PALMOILMAGAZINE, BOGOR – The government aims to achieve a 40 percent biodiesel blend (B40) this year, but challenges remain in meeting this target.
Dwi Sutoro, Director of Marketing at PT Perkebunan Nusantara (PTPN) III (Persero), highlighted that addressing key issues is crucial to supporting the government’s goal. One major concern is boosting production in the palm oil upstream sector.
“Achieving the central government’s biodiesel targets, whether B40 or B50, requires increased production in the upstream sector,” Dwi said during a meeting with Palmoilmagazine.com in Sentul, Bogor Regency, on Saturday, July 20, 2024.
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He also noted that, aside from boosting upstream production, the government’s efforts in technology and human resources are positive indicators. With these factors in place, he believes the biodiesel targets are attainable.
If the upstream sector slowly gets increasing production, Dwi continued, crude palm oil (CPO) application, if for biodiesel, would have something to do with the supply chain both in exports and needs in this country. That is why the increasing production in the upstream would be very crucial.
The issue is that it would not be easy to increase fresh fruit bunch production as the material for CPO. On the other hand, the government reinforced its commitment to implement palm oil moratorium through President’s Instruction Number 8 / 2018 that would last until September 2024 – the government stops to publish new planting permits for palm oil industries.
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It means, the government should be wiser to publish another strategic policy(ies). Everything should be conducted to realize biodiesel program without harming environmental conservation.
Data audit published by Palm Oil Plantation Fund Management Agency, pam oil plantations in Indonesia laid on about 16,8 million hectares. From the numbers, Indonesia could produce 50,07 million tons of CPO in 2023. In fact, CPO production target should be at 100 million tons in 2040. (P4)
