Indonesia’s Treasure: The Extraordinary Plants

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In recent years, the development of the biofuels industry has increased rapidly. As an agricultural country, Indonesia has the advantage of developing biofuels (biodiesel) because it has this one plant as the main raw material. Do you know what raw material plants are referred to?

If you answered “Palm Oil”, then your answer is correct. As a country that is developing biodiesel, Indonesia benefits from the abundant number of oil palm plants. Oil palm plants have a productive period of 25-30 years. Because of this, seed selection will affect productivity for decades to come. The oil palm seeds are then processed into palm oil. This palm oil then goes through a process in such a way that it becomes ready-to-use biodiesel.

Quoted from The Palm Scribe, here are some interesting facts related to the Indonesian oil palm plantation industry:

  1. Indonesia is one of the largest producers of palm oil in the world, contributing around 85 percent of global supply.
  2. Indonesia has the largest oil palm plantations in the world, reaching more than 16 million hectares.
  3. Indonesia has more than 700 oil palm plantations developed throughout the country.
  4. The oil palm plantation sector and the national palm oil industry are the biggest drivers of the national economy in Indonesia.
  5. In 2020, the added value of crude palm oil to biodiesel will reach IDR10.36 trillion.
  6. More than 50% of the world’s vegetable oil needs come from palm oil; the remainder comes from sunflower, soybean, coconut, peanut and cottonseed oils.
  7. Indonesia is the first country in the world that successfully implements B30 (a mixture of 30 percent FAME with 70 percent diesel).

Through the mandatory palm-based biodiesel 30 (B30) program launched by the government, Indonesia is able to save foreign exchange up to USD2.66 billion or equivalent to IDR38.31 trillion in 2020. Not only that, the use of biodiesel also contributes to the absorption of labor and reduction of household gas emissions glass (GHG), as well as improving environmental quality.

Of the various virtues above, it’s no wonder that oil palm is called The Incredible Tree.