SRP Fund Reached Rp 6,59 Billion: Biodiesel Incentive Did Rp 110,05 Billion

SRP Fund Reached Rp 6,59 Billion: Biodiesel Incentive Did Rp 110,05 Billion

InfoSAWIT, JAKARTA – The fund realization to smallholders replanting program (SRP) that Palm Oil Plantation Fund Management Agency (PFMA) supports, as Director of PFMA, Eddy Abdurrachman said, since 2016 to 2021, covers about 242.537 hectares; 105.684 planters, and Rp 6,59 billion in 21 provinces in Indonesia.

“The realization in 2021 is not as good as in the previous years. It happens for the legal areas, namely in forest regions, overlapping areas, smallholders’ institutions, expensive CPO that causes smallholders reluctant to conduct SRP,” he said in online press conference, Tuesday (28/12/2021) in Jakarta that InfoSAWIT joined.

In biodiesel incentives since 2015 to stabilize crude palm oil (CPO) price, urge energy security and independency nationally, reduce green-house gas (GHG) emission, save exchange from diesel import to 2021, PFMA distributes about 33,07 million kiloliters.

PFMA also reported, in 2015 - 2021 the incentive reaches Rp 110,05 billion while in 2021, biodiesel incentive reaches Rp 51,86 billion within about 9,18 million kiloliters.

“Palm oil biodiesel and diesel price gap is about Rp 7000/liter, that is why 2021 incentive distributed is about Rp 51,86 billion,” he said.

He also mentioned, biodiesel program saved exchange because Indonesia does not import diesel that reached Rp 209,62 billion and Indonesia could reduce GHG emission up to 49,45 million tons of CO2e.

“By the increasing crude oil price in the world and normal CPO price, it is hoped, biodiesel and diesel price in 2022 would be better,” Eddy said. (T2)