Indonesia intensifies oil palm cultivation to meet biodiesel demand

Indonesia is expanding its oil palm cultivation to increase crude palm oil (CPO) production as a raw material for 50% biodiesel (B50), according to the country’s Ministry of Agriculture.

The ministry’s acting director general of Plantations Heru Tri Widarto said that intensification is a faster solution compared to replanting, which can take up to three years, as it can be carried out not only on smallholder palm oil farms but also on private plantations.

With Indonesia’s oil palm plantation area reaching 16.8 million hectares, the potential to increase production significantly remains through optimised land use.

The ministry is currently conducting a study to balance the need for CPO across food, energy, and export needs, which will help define production increase targets.

According to the Indonesian Palm Oil Producers Association, CPO production reached 50.07 million tonnes in 2023, with domestic consumption rising due to the implementation of the B35 biodiesel policy.

Plans to raise the biodiesel blend to B40 by January 2025 are in motion, along with preparations for B50 implementation.

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Tags: CPO, Plantations, Indonesia, Crude palm oil, Production, biodiesel, oil palm, cultivation