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Establish Special Agency to Nationally Encourage Palm Oil Development

Doc. InfoSAWIT
Establish Special Agency to Nationally Encourage Palm Oil Development

InfoSAWIT, BANDUNG - Malaysia has confirm itself to be the main actor in palm oil sector by producing more than 260 derivative products from crude palm oil (CPO), including tocotrienols and tocopherols that were directly extracted from palm oil trees.

The success was supported not only by sophisticated technology but also the security and roles of regulations. Unfortunately, Indonesia that has big potential in the industries, is still blocked by uncertainty and fast regulation substitution.

Indonesia has larger palm oil plantation potential than it in Malaysia. But uncertain regulation and many ministries involvement would postpone the industries to develop.

Knowing the progress, Chairman in duty of Indonesian Palm Oil Board, Sahat Sinage proposed to get more approach approaches and be efficient by establishing one agency that would deliver direct report to President. The related ministries would be only as supporters.

“We need conducive markets, stable regulation. By having one agency that focuses and be consistent, palm oil downstream industries would be developing well,” Sinaga told at Workshop Jurnalis Industri Hilir Sawit in Bandung that InfoSAWIT attended, Thursday (1/2/204).

He also told that palm oil industries would be much more developing with the supports of regulation and should be consistent. The regulations should not be substituted to help Indonesia get its position back in palm oil industries.

Head of Sustainability Asosiasi Produsen Biofuel Indonesia (Aprobi), Rapolo Hutabarat told new dimension in the discussion. He thought it needs material source diversification to support biofuel development. Hutabarat also told that depending on palm oil would not be enough. Indonesia needs to cooperate with same kind vegetable oil (producers).

“We should not depend on palm oil only to develop biofuel. We would reach the goal by taking other vegetable oil producers,” he said.

Hutabarat also reminded that in 2024, it would need 2 million tons more to fulfill biodiesel 40 percent (B40) needs. It is important to maintain material supplies so that industrial investment would always go on.

By solving the obstacle of regulation, but focusing on innovation and sustainability, and also material source diversification, Indonesia would reinforce its position in palm oil industries and support to develop biofuel for more sustainable future. (T2)