InfoSAWIT, JAKARTA – As one of the world's largest palm oil producers, Indonesia plays a crucial role in the biofuel, food, and oleochemical industries. Currently, Indonesia’s palm oil contributes around 23% of global vegetable oil production and 58% of the world's palm oil output.
In addition to being a significant source of national revenue, the palm oil industry provides jobs for millions and is a cornerstone of Indonesia’s economy. The government is committed to ensuring that this industry can grow sustainably, efficiently, and competitively.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted these points in a virtual keynote speech at the Indonesian Palm Oil Conference on Thursday, November 7, 2024. Airlangga emphasized that Indonesia’s food and energy policies are aimed at achieving self-sufficiency, reducing reliance on imports, and ensuring sustainability to support economic resilience and environmental goals.
Airlangga explained that Indonesia’s food policies prioritize self-sufficiency and affordability, focusing on staple commodities like rice, soybeans, and palm oil products. On biodiesel policy, the objective is to lessen dependence on imported fossil fuels, promote a more sustainable energy mix, and support the palm oil sector. A key aspect of this policy is the mandate for palm-based biodiesel (B35) for transportation, which is set to increase to B40 in 2025.
Furthermore, Airlangga outlined several strategies to enhance palm oil production to support economic growth, energy needs, and food security while protecting the environment. One such strategy is expanding the Smallholder Palm Oil Rejuvenation Program (PSR). Since 2017, Indonesia has provided PSR grants for approximately 360,000 hectares, benefiting 158,000 smallholder farmers. Additionally, adopting good agricultural practices, cultivating more productive palm varieties, and promoting sustainable palm oil certifications like the Indonesian Sustainable Palm Oil (ISPO) standard are integral to this approach.
Looking ahead, the palm oil sector will continue to face challenges, particularly from external pressures related to environmental concerns, often framed with imbalanced or inaccurate data, as seen with the European Union's Deforestation-Free Regulation (EUDR). The conference serves as a platform to reaffirm Indonesia’s commitment to sustainable practices and to continuously improve standards.
“We believe that Indonesia has the potential to significantly boost palm oil production and productivity in the coming years,” concluded Minister Airlangga in his official statement, as quoted by InfoSAWIT on Friday, November 8, 2024. (T2)
