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<br>[Biodiesel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) allocation decree was waited for by industry<br> |
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<br>[Indonesia](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) had prepared to launch higher biodiesel mix on Jan. 1<br> |
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<br>Palm oil standard contract increased 1% after previous fall<br> |
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<br>Government goes 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 Nangoy<br> |
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<br>JAKARTA, Jan 3 (Reuters) - Indonesia Energy and Mineral Resources Minister signed a decree on Friday designating 15.6 million kilolitres (KL) of [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) for 2025 circulation, while offering the market until [completion](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) of next month to adapt to the higher level of the fuel in the mix.<br> |
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<br>Indonesia, the world's biggest exporter of palm oil, had planned to launch the of 40% palm oil fuel in [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb) on Jan. 1, up from 35% now.<br> |
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<br>"The ministerial guideline has been signed," the minister Bahlil [Lahadalia informed](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) press reporters, adding the [federal government](https://pitchbook.com/profiles/company/51278-86) was working to [increase](https://www.google.com/search?kgmid=/m/0cqd_rb) the [obligatory biodiesel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) mix to 50% next year.<br> |
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<br>Eniya Listiani Dewi, a ministry senior official, said biodiesel manufacturers and [fuel merchants](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) will be provided until Feb. 28 to adjust to the B40 mix. She stated the hold-up was since of technical obstacles linked to aids for the fuel.<br> |
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<br>The non-implementation on Jan. 1. had actually led to 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 sellers and biodiesel manufacturers had actually said they were not able to [prepare agreements](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) for [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) circulation without the decree.<br> |
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<br>The biodiesel allocation for 2025 indicated an increase from 2024['s approximated](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) biodiesel consumption of 12.98 KL, ministry information showed on Friday.<br> |
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<br>Of the total allocation for this year, 7.55 million KL is for the public service obligation (PSO), which [covers sectors](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) such as mass transit, whose sales will be [subsidised](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) by the nation's palm oil fund.<br> |
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<br>"The remaining allocations will be sold at market cost. The non-PSO allocation is set at 8.07 million KL," Bahlil said, including the fund might not subsidise the [cost gap](https://www.pinterest.com.au/missionnewenergy/) in between the palm oil and nonrenewable fuel sources for the general allotment.<br> |
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<br>BPDPKS, the agency in charge of gathering and [handling](https://pitchbook.com/profiles/company/51278-86) the [palm oil](https://www.google.com/search?kgmid=/m/0cqd_rb) funds, estimated in November B40 would need a 68% [subsidy increase](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048).<br> |
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<br>To help fund that, Indonesia prepares to increase its export levy for [unrefined palm](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) oil (CPO) to 10% from the current 7.5%, however for that to take place, another main guideline is needed. (Reporting by Bernadette Christina Munthe, [Fransiska](https://stocktwits.com/symbol/MNEL) Nangoy, Dewi Kurniawati |
