PALMOILMAGAZINE, JAKARTA — The government has been urged to ensure that renewable energy policies prioritize the welfare of farmers, particularly smallholder oil palm growers.
“The government must make sure that renewable energy policies truly serve the people,” said Chairman of the Palm Oil Farmers Union (SPKS), Sabarudin, in a official statement to Palmoilmagazine.com on Thursday, November 13, 2025.
Sabarudin highlighted concerns over the planned increase in the biodiesel blend from B40 to B50, saying it could potentially push down the price of fresh fruit bunches (FFB) and reduce farmers’ income. He emphasized that such policies should be developed based on comprehensive economic studies and involve farmers in the decision-making process.
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“Farmer participation is essential to ensure that the biodiesel program remains genuinely sustainable,” Sabarudin added.
Similarly, Chairman of the Association of Smallholder Palm Oil Farmers (ASPEKPIR), Setiyono, voiced his concern over the proposed policies, especially the increasing tax burdens and discussions surrounding Forest Area Designation (PKH).
He stressed that smallholder palm oil farmers deserve full government support. “Smallholders have contributed significantly to state revenues and taxes. We must not allow the palm oil industry to be pressured from all sides until its quality declines—because in the end, it’s our competitor countries that will benefit,” said Setiyono.
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Both SPKS and ASPEKPIR expressed support for the 50 percent biodiesel blend (B50) policy, as long as it does not harm farmers who form the backbone of Indonesia’s palm oil industry.
“We only hope that the biodiesel program won’t drive down prices and disadvantage small farmers,” Setiyono added.
The two organizations also called on Commission XII of the House of Representatives (DPR RI) to actively defend farmers’ interests in every discussion on energy and environmental policies. (P3)
