The Ministry Of Industry Reveals The Reasons For Indonesian Palm Oil Companies Not Dare To Produce Biodiesel

Illustration. (Photo: Doc. Antara)

The Indonesian Ministry of Industry (Kemenperin) explained the reasons why various palm oil companies in the country have not dared to produce biodiesel as part of the downstreaming of palm oil.

"First is a market factor. All downstream industries based on agro commodities are still waiting for the certainty of the EU Deforestation Free Regulation with Indonesian export products," said Industry Trustee at the Directorate of Forest Products and Plantation Industry, Directorate General of Agro Industry, Ministry of Industry Jefrinaldi in Padang, West Sumatra, quoted from Antara, Thursday, July 4.

This was conveyed at a workshop entitled "The Downstreaming of palm oil is an oleopangan, oleochemical, and biofuel product: Opportunities and challenges" in Padang.

The Ministry of Industry believes that if certainty regarding the EU Deforestation Free Regulation rules has been obtained, it will be good news for Indonesia, and have a positive impact on downstreaming of seven Indonesian commodities including palm oil.

"If there is certainty from the EU Deforestation Free Regulation, it will be good news for Indonesia's downstreaming, one of which is palm oil," he said.

On the one hand, Jefrinaldi said that the issue or discussion of the EU Deforestation Free Regulation is one of the challenges of downstreaming palm oil. This means that if Indonesia wants to export downstream products, the raw materials used cannot damage the forest.

Regarding these challenges, the government is currently in the lobby stage of talks between Indonesia and Europe. It is hoped that these talks will produce the best solution for increasing downstream oil palm.

He added that in 2045 the Ministry of Industry is trying to launch a palm oil-based gold Indonesia. This means that in 2045 Indonesia will try to maximize the three downstream products, namely oleopangan, oleochemical, and biofuel.