Higher Biodiesel Mandates in Indonesia to Curb Palm Oil Supplies

PALM OIL - KUALA LUMPUR. Implementation of higher biodiesel mandates in Indonesia, the world's biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said on Tuesday.

Indonesia currently has a mandatory 35% blend of palm oil-based fuel in biodiesel and is seeking to ramp up to biodiesel containing 40% palm oil to cut its energy imports. The plan, if implemented, could see biodiesel consumption rise to 16 million kilolitres next year.