InfoSAWIT, BOGOR – Executive Director of the Indonesian Vegetable Oil Industry Association (GIMNI), Sahat Sinaga addressed the lack of clarity in the government's strategy for developing palm oil-based aviation fuel (avtur). During the Workshop for Journalists in the Palm Oil Downstream Industry, attended by InfoSAWIT, in Bogor on Saturday, February 22, 2025, Sahat emphasized that the development of palm oil avtur requires a clear commitment to technology and raw material allocation.
He noted that Indonesia has the technological capability to produce avtur through two processes: HVO and polymerization. However, its implementation has been deemed slow. “For example, we want to build an avtur industry, but the raw materials are unclear. Palm oil could be a solution, but the government has yet to establish a concrete roadmap,” he said.
He criticized the dependency on global oil prices. “If crude oil is priced at US$40 per barrel, why should we force palm oil to become avtur? This needs to be calculated economically. We must avoid being mere trial and error players,” he asserted.
Sahat also questioned the policy of expanding palm oil plantations. According to him, of the 2.1 million hectares of land proposed for plantations, 650,000 hectares should be allocated to farmers through the Plantation Management Agency (BPP), not corporations. “Private companies often expand land uncontrollably, while small farmers struggle to access it. This triggers conflicts such as land grabbing in Central Kalimantan,” he explained.
Data from DMSI shows that palm oil productivity has decreased from 50 million tons (2023) to 48.7 million tons (2024). “This 4% decline is due to poor land management and uncontrolled deforestation,” he added.
Sinaga proposed diversifying oil-producing crops beyond palm oil, such as nyamplung (Calophyllum inophyllum), which can grow in dry areas. “Pertamina should be allocated 1.3 million hectares of land to plant this crop. Palm oil is not the only energy solution,” he stressed.
He also urged the government to finalize the establishment of forest boundaries in accordance with Law No. 41/1999 and Presidential Regulation No. 5/2020. “Conversion production forests must be clearly marked. We must not let palm oil farmers be accused of encroaching on forests when the boundaries are unclear,” he insisted.
Call for Countervailing Power
Sahat Sinaga emphasized the importance of creating countervailing power to control corporate dominance. “If Pertamina or other state-owned enterprises have independent land, they can stabilize prices and supply. We must not allow the market to be dominated by a handful of players,” he stated.
In conclusion, he reminded the new government cabinet to focus on pro-environment and pro-farmer policies. “The future of Indonesia's palm oil depends on our courage to move away from business as usual. We must ensure that avtur and biodiesel do not just become jargon while farmers continue to suffer,” he concluded.
With these complex challenges, the public awaits concrete actions from the government to optimize palm oil potential while ensuring ecological sustainability and social justice. (T2)
