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<br>Biodiesel allocation decree was waited for by industry<br> |
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<br>Indonesia had prepared to launch greater on Jan. 1<br> |
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<br>Palm oil [standard](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) contract increased 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](https://pitchbook.com/profiles/company/51278-86) remark)<br> |
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<br>By Bernadette Christina and [Fransiska](https://www.google.com/search?kgmid=/m/0cqd_rb) Nangoy<br> |
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<br>JAKARTA, Jan 3 (Reuters) - Indonesia Energy and Mineral Resources [Minister signed](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) a decree on Friday assigning 15.6 million kilolitres (KL) of [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) for 2025 distribution, while [offering](https://forest500.org/rankings/companies/mission-newenergy-limited) the market up until the end of next month to adapt to the greater level of the fuel in the mix.<br> |
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<br>Indonesia, the world's largest exporter of palm oil, had planned to launch the necessary requirement of 40% palm oil fuel in biodiesel on Jan. 1, up from 35% now.<br> |
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<br>"The ministerial regulation has been signed," the minister Bahlil Lahadalia informed reporters, including the federal government was working to increase the [mandatory biodiesel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) mix to 50% next year.<br> |
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<br>Eniya Listiani Dewi, a ministry senior official, said biodiesel manufacturers and fuel merchants will be offered up until Feb. 28 to adjust to the B40 mix. She said the [hold-up](https://forest500.org/rankings/companies/mission-newenergy-limited) was since of technical challenges linked to subsidies for the fuel.<br> |
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<br>The non-implementation on Jan. 1. had resulted in a 2.6% drop in the [Malaysian palm](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) [oil benchmark](https://www.zoominfo.com/c/mission-newenergy/346542889) [agreement](https://stocktwits.com/symbol/MNEL) on Thursday. On Friday, it recuperated by around 1%.<br> |
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<br>Fuel merchants and [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) [manufacturers](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) had actually said they were not able to draw up agreements for biodiesel distribution without the decree.<br> |
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<br>The [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) allocation for 2025 showed an increase from 2024's approximated biodiesel intake of 12.98 KL, ministry data showed on Friday.<br> |
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<br>Of the overall allowance for this year, 7.55 million KL is for the general public service commitment (PSO), which covers sectors such as public transport, whose sales will be subsidised by the country's palm [oil fund](https://www.crunchbase.com/organization/mission-newenergy).<br> |
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<br>"The remaining allocations will be offered at market value. The non-PSO allowance is set at 8.07 million KL," Bahlil stated, adding the fund might not subsidise the [rate gap](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in between the palm oil and nonrenewable fuel [sources](https://forest500.org/rankings/companies/mission-newenergy-limited) for the general allowance.<br> |
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<br>BPDPKS, the agency in charge of collecting and handling the palm oil funds, approximated in November B40 would need a 68% aid increase.<br> |
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<br>To assist fund that, [Indonesia plans](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) to increase its export levy for unrefined palm oil (CPO) to 10% from the existing 7.5%, however for that to happen, another [official guideline](https://www.bloomberg.com/profile/company/MNELF:US) is needed. (Reporting by Bernadette Christina Munthe, Fransiska Nangoy, Dewi Kurniawati |
