InfoSAWIT, JAKARTA – Coordinator Minister in Economy, Airlangga Hartarto said that some new policies would be implemented to support sustainable palm oil industries, such as, the publication of president’s regulation about the National Scale - Strategies and Action of Sustainable Palm Oil or Strategi dan Aksi Nasional Kelapa Sawit Berkelanjutan (SANAS KSB) in 2025 - 2029. This would be about to reinforce palm oil governance to be more sustainable and environmental.
Palm oil industries played strategic roles in the national scale economy in this country. They significantly contributed to vegetable oil trade globally, reached 42% of the total vegetable oil supplies in the world, and mastered 62% of crude palm oil (CPO) trade. These industries contributed in non – oil and gas exports from Indonesia that reached US$ 40 billion or about 14,2of the total non-oil and gas export nationally.
Airlangga Hartarto said that the industries positively provided employments. “These industries directly hired 2,4 million independent smallholders; directly and indirectly provided 16 million employments," he said in the Seminar Policy Brief of PKN Tingkat I Angkatan LX Lembaga Administrasi Negara (LAN) 2024 in Jakarta Wednesday (2/10).
Plantation sectors, including palm oil, positively developed in the second quarter of 2024 that reached 5,05%.
Airlangga said that Palm Oil Plantation Fund Management Agency (PO PFMA) that was established in 2015, played significant roles as the strategic agency to formulate policies from the upstream to downstream sectors. PO PFMA also facilitated biodiesel mandatory program that successfully reduced green-house gas up to 32,6 million tons of CO2 in 2023 through B35 program. In 2024, the target to distribute B35 would be 13,4 million kiloliters and the government still prepares B40 implementation in 2025 with the distribution target up to 16,08 million kiloliters and the potential saved revenue about Rp 158,86 trillion.
“Indonesia is committed to minimize diesel import by encouraging biofuel production in this country from B35 to be B40 and even B100 in the future,” Airlangga said, as InfoSAWIT quoted, Friday (4/10/2024).
The government still develops palm kernel expeller (PKE) as the animals’ food and material for bioethanol production. It is hoped to ba acknowledged as sustainable aviation fuel by International Civil Aviation Organization (ICAO) through carbon offsetting and reduction scheme for international aviation (CORSIA).
To face the global scale challenges, such as, European Union Deforestation-free Regulation (EUDR) that would be implemented by the late of 2024, the Government of Indonesia developed national data and sustainable commodities information dashboard. It would cover some commodities, such as, palm oil, cocoa, rubber, coffee, and wood that would get the impacts from EUDR.
“EUDR obliges the legal and original verification of plantation areas through cultivation documents published by Ministry of Agriculture,” he said.
It was also attended by Deputy in Food and Agribusiness Coordination, Dida Gardera; Deputy in Business Development Coordination Ministry of Enterprises, Elen Setiadi; Head in duty of LAN Muhammad Taufiq; and the participants of PKN Tingkat I Angkatan LX 2024. (T2)
