Indonesia’s B50 Pivot Shows War Is Stoking Global Biofuel Demand

Indonesia’s abrupt pivot to expand its biodiesel mandate is the latest sign of how the war in Iran is reshaping energy policy, tightening global vegetable oil supplies as more gets funneled into fuel.

The world’s top palm oil producer will implement its B50 program — an ambitious target to boost the level of biodiesel blended in its fuel to 50% — starting from July 1, Airlangga Hartarto, coordinating minister for economic affairs announced late Tuesday. The move is part of efforts to mitigate energy supply disruptions wrought by the conflict, with Airlangga saying it could reduce fossil fuel consumption by 4 million kiloliters annually.