Oilseeds and Products Update
ID2025-0045 – Post raises its forecast for soybean meal imports in 2025/26, driven by stronger poultry demand and increased requirements from the expanding Free Nutritious Meal (MBG) program. Soybean consumption is also projected to recover in 2025/26 following contracted use related to weak household consumption in early 2025. The Government of Indonesia (GOI) has reaffirmed its commitment to implement the B50 biodiesel mandate by mid-2026, despite recent plantation seizures that may impact production.
Biofuels Annual
ID2025-0029 – Indonesia’s aggressive biodiesel blending mandate rising from 35 percent to 40 percent in early 2025 has resulted in no exports due to limited production capacity. Expansion to B50 will require both significant subsidies and additional production capacity. The bioethanol market is projected for small growth in 2025, with E5 sales expected to remain limited in 2025 as the majority of the gasoline market is captured by subsidized fuel. In May and June 2025, the Government of Indonesia issued two conflicting regulations on biofuels, with one appearing to block biofuel imports while the other simplifies import processes. It remains unclear how these regulatory changes relate to the bilateral trade deal announced on July 22, 2025.
Oilseeds and Products Update
ID2024-0048 – Indonesia’s B40 biodiesel blending mandate program, which is expected to roll out in 2025, is projected to increase palm oil use by 3 percent to 22 million metric tons in 2024/25. Soybean consumption recovered in 2023/24 as soybean retail prices continue to decrease. Weak performance in the feed mill industry reduced 2023/24 soybean meal use lower than previously expected. Due to lower prices, Indonesia’s imports of U.S. soybean meal rose an estimated 43 percent to 167,000 MT in 2023/24.
Biofuels Annual
ID2024 – 0018 – Indonesia’s fuel grade ethanol consumption remains small and localized in 2024, a year after the restart of the ethanol program. The formation of a taskforce for sugarcane expansion is meant to advance Indonesia’s self-sufficiency goals in sugar and bioethanol. Biodiesel production is projected to rise by 3 percent to 13 billion liters in 2024 on expected higher diesel use combined with the government-mandated 35-percent blending rate. Combined palm oil mill effluent (POME) and palm fatty acid distillate (PFAD) exports remain high on continued demand from overseas markets, lower export levies relative to crude palm oil, and a lack of incentives for local refiners to use biodiesel feedstocks other than crude palm oil.
Oilseeds and Products Annual
ID2024-0004
Indonesia palm oil production is forecast to rise marginally to 47 million metric tons (MMT) in 2024/25 on expected recovery from extreme weather in 2023. The mandatory biodiesel program continues to absorb significant domestic palm oil consumption, limiting exportable volumes. Feed industry growth pushed soybean meal use up to 5.8 MMT in 2024/25.
Biofuels Annual
ID2023-0018
The introduction of E5 gasoline in July 2023 restarted Indonesia’s bioethanol consumption after years of inactivity, albeit to a modest start of an estimated 2 million liters for 2023 due to E5’s price premium in a price sensitive market. Meanwhile, Indonesia’s new B35 biodiesel blending mandate reached nationwide coverage in August 2023 and is expected to raise biodiesel consumption 25 percent to 13 billion liters. The government of Indonesia (GOI) continues to carry out tests for renewable diesel (HDRD) and sustainable aviation fuel (SAF).
Oilseeds and Products Update
ID2023-0002
Indonesia 2022/23 palm oil consumption is expected to rise to 19.4 million metric tons (MMT) on increased use for biodiesel production, as the Government of Indonesia (GOI) rolls out higher blending rates for its 2023 mandatory biodiesel blending program. The GOI is considering extending its soybean subsidy program into 2023, which would continue to impact the soybean market.
Indonesia to Implement Biodiesel B35 in February 2023
ID2023-0001
The Government of Indonesia is set to increase its biodiesel blending mandate from 30 percent to 35 percent in February 2023, a month later than initially announced. The new blending rate is expected to increase palm oil use for fuel to 12.5 million metric tons (MMT) based on the 2023 biodiesel allocation of 13.15 billion liters.