PALMOILMAGAZINE, JAKARTA – As the world’s largest producer of palm oil, Indonesia has achieved remarkable success in this sector. With a total production exceeding 56 million tons and exports surpassing 26.33 million tons, palm oil has emerged as a crucial commodity supporting the national economy.
In 2023, exports of palm oil and its derivatives amounted to US$28.45 billion, constituting 11.6% of total non-oil and gas exports. Moreover, approximately 16.2 million individuals, including smallholders, are directly or indirectly involved in this industry. Palm oil and its derivative products are exported to over 125 countries, catering to global energy, food, and industrial needs.
Recognizing its immense potential, the government is committed to enhancing value addition and developing downstream sectors. This entails not only relying on raw material exports but also focusing on the production of end-products and additional value.
Also Read: Mandatory Biodiesel Policy Saves IDR 122 Trillion and Is a Key Pillar to Zero Emissions
“The government is focusing to encourage palm oil biodiesel mandatory program,” Coordinator Minister in Economy, Airlangga Hartarto said in the coordination meeting about National Action Plan for Sustainable Palm Oil (Rencana Aksi Nasional Kelapa Sawit Berkelanjutan / RAN-KSB), Thursday (28/03/2024).
As in the official statement to Palmoilmagazine.com, biodiesel mandatory program is reaching 35 percent (B35) and it was tested to be B40. The 2023 biodiesel absorption in 2023 reached 12,2 million kiloliters, and massively delivered impacts in crude palm oil absorption in this country.
This emphasized the commitment of the government to maximize palm oil potential in Indonesia, not only to exchange contribution but also as the economic pillar which is sustainable and inclusive for the people of Indonesia. By developing downstream industries and actively using biodiesel, Indonesia would reinforce its position as the leader in sustainable and responsible palm oil industries in the globe. (T2)
