GAPKI Chairman Eddy Martono recently had an opinion piece in the Jakarta Post, analyzing Indonesia’s ambition to boost sustainable palm oil production.
At the heart of the piece is Coordinating Maritime Affairs and Investment Minister Luhut Panjaitan confidence in Indonesia’s potential to replace fossil fuels with biofuels sourced from palm oil, projecting an annual production of around 100 million tonnes by 2045. This shift is seen as a crucial step in reducing Indonesia’s reliance on oil imports.
Luhut emphasizes palm oil’s role in Indonesia’s green economy strategy, alongside decarbonizing electricity, promoting electric vehicles, advancing green industry, and developing carbon sinks. As the world’s largest producer of crude palm oil (CPO), biodiesel, and used cooking oil, Indonesia has been proactively promoting CPO-based biofuels, with current initiatives focused on B35 biofuel and research into next-generation biofuels.
Although there are challenges, including a slowing growth rate in national CPO production and the complexities of increasing output sustainably, Martono proposes several strategies, such as developing regulatory frameworks for sustainable plantation development, improving plantation land cultivation rights, addressing issues with existing plantation licenses, and avoiding market distortion measures.
A significant focus was also placed on supporting smallholders, who own about 42% of Indonesia’s oil palm plantations, by improving access to resources, encouraging best farming practices, and intensifying efforts to increase crop yield.
Finally, the article touched on the impact of the European Union’s Deforestation-free Regulation on farm commodities, urging strengthened cooperation to enhance sustainable palm oil governance and improve Indonesia’s trade position.
Read the full article here for a comprehensive insight into Indonesia’s palm oil industry and its sustainable future.—