Indonesia is expanding oil palm plantations to meet demand for biofuels

Published Nov 1, 2024

Tridge summary

Indonesia's Ministry of Agriculture is planning to increase the area of oil palm cultivation to boost palm oil production for making biofuel, specifically for B50. This strategy is swifter than replanting, which can take up to three years. The country's palm oil consumption has risen following the implementation of the B35 biodiesel mandate, and by January 2025, the biodiesel content in fuel is expected to rise to B40. Currently, Indonesia has 16.8 million hectares of oil palm plantations and is seeking to enhance oil production through efficient land use.

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Original content

Indonesia's Ministry of Agriculture announces plans to increase the area of oil palm cultivation to increase the production of palm oil, which will be used to produce biofuel for B50. Expanding the area is a faster solution than replanting, which can take up to three years. Palm oil consumption in the country increased after the introduction of the B35 biodiesel mandate. By January 2025, the country's authorities plan to increase the share of biodiesel in fuel to B40, and have already begun preparations for the introduction of B50. Currently, the area of oil palm plantations in Indonesia is 16.8 million ...

Source: Graintrade