PALMOILMAGAZINE, JAKARTA – The Association of Indonesian Micro, Small, and Medium Palm Oil Mills (GAPPKES MIKEMINDO) has officially declared full support for the government’s Biodiesel 40% (B40) mandate, aimed at promoting national energy self-sufficiency.
B40 refers to a biofuel blend composed of 40% Fatty Acid Methyl Esters (FAME) derived from palm oil and 60% fossil diesel fuel, as stipulated in the Energy and Mineral Resources Ministerial Decree No. 341.K/EK.01/MEM.E/2024.
Salim Simangunsong, Chairman of GAPPKES MIKEMINDO, stated that this initiative aligns with the national energy resilience agenda and Indonesia’s commitment to achieving net-zero emissions by 2060, as envisioned by President Prabowo Subianto.
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“This program is a noble initiative that should be supported by all citizens, especially those in the palm oil industry, as it has far-reaching impacts such as saving foreign exchange, generating significant employment, and reducing greenhouse gas emissions,” Salim said in an official statement to Palmoilmagazine.com on Sunday (19/1/2025).
Salim also emphasized the importance of involving Mini Palm Oil Mills (PKS Mini) in supplying raw materials such as High Acid Crude Palm Oil (HACPO) and High Free Fatty Acid (FFA) CPO to biodiesel plants. “We are ready to supply FAME and biocatalysts using our existing technology, even on a small scale,” he added.
Meanwhile, GAPPKES MIKEMINDO Secretary-General Arie Wijaya explained that Indonesia has around 527 Mini Palm Oil Mills, categorized into three groups based on production capacity. However, he expressed concern over the challenges faced by Mini Mills due to larger mills shifting to process loose fruit (brondolan).
“We urge the government to regulate large mills that have entirely shifted to processing loose fruit, as this could disrupt the palm oil industry and threaten the sustainability of Mini Mills,” Arie said.
Salim concluded by stressing that Mini Mills under GAPPKES MIKEMINDO are not competitors but a solution to improve the welfare of Indonesian palm oil farmers. “Let us collaborate to advance palm oil as a sustainable and strategic national commodity,” he stated.
With GAPPKES MIKEMINDO’s support, the implementation of the B40 mandate is expected to proceed smoothly, benefiting both the national energy sector and the Indonesian economy. (P2)