Notes from Smallholders: B35 Does Not Make FFB Price Get More Expensive

Notes from Smallholders: B35 Does Not Make FFB Price Get More Expensive

InfoSAWIT, JAKARTA – Smallholders in Serikat Petani Kelapa Sawit (SPKS) criticized the biodiesel mandatory plan to escalate from B30 to be B35. The plan might be in a hurry without any serious evaluation and could not be a solution to improve palm oil governance in Indonesia.

SPKS thought the policy could be the response of Indonesia to what European Union (EU) would do discriminate and protection. This is too much for SPKS.

Palm oil needs namely in energy sector are irrelevant to improve palm oil governance which is happening now and what EU would regulate.

But SPKS keeps supporting downstream expansion to help price stability and material from the smallholders. “What we know ever since biodiesel mandatory program ran in phase from B20 to B30 until now, it does not contribute to make fresh fruit bunch (FFB) get more expensive. It also does not contribute to smallholders’ inclusivity to supply biodiesel materials,” General Secretary of SPKS, , Mansuetus Darto said, as in the official statement to InfoSAWIT recently.

Until now there is no vegetable oil entity that is in partnership with smallholders to procure materials. What the government targeted to make and stabilize FFB price in independent smallholders’ level really does not happen.

“The smallholders still sell their plantation production very cheap. Material procurement for biodiesel program is mastered by big plantation companies or third sides. Again, big companies (corporates) get lucky with what they do with vegetable fuel entity,” he said.

He thought, palm oil rareness in 2022 could be the moment to evaluate and improve downstream sectors for food ad energy needs in this country.

Escalating biodiesel mixture to be B35, he thought, would create the same thing in 2022 which means, it does not solve the problems. The impact would influence FFB price in smallholders’ levels.

“There should be solution to diversify material. The government should think about it. It does not need from palm oil but could open other chances from other materials, such as, used palm cooking oil for it is potential to be materials to produce biodiesel,” he said.

There should be close regulation about clear percentage and would not impact to palm oil needs for the future energy and food sectors in this country. Palm oil industries do not seriously notice sustainability aspects, the plans to escalate in phase, and ambitious production target that would impact to plantation expansion to fulfill its material.

“If there is no future improvement, there would be issues, such as in environmental and other social ones,” he said. (T2)