Shrinking Oil Palm Plantations to Hamper Indonesia’s Implementation of B100

The next government of President-elect Prabowo Subiano will find it difficult to realize the implementation of biodiesel 100 percent (B100) program due to the shrinkage of oil palm plantation in Indonesia, according to a news report posted in GAPKI (Indonesian Palm Oil Association) website on May 06.

At GAPKI’s Halal Bihalal (Eid at-Fitr Gathering) with media last April 30, Budi Mulyanto, Head on Palm Oil Study Center at Bogor-based University of Agriculture (IBP), told the press that in the current supply condition, the country will find it difficult to allocate crude palm oil (CPO) for food consumption and for feedstock for energy production. Upgrading from the current B35 to B100 will at least double the need for CPO feedstock to produce the biodiesel.

He cited the continued shrinkage of oil palm plantations is caused by the implementation of the omnibus law on job creation. “Of the total 3.4 million hectares of plantation categorized as encroaching forests, 2.4 million hectares are subjected to the implementation of article 110 B.  It means that such plantations are only allowed for just one cycle of cultivation and after that they will become forest areas,” he said. Article 110 B categorizes plantation areas as illegal, although  such had been developed under the transmigration program initiated by former President Suharto since 1986, he said.