Indonesia is ramping up oil palm cultivation to boost crude palm oil (CPO) output for a 50 percent biodiesel blend (biodiesel B50), the Agriculture Ministry announced on Monday.
According to the media report, Acting Director General of Plantations Heru Tri Widarto noted that intensification is a quicker option than replanting, which can take up to three years. This approach can be applied not only on smallholder farms but also on private plantations.
With the country’s oil palm plantation area covering 16.8 million hectares, there is significant potential for increased production through better land utilization.
The ministry is currently conducting a study to align CPO demand with food, energy, and export requirements, which will inform future production targets.
The Indonesian Palm Oil Producers Association reported that CPO production reached 50.07 million tons in 2023, with rising domestic consumption attributed to the B35 biodiesel policy. Plans are underway to increase the biodiesel blend to B40 by January 2025, with B50 implementation also in preparation.
