Jakarta—PT Perkebunan Nusantara (PTPN) III said the company plans to support Indonesia in achieving energy self-sufficiency through biodiesel. Mohammad Abdul Ghani, President and Director of PTPN III, said that Indonesia needs up to Rp33 trillion per year to achieve energy self-sufficiency through biodiesel.
He says the palm oil-based biodiesel development program can be achieved if domestic palm oil production increases significantly. Increasing palm oil (CPO) production is the main key.
“Currently, Indonesia’s CPO production is still at around 50 million tons per year, while to meet biodiesel needs, around 35 million to 40 million tons per year are needed,” he said in an official statement Wednesday, June 26.
Ghani also expressed concern about the excessive use of CPO for biodiesel, which could reduce Indonesia’s CPO exports. “The government has been collecting CPO export fees to incentivise biodiesel and the development of smallholder oil palm plantations,” he explained.
One important strategy proposed by Ghani is accelerating the people’s oil palm replanting program (PSR). “The current realisation of oil palm replanting is only around 20,000 to 30,000 hectares per year, whereas there are 3 million hectares that need to be replanted. If it is not accelerated, it will take 150 years. Of course, this is not possible,” he said.
The government has decided to increase the PSR program assistance from Rp30 million to Rp60 million per hectare, which Ghani considers very appropriate to boost national palm oil production. “To realise the PSR target of 550,000 hectares per year, BPDPKS needs to budget around Rp33 trillion from export levies,” he added.
Meanwhile, a member of Commission VI of the House of Representatives from the Democratic Party faction, Muslim, also admitted that the allocation of funds from the Palm Oil Plantation Fund Management Agency (BPDPKS) for the replanting of people’s oil palm was still minimal.
“BPDPKS funds have so far been used more for incentives for the biodiesel program, while the replanting of farmers’ oil palm plantations is urgent,” he said.
Muslim added that, at present, the BPDPKS funds were enjoyed by conglomerates and big businessmen, while the allotment for farmers was very small. He stressed the importance of allocating funds for smallholder oil palm replanting so that CPO production can increase to 60-70 million tons annually.
With the right strategy and support from the government and parliament, Indonesia is expected to achieve energy self-sufficiency through biodiesel. This will reduce dependence on fossil fuels, promote sustainable economic development, and improve the welfare of oil palm farmers.
The program’s success will bring Indonesia closer to its green energy targets and strengthen its position as the world’s largest biodiesel producer.
“We are optimistic that with the acceleration of the oil palm replanting program and strong support, Indonesia can achieve energy self-sufficiency and significantly reduce carbon emissions,” Ghani concluded. (Hartatik)
Banner photo: shutterstock.com
