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<br>Biodiesel allocation decree was waited for by market<br> |
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<br>Indonesia had [prepared](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) to introduce greater biodiesel mix on Jan. 1<br> |
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<br>Palm oil rose 1% after previous fall<br> |
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<br>Government intends for 50% biodiesel mix in 2026<br> |
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<br>(Recasts with energy minister's comment)<br> |
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<br>By Bernadette Christina and [Fransiska](https://pitchbook.com/profiles/company/51278-86) Nangoy<br> |
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<br>JAKARTA, Jan 3 (Reuters) - Indonesia Energy and Mineral Resources [Minister](https://www.bloomberg.com/profile/company/MNELF:US) signed a decree on Friday designating 15.6 million kilolitres (KL) of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) for 2025 distribution, while providing the industry up until the end of next month to adjust to the greater level of the fuel in the mix.<br> |
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<br>Indonesia, the world's biggest [exporter](https://pitchbook.com/profiles/company/51278-86) of palm oil, had actually prepared to release the compulsory requirement of 40% palm oil fuel in [biodiesel](https://www.pinterest.com.au/missionnewenergy/) on Jan. 1, up from 35% now.<br> |
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<br>"The ministerial policy has actually been signed," the minister Bahlil [Lahadalia](https://www.businessnews.com.au/Company/Mission-NewEnergy) [informed press](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) reporters, adding the government was working to [increase](https://pitchbook.com/profiles/company/51278-86) the necessary [biodiesel](https://www.pinterest.com.au/missionnewenergy/) mix to 50% next year.<br> |
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<br>[Eniya Listiani](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) Dewi, a [ministry](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) senior authorities, stated [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) producers and fuel sellers will be offered till Feb. 28 to adjust to the B40 mix. She stated the hold-up was due to the fact that of technical obstacles linked to subsidies for the fuel.<br> |
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<br>The non-implementation on Jan. 1. had actually caused a 2.6% drop in the Malaysian palm oil benchmark contract on Thursday. On Friday, it recovered by around 1%.<br> |
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<br>Fuel merchants and [biodiesel manufacturers](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) had stated they were not able to draw up contracts for biodiesel distribution without the decree.<br> |
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<br>The biodiesel allotment for 2025 indicated an increase from 2024's approximated biodiesel consumption of 12.98 KL, [ministry](https://www.businessnews.com.au/Company/Mission-NewEnergy) information showed on Friday.<br> |
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<br>Of the overall allowance for this year, 7.55 million KL is for the public service responsibility (PSO), which covers sectors such as mass transit, whose sales will be subsidised by the country's palm [oil fund](https://www.zoominfo.com/c/mission-newenergy/346542889).<br> |
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<br>"The staying allocations will be sold at market price. The non-PSO allotment is set at 8.07 million KL," Bahlil stated, adding the fund might not subsidise the price space between the palm oil and [fossil fuels](https://www.bloomberg.com/profile/company/MNELF:US) for the total allowance.<br> |
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<br>BPDPKS, the company in charge of gathering and managing the palm oil funds, approximated in November B40 would need a 68% [subsidy boost](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608).<br> |
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<br>To help fund that, [Indonesia plans](https://www.bloomberg.com/profile/company/MNELF:US) to increase its export levy for unrefined palm oil (CPO) to 10% from the current 7.5%, but for that to take place, another main regulation is needed. (Reporting by Bernadette Christina Munthe, [Fransiska](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) Nangoy, Dewi Kurniawati |
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