Indonesia has expanded its subsidized palm-based biodiesel program, increasing the palm oil content in the fuel blend to mitigate the impact of rising global oil prices.
The move aims to reduce the country's dependence on energy imports by leveraging its domestic palm oil production capacity.
Motorists are adapting to the change, with many modifying their vehicles to accommodate the higher biodiesel mix.
The policy shift reinforces structural demand for palm oil, a key input for the biodiesel blend.
Malaysian palm oil futures have extended their winning streak, buoyed by robust export figures and renewed policy support from Indonesia.
The rally reflects sustained demand across the edible oil and biofuel sectors, with traders pricing in the long-term implications of Jakarta's energy strategy.