Disclaimer: Policy details change and reports often conflict; check official sources. Conversions are approximate. For education and research only. Use at your own risk. Not financial advice.
Palm Biodiesel Tracker
Biodiesel mandates are now one of the biggest sources of palm oil demand. Indonesia blends 40% palm-based biodiesel into its diesel and plans 50%; Malaysia is at 10% for road transport. Each step up takes millions of tonnes off the export market. This page sets out the mandates, how much oil they absorb, and a calculator to test your own numbers.
Where the mandates stand
As reported by the sources linked; checked November 2026.
Indonesia: B40, with B50 planned
- 2026 allocation: 15.65 million kilolitres of biodiesel, set by energy ministry decree in December 2025 under the B40 programme (Petromindo).
- Road tests of B50 began in early December 2025; the energy minister said mandatory B50 would likely start in the second half of 2026, with the allocation to be revised for it (Hydrocarbon Processing, citing Reuters).
- At about 0.88 tonnes of oil per kilolitre, 15.65 million kL takes roughly 13.8 million tonnes of palm oil, about 24% of Indonesia's 2025 output of 56.6 million tonnes (GAPKI).
Malaysia: B10, moving towards B20
- In April 2026 the Plantation and Commodities Ministry said the National Biodiesel Programme runs at B10 for land transport and is being expanded gradually towards B20, supplied by 19 licensed biodiesel plants (BioEnergy Times, citing The Star).
- Some later reports describe a move to B15 from mid-2026. I could not confirm that from an official source, so this page keeps B10 as the national level.
- Malaysia's mandate is small next to Indonesia's: its diesel market is much smaller, so even B20 would absorb far less oil than one step in Indonesia.
Palm oil absorbed
–
Biodiesel–
Share of palm output–
Each +10 points of blend–
Malaysia's monthly exports, for scale–
Palm oil absorbed by blend level
| Blend | Biodiesel, million kL | Palm oil, million t | Share of palm output |
|---|
Does blending pay? Palm against gasoil
Mandates set the floor for biodiesel demand; the price gap between palm oil and diesel decides how costly the mandate is and whether any blending happens beyond it. Indonesia funds the gap from its palm oil export levy, so a wide gap strains the fund. The Veg Oil & Energy Monitor tracks this palm-oil-gasoil (POGO) spread daily, and the Palm Oil Monitor charts palm against crude.
Sources and method
Indonesia allocation and B50 timing: Petromindo, 24 Dec 2025; Hydrocarbon Processing, 23 Dec 2025. Malaysia: BioEnergy Times, 24 Apr 2026. Indonesian output: GAPKI 2025 CPO + PKO, 56.6 million t. Malaysian exports: MPOB, latest month.
Palm oil absorbed = diesel pool × blend × tonnes of oil per kL. This ignores other feedstocks, stocks of biodiesel and changes in diesel demand, so treat it as a rough guide. Policy facts are updated by hand. Not financial advice.