PALMOILMAGAZINE, JAKARTA – In a Commission XI hearing at the Indonesian House of Representatives (DPR RI), Andi Yuliani Paris, a member of the National Mandate Party (PAN), raised concerns about the progress of the palm oil-based biodiesel program developed by PT Pertamina. With a critical tone, Andi questioned the collaboration between Pertamina, the Palm Oil Plantation Fund Management Agency (BPDP), and research institutions like IPB and BRIN.
“Pertamina has developed palm oil biodiesel, and IPB has conducted extensive research. But how is this actually being implemented in the field? We cannot just keep going in circles with reports,” she stated during the Commission XI hearing with BPDP, as monitored by Palmoilmagazine.com on Monday (17/2/2025).
Slow Progress on Palm Oil Replanting
Andi also highlighted the target of replanting 120,000 hectares of palm plantations by 2025, noting that only nine months remain to meet this goal.
“We’re almost in March 2025—where is the progress? It shouldn’t just be numbers on paper,” she stressed. Drawing comparisons to failed forestry projects, she warned, “We’ve seen reforestation programs before, but when we checked the field, there were no trees. Let’s not repeat that mistake.”
Biodiesel Subsidy Concerns
The biodiesel subsidy also came under scrutiny. Andi questioned whether government incentives primarily benefit large corporations rather than smallholder farmers.
“Does BPDP have concrete data on how subsidies impact the price of Fresh Fruit Bunches (TBS) at the farmer level? The price gap between biodiesel and diesel fuel keeps widening. If farmers remain poor while corporations rake in profits, something is wrong,” she remarked.
Calls for Transparency in Funding
Addressing the IDR5 trillion reserve fund allocated for long-term investment, Andi emphasized the need for independent audits to prevent corruption and misuse of public funds.
“There must be an independent auditor ensuring that these funds are not misappropriated. Public money should not become an opportunity for corruption,” she insisted. She also urged BPDP to evaluate its budget efficiency to ensure policies genuinely benefit smallholders.
Challenges in Workforce Training
Andi also raised concerns over the ambitious workforce training program, which aims to train 27,000 skilled workers by 2025.
“With just nine months left, how do you plan to recruit them? And more importantly, how will you ensure these graduates find jobs rather than just earning certificates?” she asked. She encouraged BPDP to partner with Pertamina, IPB, and BRIN instead of starting from scratch.
“BRIN has extensive biodiesel research—make use of it!” she urged.
Ensuring Sustainable and Equitable Development
While Andi appreciated BPDP’s collaboration with IPB and BRIN, she stressed that the partnership must be more than just a formality.
“This is not just about projects, it’s about sustainability. Ensure that smallholders benefit, the country is not at a loss, and our green energy sector truly becomes independent,” she concluded.
As a final note, Andi expressed hope that all stakeholders remain committed to ensuring the palm oil biodiesel sector thrives from upstream to downstream—without leaving smallholders behind. (P2)
