Indonesia’s Chief Minister of Economy is confident that palm oil production can be increased

Indonesian Economy Chief Minister Airlangga Hartarto said on Thursday (Nov. 7) that he is confident palm oil production can be increased in the coming years to meet the country’s growing demand for biofuels.

Next year, the mandatory percentage of biodiesel in Indonesia will be increased from 35% to 40% palm oil-based.

APROBI, an Indonesian biofuels association, estimates that increasing the mandatory palm oil percentage to 40% could increase palm oil consumption for energy to 13.9 million tons, compared to the estimated 11 million tons required this year under B35.

Indonesia’s vegetable oil production has stagnated in recent years due to aging trees.

The government is expanding an oil palm replanting program by smallholder farmers to meet increased demand, Eirlangga told participants at the Indonesia Palm Oil Conference.

Since 2017, Indonesia has allocated funds to smallholder farmers to replant 360,000 hectares (890,000 acres), he said, adding that the government is committed to improving farming practices to increase yields.

The replanting program is behind schedule. The launch goal was to replant 180,000 hectares each year.

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Tags: palm oil