President-elect Prabowo Subianto of Indonesia aims to implement a mandatory 50 percent palm oil-based biodiesel blend (B50) by early next year, which he projects will reduce fuel imports by $20 billion annually.

Currently, Indonesia plans to increase the biodiesel blend to 40 percent (B40) in January 2025 from the existing 35 percent, as part of efforts to cut fuel imports and decrease emissions from fossil fuels.

Prabowo, who will assume office in October from the current president Joko Widodo, has directed the palm oil industry to prepare for the B50 blend. Testing for the higher blend is already underway. Prabowo stated on Saturday, "We are at B35 now and we will accelerate to B40, B50. With B50, once we reach it by the end of this year or early next year, we will save $20 billion annually and avoid sending this money overseas."

The announcement caused a surge in Malaysia's benchmark palm oil futures, reaching a one-month high before settling at 3,921 ringgit ($902.42) per metric ton, a 1.4 percent increase.

However, Indonesia's largest palm oil producers association, GAPKI, has expressed skepticism about the feasibility of B50 implementation by early 2025, citing insufficient testing. The Indonesia Biofuel Producer Association (APROBI) also indicated that producers need more time to test B50 and scale up production to meet demand. GAPKI, the Indonesian Palm Oil Association, was founded on February 27, 1981. The creation of the organization was prompted by Indonesian palm oil industry players' desire to come together as a unified group in response to the growing number of players in the country.