Q2 2024 fatty acids and alcohols outlook
This exclusive update delivers a concise overview of the fatty acids and alcohols markets, sharing insight into:
- Palm and lauric oil prices, analysis and outlook
- Glycerine quarterly contracts, supply & demand discussion and trade flow analysis
- Fatty alcohols quarterly outlook trends and in depth trade analysis
- Fatty acids price outlook, trade data and feedstock analysis
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Indonesia to route key commodity exports via state firm
Indonesia to route key commodity exports via state firm
Singapore, 20 May (Argus) — Indonesian president Prabowo Subianto today announced that the government will require exports of key commodities to be routed through a state-appointed company, in a move that could tighten state control over flows as authorities grapple with fiscal pressures and a weakening currency. The policy will initially target palm oil, coal and ferrous alloys, Prabowo said in a parliament session on 20 May. The market awaits details of the policy, but under the broad plan, export sales would be channelled through a state-owned enterprise (BUMN), which would act as the sole counterparty to overseas buyers. Prabowo said a state-owned enterprise will act as a "marketing facility" which helps the state strengthen monitoring of export transactions and fight against under-reporting the value of exports in the country. The move is also to ensure that exporters do not "run away" from requirements to keep export proceeds in the country for at least one year, he said. Exporters of national resources, except for oil and gas, are required to place 100pc of the foreign currency proceeds into a special deposit account of a national bank for at least 12 months, according to a government regulation imposed in March 2025. Indonesia has lost about $908bn over 1991-2024 because of export under-invoicing, Prabowo said. "This will optimise our tax revenues and government proceeds from sales of key commodities and our natural resources," said Prabowo. "We don't want our exports to be the cheapest because we don't dare to control our own resources." The shift signals a move towards centralised trade management that could help the state capture more foreign exchange earnings and improve revenue collection. But it also risks disrupting established supply chains and complicating trade flows with international buyers. The benchmark Jakarta Composite Index, representing 913 companies spanning from sectors including commodities and energy, extended losses because of the announcement, dropping by as much as 2.4pc before trimming some intra-day losses. The index is down by 27pc from the start of the year. The phased roll-out of the scheme will begin in June and last through August, when exporters will have to gradually shift contracts, transactions and payment flows to BUMN or state-owned enterprises (SOEs), while still handling parts of the export process. The aim of the phased roll-out is to ensure that SOEs gradually take over the international sales of the commodities. The system is set to move to full implementation from September, with the SOEs assuming end-to-end control of transactions. This could include contract negotiation, documentation, shipping co-ordination and receipt of export proceeds, effectively positioning state firms as the primary interface between Indonesian producers and global markets. The Indonesian coal mining association (APBI) did not immediately respond to a request for comment. By Saurabh Chaturvedi and Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Malaysia to raise biodiesel blend target to 15pc
Malaysia to raise biodiesel blend target to 15pc
Singapore, 17 April (Argus) — Malaysia will raise its biodiesel-fossil diesel blending target up to 15pc (B15) from the current B10, the country's economic affairs minister Akmal Nasir said this week. The country will first start with a B12 blend, which will use existing blending infrastructure without requiring additional investments, Nasir said. Malaysia's biodiesel production capacity for 2025 stands at 2.36mn t, while actual production for the year was less than half at 975,200t, he said. No timeline was laid out for a move towards the higher B15 blending target. The higher B12 blend ratio should start next month, a biodiesel producer said, adding that they were awaiting further details from blenders. Another already received a request to deliver higher volumes of biodiesel. Nasir visited PS Pipeline — a joint venture between Petronas Dagangan Berhad and Shell Malaysia Trading — at the Klang Valley Distribution Terminal earlier this week to ascertain the infrastructure's capability to store and distribute biodiesel blends. The government will also hold meetings with the oil industry technical committee to ensure implementation runs smoothly, Nasir said. Malaysia previously highlighted plans to upgrade depots in phases to supply biodiesel blends up to B20-30, under the 13th Malaysia plan released in July 2025, along with preparations for a B30 mandate for the commercial and public transport sectors. The Malaysian Biodiesel Association earlier this month urged the government to speed up rolling out higher biodiesel blends to strengthen energy security, in light of supply disruptions and price volatility for conventional fuels due to the ongoing war in the Middle East. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Malaysian biodiesel group urges faster B20 rollout
Malaysian biodiesel group urges faster B20 rollout
Singapore, 7 April (Argus) — The Malaysian Biodiesel Association (MBA) has urged the government to speed up the nationwide rollout of biodiesel-fossil diesel blends of up to 20pc (B20) to strengthen energy security, it said today. The MBA called for immediate implementation of higher blending levels between B10 and B20 in areas where infrastructure can support it. It acknowledged that progress towards higher blends has been limited by infrastructure readiness but sought further government support to enable a nationwide B30 blend. To encourage biodiesel use outside the national blending programme, the MBA also asked the government to exempt a 10pc sales tax on biodiesel. The national biodiesel programme, combined with voluntary biodiesel use, would enhance energy security, cut greenhouse gas emissions, generate foreign exchange savings, reduce exposure to global oil price shocks and improve fiscal resilience while supporting domestic palm oil and rural livelihoods, the MBA said. Malaysia launched the B20 biodiesel programme for the transport sector in February 2020, but implementation has been limited to Langkawi, Kedah, Labuan and Sarawak. B7 remains the applied blend in the industrial sector without a nationwide rollout, the MBA said. Neighbouring countries have also announced or are considering higher biodiesel blending levels because of energy security concerns due to the war in the Middle East. Indonesia last week announced it will implement a B50 blending mandate from 1 July while Thailand adjusted the biodiesel content from B5 to B7 in March and has announced restrictions on crude palm oil exports from 7 April . By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indonesia targets 50pc biodiesel blend in 2026
Indonesia targets 50pc biodiesel blend in 2026
Singapore, 30 March (Argus) — Indonesia will increase its biodiesel-fossil gasoil blend to 50pc (B50) this year, president Prabowo Subianto said during a state visit to Japan today. The development follows months of backtracking on the country's plans for its biodiesel mandate. The president in January gave a directive that Indonesia would maintain a B40 target for 2026 because of high costs of funding the mandate due to wide palm oil-gasoil (Pogo) spreads above $350/t. At the same time, the government raised palm product export levies by 2.5pc from March to fund biodiesel production. Ministry of energy and mineral resources director general Eniya Listiani Dewi said in late 2025 that B50 could be implemented by the second half of 2026 , subject to B50 road test results and other logistical bottlenecks. The government has likely revived interest in increasing to a B50 blending target because of the war in the Middle East, which has significantly narrowed the Pogo spread and disrupted oil supplies to Indonesia. The front-month Pogo spread between Bursa Malaysia crude palm oil (CPO) futures and Ice gasoil futures hit a 41-month low of a $292/t discount at 16:30 Singapore time (08:30 GMT) today. The B50 announcement also drove third-month CPO futures to a 15-month high of 4,778 ringgit/t ($1,186/t) at the same timestamp. Indonesia is also eager to further reduce its gasoil import dependence in the current volatile market. Indonesian plantation fund management agency BPDP funds the price gap between biodiesel and fossil gasoil using revenue from export levies on palm oil and related products. It delivers the funds to biodiesel producers under the public service obligation sector after they supply biodiesel to fuel distribution companies at the cost of regular gasoil. Fuel distributors then supply blended biodiesel and gasoil to consumers. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.