Last week, Indonesia’s Deputy at Coordinating Ministry Septian Hario Seto said the country is considering a plan to raise its biodiesel mandate to help lower fuel import costs and absorb overflowing palm oil stockpiles. Its government plans to raise the biodiesel mandate to 35% from 30%.
The planned higher biodiesel mandate in Indonesia will be medium-term positive for Indonesian biodiesel producers such as Wilmar International, Golden Agri-Resources and First Resources, said CGS-CIMB Research analysts Ivy Ng Lee Fang and Nagulan Ravi.
This change in mandate would allow the companies to expand their revenues and earnings base, the analysts said in their June 30 report. However, the earnings impact is not expected to be significant.
