Jakarta (ANTARA) - Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, has said that the 50 percent biodiesel mix or B50 program can help prevent a decline in the prices of crude palm oil (CPO).“This is part of the national policy that can provide benefits and support the stability of CPO prices,” he added at a discussion on “Promoting Sustainability of Upstream Oil and Gas Industry for Energy Self-Sufficiency” in Jakarta on Tuesday.
According to Tanjung, currently, there are indications of CPO oversupply or excessive CPO stocks in the country. In addition, globally, CPO prices are also projected to decline, he noted.
If CPO prices decline, palm oil farmers would be affected the most, he said.
Domestic CPO prices have experienced a downward trend, based on the Crude Palm Oil Reference Price (HR CPO) issued by the Ministry of Trade. In April, the price of HR CPO stood at US$961.54 per metric ton.
The price fell in May to US$924.46 per metric ton, and then fell again in June to US$856.38 per metric ton. It rose in July to US$877.89 per metric ton.
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B50 biodiesel consists of a mixture of 50 percent biofuel and 50 percent conventional diesel.
Agriculture Minister Andi Amran Sulaiman earlier said the government is planning to divert 5.3 million tons of CPO exports for the B50 program. Data shows Indonesia exported 26 million tons of CPO in 2024, he added.
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He expressed the hope that the diversion of 5.3 million tons of Indonesian CPO will cause its prices to increase in the global market.
The Indonesian government is seeking to launch the B50 program in 2026. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent conventional diesel.
