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Biodiesel program: Government to revitalize 500,000 ha palm oil fields

Tempo - December 23, 2019

Ahmad Faiz Ibnu Sani, Jakarta – President Jokowi said that the palm oil field moratorium remains conclusive despite the government eyeing to achieve 100 percent diesel fuel and palm oil (B100). As a replacement, the government plans to revitalize 500,000 hectares of palm oil fields in the next three years.

This revitalization program initially should have progressed in the past two years, however, Jokowi promises that it will continue to be held due to the large Rp20 trillion 'palm funds' in place at the Indonesian Oil Palm Estate Fund (BPDP-KS).

"This [funds] is what we will use to replant and revitalize farmers' palm oil fields. Our goal is 500,000 hectares in the next three years," said the President in inaugurating the B30 implementation program in Jakarta today.

Rather than opening new fields, Jokowi urged palm oil field owners to increase their capacity per hectare each year.

"This means that it must be increased each hectare. If today produces 4 tons per hectare, think how that can be increased to 7 or 8 tons per hectare," the president asked.

According to Jokowi, 30-percent Biodiesel (B30) program can potentially save the government up to USD4.8 billion or roughly Rp63 trillion. The government plans to gradually improve to B40, B50, and B100.

Source: https://en.tempo.co/read/1286931/biodiesel-program-govt-to-revitalize-500000-ha-palm-oil-fields