At a press conference on the 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) in Jakarta on Friday, the minister said that at present, the government has agreed to increase the volume of national palm oil production for the B40 quota.
"For B40 biodiesel, we are committed to starting on January 1st, and we have decided to increase the volume for the quota," he informed.
Hartarto said that Indonesia has decreased CO2 by about 32 million tons through the B35 program, while via the B40 program, Indonesia is hoping to reduce CO2 emissions by more than 40 million tons.
“This is Indonesia’s contribution to the world,” he added.
On the same occasion, Malaysian Minister of Agriculture and Commodities Datuk Seri Johari Abdul Ghani lauded Indonesia's B40 program, saying it can contribute to reducing global carbon emissions.
Ghani said that palm oil will remain a commodity that is needed by the world.
Therefore, Indonesia and Malaysia, as the main producers of palm oil, have an important role in ensuring a more sustainable palm oil industry.
"The biodiesel production must be accepted by the world through palm oil because biodiesel has decreased a lot of carbon emissions that apply in the energy sector," he added.
Meanwhile, President Director of the Palm Oil Plantation Fund Management Agency (BPDPKS) Eddy Abdurachman said that the mandatory biodiesel program has been proven to maintain the stability of palm oil prices while supporting the government's downstreaming program.
According to Abdurachman, the program is an initiative to create a domestic palm oil market since the implementation of B40 will absorb a significant amount of palm oil as a basic material for mineral fuel (BBM).
"With such a large amount of absorption of CPO and its derivative products for feedstock or raw materials for biodiesel, this can be used as a tool or as an instrument to maintain the stability of CPO prices, especially domestic CPO prices," he explained.
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Translator: Bayu Saputra, Cindy Frishanti Octavia
Editor: Rahmad Nasution
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