Scroll Out The B50 Program, Bahlil Opens The DMO Option To Meet Supply

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadali opens up opportunities for the implementation of the Domestic Market Obligation (DMO) scheme for crude palm oil (CPO) commodities.

This is intended to meet CPO needs for the implementation of the 50 percent biodiesel program or B50 and reduce diesel imports.

Bahlil said, actually the government has three options to meet CPO needs, namely maximizing existing CPO production, clearing new land and reducing Indonesia's CPO exports.

"Well, if the third alternative is used, cutting some exports, then one option, I repeat, one option is to regulate domestic and foreign needs. That includes one of the instruments for DMO," said Bahlil, Tuesday, October 14.

He added that the calculation of these three options was due to an increase in the conversion of biodiesel to 50.

In addition, the need for CPO will also certainly increase compared to before.

Bahlil explained that the implementation of B50 in 2026 had been decided in a congested meeting.

The Directorate General (Ditjen) of New, Renewable Energy, and Energy Conservation (EBTKE) is currently conducting tests.

"Now that Prof. Eniya has calculated the machine test, it is planned that in the second semester of 2026 we will start implementing it," Bahlil explained.

This is in line with the statement of the Minister of Agriculture Andi Amran Sulaiman who said the government would reduce exports in the form of crude palm oil (CPO) by 5.3 million tons.

This was conveyed to reporters after a limited meeting (ratas) with President Prabowo Subianto at the State Palace, Jakarta, Thursday, October 9.

This policy is carried out for the availability of 50 percent biodiesel mixed material or B50 in 2026.

Namun, menurut Mentan Amran, hal tersebut masih dinamis mengikuti kondisi pasar melihat kepentingan masyarakat.

Jika CPO dunia sedang dalam harga yang baik maka pembatasan tersebut akan diturunkan menjadi B40 kembali.

Namun saat harganya turun, kebijakan tersebut akan diberlakukan kembali.

Indonesia saat ini mengekspor 26 juta ton CPO per tahun dari total produksi nasional yang berkisar di angka 46 juta ton.

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However, according to Minister of Agriculture Amran, this is still dynamic following market conditions to see the interests of the community.

If the world's CPO is at a good price, the restrictions will be lowered to B40 again.

However, when the price drops, the policy will be reinstated.

Indonesia currently exports 26 million tons of CPO per year from the total national production which ranges from 46 million tons.