JAKARTA – Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung has restated the need for Indonesia to expand its oil palm plantations to increase palm oil supply needed for the implementation of biodiesel mandatory programs from 50 percent to 100 percent (B50 to B100).

“Looking forward, we see that the implementation of palm oil-based B50, B60, until B100 programs will need addition of palm plantation areas to ensure the supply of palm oil, which is needed for the blending of biodiesel with fosill diesel fuel,” Yuliot said in Jakarta on Monday (24/2/2025).

He also mentioned the potentiality of small-scale plantations owned by  smallholders and cooperatives to fulfill the palm oil supply for the implementation of mandatory  biodiesel programs.

“There are plantations owned by smallholders and cooperatives that are potential to be developed to support the mandatory biodiesel programs up to B100,” he said.

Based on data from the ministry of energy and mineral resources (KESDM), the government targets the implementation of palm based B50 program in 2026, one year after the ongoing implementation of B40 since 03 January 2025.

KESDM reported that the need of palm oil supply for the production of B50 is estimated at 17.9 million tons, which is expected from a total palm plantation areas of 2.3 million hectares. For the implementation of B60 program, Indonesia will need 21.5 million tons of palm oil with a total need of new land areas of 3.5 million hectares. For the implementation of B100, Indonesia will need 35.9 million tons of palm oil with a total need of new plantation areas of 4.6 million hectares.

The implementation of the mandatory biodiesel programs is expected to reduce imports of oil fuels and strengthen national energy resilience, help generate higher economic growth, and reduce carbon emissions as biodiesel is more ecofriendly if compared to the fossil fuels, which still dominate the energy mix in Indonesia. (*) Source: KONTAN.CO.ID