The Indonesian Palm Oil Association (GAPKI) says that Indonesia needs to have extended oil palm plantations to meet the needs of the mandatory program of mixing fuel oil (BBM) and biofuel (BBN) by 50 percent or B50 up to B100.
Extensification of oil palm plantations is the expansion of agricultural areas into previously unused areas to increase production from the resulting products.
Edi Suhardi, Head of GAPKI’s Positive Campaign Division, said that palm oil exports have begun to be disrupted when they have to fulfill the B40 mandate or obligation. Therefore, palm oil supply will not be sufficient if it has to fulfill the supply for B50.
“Palm oil production in Indonesia has stagnated at around 50 million tons per year. If it is increased to B50, it can only be done through extensification,” Edi said in a discussion in Jakarta on Wednesday, February 5, 2025.
Edi said that increasing palm oil supply would take a long time if it was only done by increasing plant productivity or intensification.
To increase production growth using the intensification method, it takes at least five to 10 years to achieve maximum results.
“Because oil palm is not like rice or corn which can bear fruit in a few months. With oil palm, it takes at least 5 years before productivity increases,” he said.
Therefore, oil palm land extension is needed in order to achieve the B100 target in 2045, he added.
“Because B100 requires palm oil production of up to 100 million tons per year or twice the current amount,” he concluded.
