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Indonesia, the world’s top palm oil producer and exporter, now faces a dilemma between energy transition and economic growth. (Photo by Nanang Sujana/CIFOR)
Indonesia’s plan to raise its palm oil-based biodiesel blend to 50% next year is now in question. A senior official from the Ministry of Energy and Mineral Resources (ESDM) acknowledged ongoing uncertainty over palm oil feedstock availability and production capacity.
The government is currently consulting with experts to assess the feasibility of the B50 policy. Some analysts also warn that rising renewable fuel demand could pose risks to both the environment and Indonesia’s palm oil export performance.
