Core Viewpoint - Indonesia's Ministry of Energy and Mineral Resources has signed a decree allocating a quota of 15.65 million kiloliters of palm-based biodiesel for the mandatory blending program in 2026, slightly higher than the 15.6 million kiloliters for 2025 [1] Group 1: Biodiesel Quota and Usage - The allocation includes approximately 7.45 million kiloliters for public services, such as public transportation, which are subsidized by the government [1] - The remaining 8.2 million kiloliters will be sold at market prices to the non-public service market [1] Group 2: Strategic Goals and Implementation - This initiative is part of Indonesia's strategy to reduce dependence on fossil fuel imports [1] - The current mandatory blending ratio for diesel is 40% (B40), with plans to increase it to 50% (B50) starting next year [1] - Road tests for B50 have commenced in early December and are expected to last about six months [1] - The Energy Minister indicated that mandatory B50 usage is likely to be implemented in the second half of 2026 [1] Group 3: Industry Impact and Supply Considerations - Industry groups estimate that the implementation of the B50 plan may require up to 19 million kiloliters of palm oil fuel annually [1] - To ensure sufficient domestic raw material supply for biodiesel production, Indonesia, as the world's largest palm oil producer, may regulate crude palm oil exports in the future [1] - Despite an increase in production, Indonesia's palm oil inventory decreased by 10% as of the end of October, while domestic consumption rose by 8.5% due to increased demand for biodiesel and food [1]