as Solar, from the current 40% to 50%.
“We will no longer import Solar starting July 1, when B50 takes effect. This is Indonesia’s future energy because the source comes from palm oil,” Amran said in Surabaya.
Indonesia has aggressively expanded biofuel usage as part of efforts to reduce dependence on imported petroleum products and strengthen domestic energy security.
Amran added that the government is also developing biofuel blends for gasoline in cooperation with state-owned plantation company Perkebunan Nusantara IV.
Earlier this year, Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia had recorded a surplus of around 1.4 billion liters of subsidized low-grade diesel fuel.
The surplus has emerged alongside a sharp increase in biodiesel production under Indonesia’s B40 policy, which mandates a 40% biodiesel blend in diesel fuel sold domestically. Jakarta Globe
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Biofuels: Indonesia's strategic shield against energy volatility
Indonesia is navigating renewed turbulence in global energy markets as oil prices fluctuate amid persistent geopolitical uncertainty and supply disruptions.
With crude oil recently hovering around the US$100-per-barrel level, volatility in global energy markets continues to expose structural vulnerabilities for net importers such as Indonesia.
Disruptions in key maritime chokepoints, including the Strait of Hormuz, which handles roughly one-fifth of global oil flows, have reinforced concerns over supply security.
Rising geopolitical tensions involving Iran and the United States have further heightened market sensitivity, where even limited signals can trigger sharp price movements across the global energy benchmarks.
For Indonesia, the impact is direct. As domestic energy demand continues to rise while production remains constrained, the country faces higher import costs, mounting pressure on energy subsidies, and potential inflationary spillovers. The gap leaves Southeast Asia’s largest economy exposed to external shocks beyond its control.
Against this backdrop, biofuels—particularly palm oil-based biodiesel—have emerged as a key policy instrument to reduce exposure to global energy volatility while supporting longer-term energy security goals.
Biofuel as a buffer
Energy policy in Indonesia has increasingly been framed around sovereignty and resilience, with President Prabowo Subianto emphasizing the need to accelerate biodiesel expansion as part of efforts to reduce import dependence.
The government is preparing for a move toward a B50 biodiesel mandate, which would raise the blend to 50 percent fatty acid methyl ester and 50 percent diesel fuel. The proposal builds on Indonesia’s phased blending policy, which has progressed from B20 to B35 and is currently anchored at B40.
Implementation efforts are also being stepped up at the technical level. The Energy and Mineral Resources Ministry has indicated that higher biodiesel blending could reduce diesel imports while strengthening domestic supply stability, according to Minister Bahlil Lahadalia.
The government has set a biodiesel allocation target of about 15.65 million kiloliters for 2026, underscoring the program’s continued role in the national energy strategy.
A key advantage of biodiesel is its compatibility with existing fuel infrastructure, allowing for relatively fast deployment compared with other energy transition options that require major system restructuring and higher capital investment.
Impact on upstream sector
The expansion of biodiesel demand is reshaping Indonesia’s agricultural sector, particularly palm oil, which serves as the main feedstock for biodiesel production.
As one of the world’s largest palm oil producers, Indonesia is seeking to balance energy security objectives with its role as a major exporter. The policy aims to boost domestic absorption of palm oil without sharply reducing export capacity.
The agricultural sector has become more closely tied to the energy transition agenda, with Agriculture Minister Andi Amran Sulaiman noting that stronger biodiesel demand could increase value addition domestically while supporting farmer incomes across producing regions.
This reflects a broader structural shift in which commodity production is increasingly integrated into the national energy strategy rather than being driven solely by export markets.
At the same time, concerns remain over fiscal sustainability. Sudarsono Soedomo, a professor at the Bogor Agricultural Institute, said that while biodiesel reduces import dependence, it introduces longer-term financing pressures that need to be carefully managed to maintain policy durability.
Gradual transition
Beyond biodiesel, Indonesia is also expanding bioenergy development through bioethanol, using feedstocks such as sugarcane and cassava as part of a broader effort to diversify its energy mix.
Biofuels can be integrated into existing fuel distribution systems, allowing for faster deployment and more immediate impact compared with infrastructure-heavy renewable alternatives.
This makes them a practical tool for short-term stabilization in a volatile global oil market, particularly for emerging economies facing rising energy demand.
Indonesia’s reliance on imported energy exposes the economy to global oil price swings that can affect inflation, fiscal balances, and household purchasing power.
By substituting imported diesel with domestically produced biodiesel, policymakers aim to reduce exposure to external price shocks and stabilize energy costs over the medium term.
However, effectiveness depends on several structural conditions, including a stable palm oil supply, coordinated logistics across sectors, and efficient industrial integration.
Fiscal management remains a central constraint. Biofuel programs rely on pricing mechanisms and subsidy frameworks that must be carefully balanced to avoid long-term budget strain while maintaining policy continuity.
Indonesia’s approach reflects a pragmatic transition strategy, prioritizing immediate resilience while maintaining longer-term diversification goals.
Rather than pursuing a rapid overhaul of its energy system, the country is leveraging domestic resources to reduce vulnerability to external shocks while maintaining supply stability.
Ultimately, the success of the biodiesel strategy will depend on balancing three variables: rising energy demand, agricultural supply constraints, and fiscal sustainability.
If managed effectively, biofuels could serve as a central pillar in reducing import dependence and strengthening long-term energy resilience.
In a global environment marked by persistent energy uncertainty, domestically anchored fuels provide Indonesia with a critical buffer. Beyond their economic function, biofuels are increasingly part of a broader resilience framework linking energy security, agriculture, and macroeconomic stability.
As geopolitical risks and supply disruptions continue to shape global energy markets, Indonesia’s reliance on biofuels reflects a pragmatic effort to stabilize exposure to volatility while managing a gradual and structured energy transition. Antara News
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Telkom and PGN sign biomethane MoU for Indonesian data centres
Indonesian state-owned telecoms giant PT Telkom Indonesia and gas distributor PT Perusahaan Gas Negara (PGN) have signed a memorandum of understanding to advance the use of biomethane and other low-carbon energy solutions for data centre development.
The agreement was signed in Jakarta by Telkom president director Dian Siswarini and PGN president director Arief Kurnia Risdianto, with senior officials from sovereign wealth fund Danantara Indonesia also present.
Under the partnership, Telkom will develop data centre ecosystems requiring low-emission energy, while PGN will supply cleaner energy sources including biomethane derived from palm oil waste in Sumatra. The two companies will also conduct joint studies and explore green energy implementation for data centre operations in both domestic and international markets.
Telkom has identified five strategic data centre locations — Cikarang, Batam, Serpong, Sentul and Surabaya — all of which are already connected to PGN's gas pipeline infrastructure.
Arief said PGN is increasingly positioning itself as a clean energy company rather than a conventional gas supplier, with the biomethane initiative creating new value-added opportunities while supporting Indonesia's broader energy transition.
Siswarini described the collaboration as supporting Indonesia's ambition to become a regional digital hub, saying it would strengthen the country's digital sovereignty and support the development of sustainable data centres.
Beyond the domestic partnership, Telkom is pursuing green infrastructure internationally through its data centre subsidiary NeutraDC, which has been working with Singapore's Sembcorp Development since 2025 on integrated digital infrastructure and sustainable energy services. Bioenergy News
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Domestic Demand for Palm Oil Exceeds 2.5m Metric Tonnes Annually – FG
The Federal Government has disclosed that Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this on Thursday at the National Stakeholders Meeting on the Joint Development of Nigeria’s Palm Oil Production Capacity in Abuja.
Mr Kyari, who was represented by his senior technical assistant, Ibrahim Alkali, described the meeting as a strategic platform requiring clarity of purpose, alignment of interests and decisive action to reposition the palm oil sector.
The minister recalled that Nigeria was a global leader in palm oil production in the 1960s, accounting for over 40 per cent of global supply.
According to him, palm oil was a major export commodity and a key driver of rural livelihoods and industrial development at the time.
He, however, noted that the country’s production capacity had declined over the years.
“Today, Nigeria produces approximately 1.4 million metric tonnes of palm oil annually, while domestic demand exceeds 2.5 million metric tonnes,” he said.
Mr Kyari said the shortfall of more than one million metric tonnes annually has led to the expenditure of between $500 million and $600 million on imports.
“What this means is that we are exporting opportunities and importing what we have the capacity to produce,” he said.
He added that Nigeria has over three million hectares of land suitable for oil palm cultivation, much of which remains underutilised.
Mr Kyari also noted that global demand for palm oil continues to rise, with the market valued at over $70 billion annually across food processing, cosmetics, pharmaceuticals and biofuels.
He stressed that Nigeria’s challenge was not lack of potential but the scale and coordination of its response.
The minister said the federal government, under President Bola Tinubu, was prioritising agriculture as part of its economic diversification agenda under the Renewed Hope Agenda.
He said the ministry had taken steps to reposition the oil palm sector through the validation of the National Oil Palm Development Strategy.
Mr Kyari called on stakeholders to work together to unlock the full potential of the sector.
Earlier, the Permanent Secretary, Ministry of Agriculture and Food Security, Marcus Ogunbiyi, said the meeting was timely and necessary to transform the palm oil industry.
He said the presence of stakeholders reflected a shared commitment to reposition the sector for sustainable growth, national prosperity and global competitiveness.
Mr Ogunbiyi was represented by Abba Waziri, director of farm input support services in the ministry.
In a presentation, the Managing Director of Mass Industrial Development and Logistics, Emmanuel Anyaralu, outlined strategies for strengthening the palm oil sector through strategic partnerships.
He said the development strategy was designed to stimulate rural economies, create jobs and enhance food security. Agro Nigeria
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Wilmar shareholder questions board’s performance after costly legal woes
SINGAPORE - A strongly worded submission from a minority investor over Wilmar International’s costly legal troubles questioned whether its board has the independence to safeguard shareholder interests.
In response, Wilmar said it has made board changes to strengthen its independence and oversight.
The questions were submitted ahead of the company’s April 23 annual general meeting by both minority investors and the Securities Investors Association (Singapore), or SIAS, and disclosed on the Singapore Exchange on April 17. The practice is meant to foster greater engagement between shareholders and company management.
Wilmar’s unnamed minority shareholder said severe regulatory penalties in legal cases in the past year have “further exposed” what the shareholder described as a board that had become “deeply insular and rigid”, and was “living in a comfortable bubble”.
The shareholder acknowledged recent moves to reshuffle board committees, but said these did not go far enough, arguing that “moving the same faces around does not create true independence” if the board remains a “stagnant group” where “complacency and groupthink inevitably set in”.
The shareholder noted that despite directors being “among the most highly remunerated”, investors were still dealing with legal issues, a rising debt profile and reduced dividends.
The minority shareholder also asked how shareholders could trust that a board made up of longstanding members had the “independent teeth” to safeguard their interests, and called for a clearer and more transparent succession and renewal plan over the next five to 10 years. Straits Times
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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
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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
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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
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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
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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
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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
- 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
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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
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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
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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
--------
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
--------
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
--------
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
--------
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
--------
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
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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
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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
--------
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
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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
--------
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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|
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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
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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
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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
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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
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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:
- 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
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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
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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
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Palm oil news. CSPO Watch April 2026