Organization: Indonesia's mandatory blending policy for B50 biodiesel may benefit crude palm oil prices and demand.

Sina Finance reported on March 31st that Ivy Ng Lee Fang, an analyst at AllianceDBS Research, stated in a report that Indonesia plans to implement a mandatory B50 biodiesel blending policy, which requires a 50% blending ratio based on palm oil. This policy seems to be beneficial for crude palm oil prices and demand. She said that the policy could potentially increase demand by up to 4 million tons per year and tighten the exportable supply, although the implementation details are still unclear. Indonesia currently implements a B40 biodiesel blending policy. She added that the increase in crude palm oil prices may benefit upstream plantation owners, but the increase may be partially offset by rising fuel and fertilizer costs. AllianceDBS Research has raised its forecast for the average price of crude palm oil in 2026 from RM4,000 per ton to RM4,400 per ton, and for 2027 from RM4,200 per ton to RM4,500 per ton.