Agriculture, Biofuel, Vegetable Oils, Oilseeds
February 05, 2026
INFOGRAPHIC: Vegetable oil markets seek clarity on Indonesia's biodiesel mandate
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HIGHLIGHTS
Indonesia's biodiesel mandate impacts global veg oil prices
Low crude oil prices challenge 50% biodiesel blend
High palm oil prices strain Indonesia's biofuel shift
As the world's largest palm oil supplier, Indonesia's pro-biodiesel stance has become a structural driver of global vegetable oil prices.
A higher blending mandate diverts more palm oil into domestic biofuels and reduces exportable supplies.
However, low crude oil prices along with high palm oil prices are challenging Indonesia's shift to a 50% biodiesel blend.
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