Palm Oil Is The Key To Prabowo's Government To Achieve Fuel Independence

JAKARTA Unpad economic observer, Ina Primiana assessed, the ideals of independence and energy sustainability can be realized by referring to oil palm which has great potential as raw material for fuel oil (BBM) in the future.

In my opinion, the potential for fuel is palm oil. Now, 67 percent of palm oil has become processed products. One of them is fuel," he said in a written statement, Sunday, May 11.

Previously, President Prabowo Subianto at the Halalbihalal Retired TNI AD event, in Jakarta, Tuesday, May 6, stated his government's determination to achieve fuel independence in the next five years.

According to Ina, to achieve the self-sufficiency target of palm oil-based fuel in the next five years, accurate and comprehensive data is needed as well as the importance of mapping production, domestic needs, and detailed export volume of palm oil.

"Well, to reach those five years, there needs to be data on how much our palm oil produces, then for what. How much is exported? How much is it for domestic needs," he said.

Therefore, he reminded that the calculation should be carried out thoroughly taking into account the current conditions and projections in the next five years.

Ina emphasized that despite being one of the largest producers, Indonesia still has to consider many aspects, including the position of other countries such as Malaysia.

The government's policy in maintaining the sustainability of palm oil production, including through the replanting process and strengthening supply chains from upstream to downstream is also important. So, it depends on the government's policy to protect it from upstream to downstream. To want everything, the supply chain must also be maintained," said Ina.

He considered that President Prabowo's target was very important to be followed up.

Moreover, he continued, Indonesia has experienced a fuel deficit since 2004.

Currently, 56 percent or about 284 million barrels of Indonesian fuel supply are imported.

"If the average world oil price is in the range of 70 US dollars per barrel, then we spend nearly 20 billion US dollars, or the equivalent of about 9 percent of the state budget. Therefore, to achieve the energy independence target, we also need to find an allerated fuel source," said Ina.