PALMOILMAGAZINE, JAKARTA – Putu Juli Ardika, the General Director of Agro-Industry at the Ministry of Industry, highlighted that the downstream sector programs have specific performance indicators, particularly pertaining to the balance between material and product exports.
By the late of 2007, palm oil downstream products from Indonesia just reached about 54 kinds, but they have been 179 kinds, such as, oleofood and oleochemical products.
In 2015, the export composition of palm oil consisted of 18% crude palm oil (CPO) and 6% crude palm kernel oil (CPKO), both of which serve as raw materials for various industries. The remaining exports comprised 61% refinery products and 15% other products.
“Palm oil downstream products encouraged the implementation of biodiesel mandatory program since 2015. It started from biodiesel (B)15, B20, B30 and in 2023, it is B35. In the future, Indonesia would implement B40, B50 to B100 within fatty acid methyl ester (FAME) biodiesel and green fuel, which are the further level of downstream products for renewable fuel,” Putu said
Also Read : Palm Oil Downstream Program Boosts Smallholders Production
According to data from Fiscal Policy Agency in 2019 and 2020, palm oil industries contributed 3,5 percent to gross domestic product in national scale. Until now palm oil industries from upstream to downstream sectors hired 5,2 million workers and become the living sources for more than 21 million men.
However, by 2022, there was a noticeable decline in material exports, with CPO and CPKO accounting for only 2% and 4% respectively. This decline coincided with a significant increase in downstream export products, notably encompassing 73% refinery products and 21% other products.
In quantitative aspects, palm oil export volume reached 282 million metric tons (MT) within US$ 176,84 billion in total in 2015 – 2022. From the performance, Palm Oil Plantation Fund Management Agency (PFMA) got export citation for about Rp 182 trillion.
The fund was allocated about Rp 152 trillion to realize sustainable palm oil through implementing smallholders’ replanting program, escalating human resources, research and development, escalating infrastructures, and mandatory incentive for biodiesel program. (T2)
