Johari: Indonesia’s biodiesel push benefiting global palm oil market
07/01/2025 (The Malaysian Reserve) - PLANTATION and Commodities Minister Datuk Seri Johari Abdul Ghani welcomes Indonesia’s move in stabilising the global palm oil market through its biodiesel production efforts.
“Indonesia produces about 48 million tonnes of palm oil annually, and they use nearly 25% of that for biodiesel. This initiative has greatly supported investments in the biodiesel sector,” he said at a press conference on Tuesday.
Although Indonesia’s mandatory 40% palm-oil-based biodiesel blend (B40) was postponed from its original start date of Jan 1, 2025, Johari commended the country’s dedication to incorporating palm oil into renewable energy initiatives, highlighting its beneficial influence on the market.
Furthermore, he emphasised the need for Malaysia to further explore opportunities in biodiesel production while maintaining its focus on exports.
“While Indonesia focuses on biodiesel for its domestic market, we have to ensure our products meet global demands,” he added.
Additionally, he encouraged Malaysian companies to continue innovating in biodiesel and other value-added products to strengthen their position in the competitive global palm oil industry.
The Indonesian government has introduced a 1.5 month transition period for companies to comply with the new B40 regulation, requiring a 40% palm oil blend in biodiesel. At present, the country operates with a 35% biodiesel mix.