Indonesia, the world’s biggest palm oil supplier, should frame a policy to boost domestic consumption in biofuels to bolster prices, the president said.
“I’ve spoken with the agriculture minister and next month we can start quickly to formulate a policy,” Susilo Bambang Yudhoyono said in Bandung, Indonesia. Higher biodiesel output “will provide an incentive” for prices, he said.
Palm, used in everything from noodles to biofuels, entered a bull market this month and is heading for the first annual gain in three years on concern that production in Indonesia will trail analyst forecasts. Supply will expand next year, according to the Indonesian Palm Oil Association in Jakarta, which expects 3 million metric tons of the oil will be used by the country to produce biodiesel each year.