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MEDAN – One of the government's strategies to achieve energy self-sufficiency is reducing diesel imports by increasing biodiesel production. This approach stabilizes crude palm oil (CPO) absorption, thereby ensuring a more stable price for fresh fruit bunches (TBS).

"This is not just about energy self-sufficiency, but also about food security and economic resilience," said Usli Sarsi, Vice Chairman of the Indonesian Employers’ Association (APINDO) North Sumatra, for the Agriculture and Plantation sector, in a phone interview with Tribun Medan recently.

Economic resilience must be addressed comprehensively, from the grassroots level (farmers) to CPO processing entrepreneurs. Proper domestic management can reduce dependence on diesel imports.

"As we know, biodiesel is a sustainable green energy source," said Usli, who is also the President Director of PT Mahkota Group Tbk.

Thus, the discussion is not limited to energy self-sufficiency, food security, and economic resilience but also extends to addressing environmental challenges. This aligns with Indonesia’s commitment to the Paris Agreement, aiming for net-zero emissions by 2060.

"If all stakeholders work together, we can reduce carbon emissions annually, positioning Indonesia as a pioneer in environmental sustainability," he added.

Production Levels

Currently, 65% of CPO and its derivatives are produced for export, while the remainder is used domestically. With government policies continuously increasing the palm oil blend in diesel fuel, the domestic demand for CPO is expected to rise.

According to Usli, the key priority is increasing palm oil production to facilitate the B40 implementation this year and the future transitions to B50 and B60.

"Current production is around 47 million tons per year. The real issue, which is rarely discussed, is how we can further increase this output," he stated.

Indonesia still has large areas of land suitable for oil palm plantations.

However, expanding land is not the ideal solution, Usli emphasized, since Indonesia also needs land for agriculture, housing, industry, and other sectors. Instead, enhancing productivity on existing plantations should be prioritized while maintaining soil fertility through the use of organic and compost fertilizers—a topic often overlooked.

"So far, farmers have been heavily reliant on imported chemical fertilizers. By switching to compost fertilizers, we could reduce chemical fertilizer usage by up to 70%, and the raw materials for compost fertilizers are abundantly available," Usli concluded.

Source: medan.tribunnews.com