Amid Stagnant Palm Oil Production, Govt Measures Impact of Mandatory Biodiesel B-40

Entrepreneurs estimate that raising the vegetable oil blend to 40 percent will push the demand for crude palm oil (CPO) up to 14 million tons. This shift is expected to impact the availability of palm oil for both local consumption and export markets.

Dwi Rachmawati

7 Jun 2024 - 14.42
A-
A+
Amid Stagnant Palm Oil Production, Govt Measures Impact of Mandatory Biodiesel B-40

Workers arrange oil palm during harvest in the Kemang area, Bogor Regency, Sunday (30/8/2020). The Research and Development Agency of the Ministry of Energy and Mineral Resources has started a feasibility study on the use of pure vegetable oil (crude palm oil/CPO) for diesel power plants (PLTD) until December 2020. Bisnis/Arief Hermawan P

Bisnis, JAKARTA - The government has announced that the mandatory B40 biodiesel program will commence in 2025. This initiative to increase vegetable oil development is being undertaken despite a stagnation in domestic palm oil production.

Currently, the government mandates biodiesel containing 35% vegetable oil, known as B35, which requires up to 12 million tons of crude palm oil (CPO). Entrepreneurs predict that raising the vegetable oil blend to 40% will push the demand for CPO to 14 million tons, potentially impacting the availability of palm oil for both local consumption and export markets.

Additionally, the government's initiative comes amid a year-on-year (YoY) slowdown in palm oil production, complicating the implementation of this plan. This situation raises concerns that Indonesia might become a CPO importer due to the biodiesel development.

General Chair of the Indonesian Palm Oil Farmers Association (Apkasindo) Gulat Manurung highlighted that the productivity of independent smallholders' palm oil remains significantly below normal levels, averaging only around 300 - 400 kilograms of fresh fruit bunches (FFB) per hectare per month.

Cek Berita dan Artikel yang lain di Google News dan WA Channel
Editor: Asteria Desi Kartikasari
Jelajahi peluang bisnis terpercaya dengan berlangganan
Temukan keleluasaan dan keuntungan maksimal dengan pilihan paket berlangganan eksklusif ini
BERLANGGANAN SEKARANG
Tidak Memerlukan Komitmen, Batalkan Kapan Saja
Penawaran terbatas. Ini adalah penawaran untuk Langganan Akses Digital Dasar. Metode pembayaran Anda secara otomatis akan ditagih di muka setiap empat minggu. Anda akan dikenai tarif penawaran perkenalan setiap empat minggu untuk periode perkenalan selama satu tahun, dan setelah itu akan dikenakan tarif standar setiap empat minggu hingga Anda membatalkan. Semua langganan diperpanjang secara otomatis. Anda bisa membatalkannya kapan saja. Pembatalan mulai berlaku pada awal siklus penagihan Anda berikutnya. Langganan Akses Digital Dasar tidak termasuk edisi. Pembatasan dan pajak lain mungkin berlaku. Penawaran dan harga dapat berubah tanpa pemberitahuan.
BIG MEDIA
Jalan K.H. Mas Mansyur No. 12AKaret Tengsin - Jakarta Pusat 10220
© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.
BIG MEDIA
Jalan K.H. Mas Mansyur No. 12AKaret Tengsin - Jakarta Pusat 10220
© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.