Indonesia Needs 60 Million Tons Palm Oil for B100 Mandatory

Vice Chairman of the Indonesian Palm Oil Association (Gapki) Togar Sitanggang said Indonesia needs to increase palm oil production in order to implement B100 mandatory program. The program is estimated to absorb at least 60 million tons palm oil per year. Currently, total production of palm oil, including palm kernel oil,  in Indonesia reached 42 million tons per year from about 15 million hectares plantation. “We produce 42 million tons per year. Whether the number is enough or not, it depends on how we use it. If we use in processed food only, I think it might be enough. But if we use as source of energy, the number is not enough. If we adopt B100, we need more production,” Togar said in an interview with CNBC TV, Indonesia (19/11/2018). He added, Indonesia doesn’t need new lands to increase production up to 60 million tons per year because the total capacity is yet to be full. “Currently, we have 14-15 million hectares plantation. Let’s say every hectares could produce 4 million tons, then the production could reach 60 million tons. We can increase 15 million tons in 3-4 years to come without having to open new lands,” he said. Indonesia only needs to boost productivity on smallholders’ plantation to meet the demand. Currently, the government is implementing B20 mandatory to reduce diesel fuel import and to save foreign foreign-exchange reserves. Since 1 September 2018, government implement policy to expand B20 mandatory program to both Public Service Obligation (PSO) and non-PSO sector. ***