InfoSAWIT, JAKARTA -How much is the exchange saved if the vegetable fuel is realized? Based on the data, in 2018, the CPO production nationally reached 46 million tons, kernel reached 4,3 million tons. The numbers could fulfill the domestic vegetable fuel needs about 700 – 750 thousand barrel per day. In addition, the material from palm oil has the low FFA.
The needs of food oil that consists of FFA maximally 5% would have no issue to produce fuel which needs higher FFA. The planters would be relief to harvest their plantations. They would not depend on the time to harvest or sell theirs to the factory.
By the development Industrial Vegetable Oil or Industrial Degummed Oil (IVO/IDO), the source of material from the plantations would help many sides, namely the planters and the smallholders.
From the above description, Indonesia would be the biggest renewable bio hydrocarbon producer in the world.
If in 2025 the imported vegetable fuel increases and could be substituted by vegetable fuel up to 30%, the needs of bio hydrocarbon and biodiesel would be 360 thousand barrel per day. This could be from palm oil and directly save the exchange up to US$ 25,2 million per day or about US$ 9,2 billion per year.
So it needs to substitute 30% of imported fuel from vegetable fuel. But nowadays condition is that the needs of vegetable oil reach 50% of palm oil production. So it needs to notice the domestic needs of 20% food oil. So in the future, there should be more stocks of fatty acid from the vegetable oil nationally.
The government of Indonesia could make program and implement the extensification and intensification of palm oil plantation nationally and sustainably so that there would be abundant material and would not be fluctuation in price. There should be available material within the same buying price to be processed as vegetable oil. It could be from the dedicated oil palm plantation. (Chairman of Ikatan Ahli Biofuel Indonesia /IKABI, Prof. Dr. Tatang S)
For more, please read InfoSAWIT, January 2019