In one of the world’s most aggressive biofuel pushes, Indonesia has announced B60 for implementation in 2027, even before fully achieving the mandatory B50 target rolled out in July 2026.

B50 is conventional mineral diesel blended with 50% vegetable oil-based biodiesel. Indonesia uses palm oil-derived fatty acid methyl ester (FAME) for blending. The plan simply builds on the country’s earlier launch of the B30, B35, and B40 programmes.

Impact On Global Vegetable Oil Trade

Indonesia’s growing biodiesel programme is part of efforts to reduce carbon emissions, advance national energy security, and eliminate diesel imports. While it is the country’s sovereign right to mandate such blending, this policy may have a ripple effect on the global vegetable trade, in general, and on India, in particular, because of its possible impact on the established supply chain.

Indonesia and Malaysia dominate the global palm oil market. Of the world’s annual production of roughly 81.5 million metric tonnes (MMT) of palm oil, Indonesia accounts for nearly 60% (around 47.5 MMT), followed at a distance by Malaysia (about 19.5 MMT).

More important than production are their exports. Indonesia exports almost 50% (close to 24 MMT) of its production, and Malaysia........

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