InfoSAWIT, JAKARTA - PT Sinar Mas Agro Resources and Technology Tbk (SMAR) confirmed to get its role as fatty acid methyl ester (FAME) supplier in palm oil base to produce biodiesel this year.

Ronny Rusli, Head of Corporate Affairs Sinarmas Agribusiness and Food said that the company got biodiesel allocation about 1,5 million kiloliters (kl) from the government.

"The company supports the government’s policy in vegetable fuel in Indonesia. The FAME quality that the company supplies, is determined by the government through annual allocation program. In 2024 the government allocated about 1,5 million kl for the company,” Ronny Rusli recently said, as quoted from Kontan.

He also mentioned biodiesel program is one strategic program of the government to create new demands on palm oil derivative products. “The program is strategic and useful for palm oil industries in a whole; from the smallholders to downstream sectors. By having new demands on palm oil product, supply and demands would remain good and the price would be stable,” he said.

Other information revealed that per 31 March 2023, SMAR cultivated planted areas about 36.400 hectares, including the plasma areas about 31.300 hectares. From the mill operational, SMAR got palm oil mills about 4.350.000 tons capacity per year, palm kernel mill about 810.000 tons capacity per year, refined about 2.880.000 tons capacity per year, and biodiesel mill about 1.050.000 tons capacity per year.

SMAR mostly sold its products in the forms of CPO derivative products, such as, palm cooking oil, margarine, specialty fats, biodiesel, and oleochemical. These are the same with the government’s policy to encourage downstream program in many industrial sectors, including palm oil. The management of SMAR would always escalate its competence to produce many palm oil derivative products in the wider portfolio. (T2)