Facts Sheet About Palm Oil in Indonesia
As one form of renewable energy, biofuels have great prospects for development. Besides being able to reduce dependency on fossil fuels, biofuels development can also increase the availability of national energy supply. Furthermore, the development of biofuels is believed to be one of the most sustainable energy search programs. Here are some interesting facts about palm oil for you to deep-dive into:
- The main raw material of biodiesel in Indonesia today is derived from crude palm oil (CPO). According to data from the Ministry of Agriculture in 2017, the potential for oil palm development is 35 million tons of CPO, 146 million tons of FFB, and 26.3 million tons of TBK. The majority of Indonesia’s palm oil production is exported and generates foreign exchange of more than 20 billion USD per year.
- Palm oil plantations are also often linked as the main cause of deforestation in Indonesia. Conventions on primary forests for other uses were initiated before the expansion of oil palm plantations began. Palm oil plantations grow and occupy degraded land. Interestingly, oil palm actually turns degraded land into productive areas. Palm oil plantations that are converted directly from production forests are only about 3%.
- The biodiesel implementation program has actually been carried out for quite a long time. Since 2018, the Indonesian government has mandated the use of palm oil-based biodiesel in diesel fuel. Now the use of palm oil as a source of biofuels has reached the B30 implementation stage which was implemented in January 2020.
The government hopes that the development of palm oil-based biofuels will continue to provide economic benefits for many sectors and of course for farmers or communities managing palm oil plantations themselves. Watch this video to learn more about palm oil in Indonesia.