Iran war: Indonesia’s B50 biodiesel plan faces palm oil supply, price uncertainty

Indonesia’s vast palm oil production supports its biofuel development. (Photo: iStock)

The closure of the Strait of Hormuz has reignited debate over accelerating bioenergy development as an alternative to fossil fuels. Indonesia, the world’s largest palm oil exporter, is considering reviving its B50 biodiesel program.

However, industry representatives warn that expanding biodiesel production capacity or raising blending mandates could reduce export volumes. Expectations of strong biodiesel demand have already pushed up global palm oil prices, adding further uncertainty to the proposed B50 rollout.