PALMOILMAGAZINE, BOGOR – The Executive Director of the Indonesian Vegetable Oil Industry Association (GIMNI), Sahat Sinaga, has raised concerns over the government’s unclear strategy in developing palm-based aviation fuel (avtur). Speaking at the Palm Oil Downstream Industry Journalist Workshop, attended by Palmoilmagazine.com in Bogor on Saturday (22/2/2025), Sinaga emphasized that the development of palm-based aviation fuel requires clear technological commitment and raw material allocation.
He pointed out that Indonesia already has the technological capability to produce avtur through two processes: Hydrotreated Vegetable Oil (HVO) and polymerization. However, implementation remains slow. “For instance, we want to build an aviation fuel industry, but the raw material supply is uncertain. Palm oil can be a solution, but the government still lacks a concrete roadmap,” he stated.
Sinaga criticized the heavy reliance on global oil prices. “If crude oil is priced at $40 per barrel, why should we push palm oil for aviation fuel? This must be economically viable. We cannot afford to be stuck in a cycle of trial and error,” he asserted.
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Concerns Over Palm Oil Plantation Expansion
Sinaga also questioned the policy on palm plantation expansion. Of the 2.1 million hectares proposed for plantation development, he argued that 650,000 hectares should be allocated to small farmers through the Plantation Management Agency (BPP) rather than corporations. “Private companies often expand their land uncontrollably, while small farmers struggle to gain access. This leads to conflicts, such as land encroachment in Central Kalimantan,” he explained.
Data from the Indonesian Palm Oil Council (DMSI) showed that palm oil productivity declined from 50 million tons in 2023 to 48.7 million tons in 2024. “This 4% decrease is due to poor land management and uncontrolled forest conversion,” he added.
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As an alternative, Sinaga proposed diversifying oil-producing crops beyond palm oil, such as nyamplung (Calophyllum inophyllum), which thrives in arid regions. “Pertamina should be allocated 1.3 million hectares of land to cultivate this plant. Palm oil is not the only energy solution,” he emphasized.
He also urged the government to finalize forest boundary regulations as outlined in Law No. 41/1999 and Presidential Regulation No. 5/2020. “Conversion forests must have clear boundaries. Small farmers should not be accused of encroaching on forests when the borders are not properly defined,” he stressed.
Call for Countervailing Power
Sinaga highlighted the need to establish countervailing power to balance corporate dominance. “If Pertamina or other state-owned enterprises (SOEs) have their own plantations, they can stabilize prices and supply. The market must not be controlled by a handful of players,” he said.
In conclusion, he urged the new administration to focus on pro-environment and pro-farmer policies. “The future of Indonesia’s palm oil industry depends on our ability to break free from business as usual. We cannot allow aviation fuel and biodiesel to remain mere slogans while small farmers continue to suffer,” he warned.
With these pressing challenges, the public eagerly awaits concrete government action to optimize palm oil’s potential while ensuring ecological sustainability and social justice. (P2)
