DPR Encourages Increasing Domestic Palm Oil Productivity To Support B40 Policy

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Chairman of Commission IV of the Indonesian House of Representatives Panggah Susanto stated that his party is pushing for increased domestic palm oil productivity to support mandatory B40 policies, as a strategic step to build energy security, as well as reduce fuel imports.

"The mandatory B40 policy has been a strategic step to reduce dependence on diesel type oil imports so far, we have abundant palm oil resources, so we must maximize its management and utilization to increase the resilience and energy independence of the nation which is the President's dream," he said in Jakarta, quoted by Antara, Wednesday, June 25.

The government's policy regarding the mixing of biodiesel types of biodiesel fuel from 35 percent to 40 percent in diesel fuel is declared valid since January 1, 2025 through the Decree of the Minister of Energy and Mineral Resources No. 341.K/EK.01/MEM.E/2024 concerning the Utilization of Biodiesel Types of Fuel as a Mixture of Diesel Oil Types of Fuel in Financing by the Palm Oil Plantation Fund Management Agency of 40 percent.

Panggah explained that the mandatory B40 program in 2025, will continue to B50 in 2026, and other use of renewable energy is very relevant in anticipation of the global war escalation that could trigger an energy crisis.

"The mandatory B35 policy to B40 and other utilization of renewable energy are very relevant in connection with increasingly uncertain global geopolitical conditions with the escalation of war in various regions of the world that can trigger an energy crisis," he said.

This mandatory policy, he said, requires the supply of crude palm oil (CPO) as a raw material for biodiesel for the B40 program, which is estimated at 15.6 million kiloliters per year.

Therefore, efforts are needed to encourage increased productivity of palm oil, so as to maintain stability in supply availability for mandatory program needs and food needs for cooking oil for public consumption.

"We must encourage increased palm productivity so that the large need for the mandatory B40 program does not interfere with the community's need for cooking oil consumption from palm oil and other industrial raw materials needs, so that prices remain stable and not disrupted due to biodiesel needs," he said.

He conveyed that this program requires synergy and integration between sectors that are institutionally responsible, namely the Ministry of Agriculture on the upstream side, and the Ministry of Energy and Mineral Resources on the downstream side.

Commission IV has a scope of duties in agriculture, food, maritime, and forestry.