Indonesian Parliament Welcomes B40 Policy, Highlights Infrastructure Readiness and Social Impact

Palm Oil Magazine
Indonesian Parliament Welcomes B40 Policy, Highlights Infrastructure Readiness and Social Impact. Photo by: Ministry of Energy and Mineral Resources

PALMOILMAGAZINE, JAKARTA — Jalal Abdul Nasir, a member of the Indonesian Parliament’s Commission XII, has expressed his support for the planned implementation of the B40 biodiesel policy starting in January 2025. However, the politician, commonly known as Haji Jalal, also emphasized several challenges, including infrastructure readiness, vehicle technology, and potential social and environmental impacts of the policy.

“This is a positive step to reduce carbon emissions, but the government must ensure the readiness of distribution systems and vehicle technology to ensure smooth implementation,” Jalal stated in a written statement quoted by Palmoilmagazine.com on Tuesday (14/1/2025).

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Jalal, a politician from the PKS (Prosperous Justice Party) faction, pointed out that many vehicles in Indonesia are not yet designed to use fuel with high bio-content like B40. He urged the Ministry of Energy and Mineral Resources (ESDM) to prioritize comprehensive testing before this policy is widely implemented. “Vehicles that are not compatible may suffer engine damage, and this must be addressed early on,” he added.

Also Read: Indonesia Optimistic to Reach 100 Million Tons of Palm Oil, Supporting B40 Biodiesel

On the environmental front, Jalal highlighted the potential expansion of palm oil plantations that could harm forests. “In 2021, Greenpeace reported that 3 million hectares of forest were lost due to palm oil plantations. This policy could worsen the situation if not closely monitored,” Jalal warned. He also emphasized the importance of enforcing sustainability certifications for palm oil producers to ensure that plantation expansions do not damage the environment.

From an economic perspective, Jalal urged the government to ensure fair palm oil prices for small-scale farmers. “Many small-scale palm oil farmers have yet to enjoy fair prices. The government must create distribution mechanisms that ensure benefits are also felt by small farmers,” he said. As a solution, Jalal proposed the development of digital-based distribution infrastructure using IoT (Internet of Things) technology. According to him, this technology can monitor biodiesel distribution in real time, prevent misuse, and expedite delivery to remote areas.

Also Read: Indonesia’s Trade Minister Highlights CPO Demand for B40 Biodiesel Mandate Implementation

The B40 policy, outlined in Ministerial Decree No. 341 of 2024 from the Ministry of Energy and Mineral Resources, is expected to increase the biodiesel quota to 15.6 million kiloliters by 2025. The program aims to reduce carbon emissions and cut diesel imports, but its success will require strict oversight and collaboration among various stakeholders.

With its potential benefits and challenges, Jalal Abdul Nasir hopes the government ensures that the B40 policy becomes a sustainable solution that not only supports the environment but also improves the welfare of small-scale farmers. (P2)

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