InfoSAWIT, SURABAYA – Palm oil downstream industries in Indonesia are committed to actively role in reducing green-house gas (GHG) emission globally to get net zero emission (NZE). The label "low emission industry’ is not a predicate only but also the access key so that these industries could trade their products, as same as the changing consumption trends globally.
One changing consumption trend globally is the increasing preference on green products that were produced by green industries. It was known from the responsible, sustainable, and traceable production process. Sustainability in palm oil downstream industries would cover not only environment products, but also responsibility on GHG emission which was produced in the supply chain of the products.
General Director of Agro Industry, Putu Juli Ardika said that in the future GHG emission from palm oil downstream industries would be the main consideration for many consumers.
“In the future, we predicted that the awakening aspect of GHG emission from palm oil downstream industries would be the consideration for consumers to choose palm oil downstream products with low net emission index,” he said in his speech when representing Minister of Industry in Pekan Riset Sawit Indonesia (PERISAI) 2023 in Surabaya, Wednesday (25/10).
Agro industries developed 3,90% in the second quarter of 2023, significantly contributed to gross domestic product in non – oil and gas sector up to 50,87%. Palm oil industries dominated in agro industries and made them as the prior in national scale – development.
Palm oil downstream industries have about 179 kinds of downstream products within about 90% export volume in processed products. Only about 10% of export volume in raw materials, such as, crude palm oil (CPO) or crude palm kernel oil (CPKO).
Putu continued, Indonesia as the biggest palm oil producer in the world has the big chance to be the leader in decarbonization by using palm oil downstream products massively in this country. It would reduce GHG emission and make CPO price remain stable in the globe. It would also encourage smallholders within profitable fresh fruit bunch price.
One concrete strategy to realize NZE is by applying environmentally production technology. Ministry of Industry initiated new technology application to produce red palm cooking oil without boiling (sterilization) with SPOT (Steamless Palm Oil Technology) model. It could reduce GHG emission about 20,84% from conventional mill within the same capacity.
Ministry of Industry also appreciated Palm Oil Plantation Fund Management Agency that supported research and development program in national scale to get decarbonization to realize NZE in 2050 or one decade earlier than the target globally that would be in 2060.
The collaboration among the governments, industries, and research institutions would play the key roles to realize NZE vision. “We hope research topic would be sustainable to realize NZE that has been established,” Putu said. (T2)
