Indonesia’s ambitious plan to mandate the use of B50 biodiesel, a fuel blend incorporating 50 percent fatty acid methyl ester (FAME) derived from vegetable oils, has ignited significant concern across the industry. Mohamad Helmy Othman Basha, Chairman of the Malaysian Palm Oil Board (MPOB), contends that this policy, largely a direct response to the European Union Deforestation Regulation (EUDR), risks the eventual elimination of palm oil from the global market.
As the world’s leading producer and exporter of palm oil, Indonesia’s move is particularly impactful. Its regional counterpart, Malaysia, which stands as the second-largest producer, is also progressing towards a B30 biodiesel mandate, signaling a broader regional shift towards greater domestic utilization of palm oil.
Helmy highlighted that the drive towards higher biodiesel mandates is a direct consequence of policies, such as the EUDR, which are increasingly tightening the trade of such products. He warns that these restrictive measures could ultimately expunge palm oil from the global supply chain altogether. “The incessant negativity towards palm oil has led some markets to reject it,” Helmy stated during the RSPO Annual Roundtable Conference on Sustainable Palm Oil (RT2025) on Tuesday (4/11). “And so, palm oil opponents may soon get their wish — the world is already witnessing the gradual disappearance of palm oil from the global market.”
In his dual capacity as Group CEO of Sime Darby Plantation – a major Malaysian palm oil company – Helmy further cautioned that persistent bias and increasingly restrictive regulations could trigger a critical global shortage of this vital commodity. He emphasized the potential consequences, stating, “The world could lose access to the most efficient, most productive, and most sustainable vegetable oil.”
Helmy also challenged the prevailing narrative surrounding deforestation, citing data from the World Resources Institute and Global Forest Watch. This data indicates a significant decline in primary forest loss in both Indonesia and Malaysia over the last decade. He pointed out that both nations maintain over 50% forest cover, a figure surpassing that of many affluent countries globally.
Despite these ecological achievements, the EUDR continues to classify Indonesia and Malaysia with a “standard risk” rating. Conversely, other countries with demonstrably lower forest cover are granted “low risk” status. Helmy sharply criticized this disparity, calling the application of a single standard for land-use change “unfair.” He further asserted that imposing stricter standards on developing or poorer nations amounts to “economic apartheid.”
Advocating for global equity, Helmy proposed that there must be fair and ethical solutions that allow developing nations to responsibly utilize their natural resources. Alternatively, he suggested, developed countries should begin compensating these nations for their efforts in maintaining crucial forest ecosystems.
Helmy additionally highlighted a significant double standard in global environmental discourse. He noted that fossil fuel producers, whose emissions are the single largest direct cause of climate change, often escape a comparable level of moral condemnation, despite their far greater and global impact. As examples, he cited Norway, which prospered immensely from oil revenues and remains one of the world’s largest crude oil exporters, and the Netherlands, a major agricultural nation with more livestock than human inhabitants.
Summary
Indonesia’s plan to mandate B50 biodiesel, which incorporates 50 percent palm oil-derived fatty acid methyl ester (FAME), is causing significant industry concern. Mohamad Helmy Othman Basha, Chairman of the Malaysian Palm Oil Board (MPOB), warns that this policy, a response to regulations like the European Union Deforestation Regulation (EUDR), threatens to eliminate palm oil from the global market. He suggests that increased domestic utilization in top producing nations like Indonesia and Malaysia, driven by restrictive measures, could result in a critical global shortage of this vital commodity.
Helmy criticized the EUDR, noting that Indonesia and Malaysia maintain over 50% forest cover and have seen significant declines in primary forest loss, yet are still classified as “standard risk” while other nations with less forest cover are “low risk.” He called this disparity unfair and “economic apartheid,” advocating for equitable solutions for developing nations to use their natural resources or receive compensation for forest preservation. Helmy also highlighted a double standard, pointing out that fossil fuel producers, with a greater impact on climate change, often escape comparable moral condemnation.
