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October 23, 2024 | 06:00 pm
TEMPO.CO, Jakarta - Agriculture Minister Andi Amran Sulaiman has assured that the development of environmental fuel from palm oil, known as biodiesel 50 or B50, will not deplete the stock of raw palm oil or Crude Palm Oil (CPO). The government is designing the implementation of B50 following the successful rollout of B40 next year.
Biodiesel 50 is a fuel blend consisting of palm oil and diesel in a 50:50 ratio. “We are prioritizing B50 as we have sufficient ingredients. We only require 5.3 million tons of CPO,” he said at the Agriculture Ministry office in South Jakarta on Tuesday, October 22.
He noted that Indonesia's current production capacity of raw palm oil is around 46 million tons, while domestic needs are approximately 20 million tons, and exports stand at 26 million tons. “If we take 5.3 million tons for B50, there will be no supply issues,” he asserted.
The use of B50 will be adjusted based on domestic needs. The government will prioritize domestic consumption while also striving to increase CPO production capacity.
Previously, the Rector of the Bogor Agricultural Institute (IPB), Arif Satria, estimated that an additional 9.2 million hectares of palm oil plantation land would be required to meet the demands of B50. He emphasized that the expansion of palm oil plantations is driven by the development of biodiesel, which increases demand and production capacity.
This expansion raises concerns about environmental crises due to the massive deforestation associated with palm oil plantation growth. “I believe this will become an international issue,” Arif said on Monday, October 14.
Arif further highlighted that the development of B50 will also increase the demand for raw materials like palm oil, potentially leading to a higher risk of palm oil stock deficits.
Adil Al Hasan contributed to the writing of this article.
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