Indonesia increases oil palm plantations to meet biofuel demand
The Indonesian Ministry of Agriculture announces its intention to increase oil palm cultivation to increase the production of palm oil, which will be used to produce biofuel for B50.
Expanding the area is a quicker solution than replanting plants, which can take up to three years.
Palm oil consumption in the country has increased since the introduction of the B35 biodiesel mandate. By January 2025, the country’s authorities plan to increase the share of biodiesel in fuel to B40, and have already begun preparations for the introduction of B50.
Currently, the area of oil palm plantations in Indonesia is 16.8 million hectares, and oil production needs to be increased by optimizing land use.
According to the Indonesian Palm Oil Producers Association, the country’s production in 2023 reached 50.07 mln tons.
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