PALMOILMAGAZINE, JAKARTA – During a press conference on the 2024 Budget Plans in Jakarta on the evening of Friday, August 16, 2024, Finance Minister Sri Mulyani Indrawati announced that the government will enhance the palm oil plantation downstream sector next year.
The objectives include improving smallholders’ welfare, boosting export performance, and advancing renewable energy through biodiesel programs B35 and B40.
Minister Indrawati emphasized that the focus will not only be on extraction but also on adding value to the palm oil itself. “The downstream sector, encompassing both the plantations and the commodity itself, will be a key focus for Indonesia,” she stated, as reported by Palmoilmagazine.com from Tempo on Tuesday (20/8/2024).
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The government plans to optimize palm oil export values by adjusting export taxes and duties. Data shows a positive trend in palm oil exports, increasing from US$ 16.8 billion in 2015 to US$ 23.9 billion in 2023.
Besides, the government would maintain FFB rice stable to support the smallholders’ welfare. These would be also to confirm crude palm oil (CPO) production and affordability and biodiesel price.
Renewable energy development program, particularly biodiesel, significantly delivered impacts for diesel import safety. Biodiesel distribution significantly got escalated from 0,92 million kiloliters in 2015 to be 2,24 million kiloliters in 2023, it saved the exchange that reached Rp 121,5 trillion, while in 2015 it just reached Rp 3,7 trillion.
Besides delivering economic impacts, the program contributed to get carbon emission reduction. In 2023, biodiesel program helped reduce carbon emission up to 32,7 million tons equivalent (CO2e), that meant, Indonesia was committed to support the global scale – effort to solve climate change.
Besides palm oil, the government decided other commodities, such as, rubber, coconut, and cocoa as the priorities in agricultural downstream sectors in 2025 -2029. (P2)
