Indonesia’s plan to introduce B50 biodiesel, a blend containing 50% fatty acid methyl ester (FAME) derived from vegetable oils — has stirred major concern across the palm oil industry. The move, seen as a direct response to the European Union Deforestation Regulation (EUDR), could, according to critics, push palm oil out of the global market altogether, reports Rancakmedia.com.
Mohamad Helmy Othman Basha, Chairman of the Malaysian Palm Oil Board (MPOB), warned that Indonesia’s policy, though aimed at promoting domestic use, risks accelerating the global phase-out of palm oil. “The constant negativity towards palm oil has led some markets to reject it,” he said at the RSPO Annual Roundtable Conference on Sustainable Palm Oil (RT2025) on Tuesday. “Palm oil opponents may soon get their wish — the world is already witnessing its gradual disappearance from the global market.”
As the world’s largest producer and exporter of palm oil, Indonesia’s actions carry significant weight. Neighboring Malaysia, the second-largest producer, is also advancing towards a B30 biodiesel mandate, signaling a regional trend of prioritizing domestic consumption over exports.
In his additional role as Group CEO of Sime Darby Plantation, Helmy cautioned that continued regulatory restrictions and global bias could create a severe shortage of this essential commodity. “The world could lose access to the most efficient, productive, and sustainable vegetable oil,” he said.
Helmy also disputed claims linking palm oil production to deforestation. Citing data from the World Resources Institute and Global Forest Watch, he noted that primary forest loss in Indonesia and Malaysia has fallen sharply over the past decade and that both nations still retain more than 50% forest cover, a figure higher than that of many developed nations.
Despite this progress, the EUDR designates both countries as “standard risk” for deforestation, while others with significantly less forest cover are labeled “low risk.” Calling this classification “unfair,” Helmy said applying a single benchmark for land-use change across diverse economies amounts to “economic apartheid.”
He argued that developing countries must be allowed to responsibly utilize their natural resources, or developed nations should financially compensate them for maintaining critical ecosystems.
Helmy also drew attention to what he described as double standards in the global climate debate. While palm oil faces intense scrutiny, he said fossil fuel producers, whose emissions contribute most to global warming — often avoid similar criticism. He cited Norway, which has long benefited from oil revenues, and the Netherlands, a major agricultural nation with more livestock than people, as examples of this imbalance.
Helmy’s remarks have reignited debate over the balance between environmental regulation and economic fairness — and whether stricter Western policies could ultimately reshape the global edible oil and biofuel markets.
