Biodiesel mandate is still the main growth driver of consumption in 2024 and 2025, says Hoe. GAPKI projects biodiesel consumption of 11.6 million tonnes in 2024 and 14.01 million tonnes in 2025, based on the B35/B40 mandate for 2024-2025.
RHB Bank Singapore analyst Hoe Lee Leng is maintaining her “overweight” call on the plantation sector with Bumitama Agri (SGX:P8Z
) as one of her top picks following a meeting with the Indonesian Palm Oil Association (GAPKI).
In her Dec 19 note, Hoe says the B40 biodiesel mandate is likely to stick. RHB believes the Indonesian government will do what it takes to ensure the B40 mandate is implemented in 2025, although there could be changes to the policies made along the way.
