Malaysian palm kernel oil prices look set to climb up out of a trough as industrial buyers flock back to the soap and detergent ingredient after it regained a steep discount to rival oils. (Antara Photo/Budi Candra Setya)
Indonesians Should Be Proud of B20 Biodiesel Program: Minister
BY :RATRI M. SINIWI
NOVEMBER 25, 2016
Nusa Dua. As policy makers, industry players, and experts gather in Nusa Dua, Bali, for the world’s largest palm oil conference, palm biodiesel has been cited as a promising commodity for Indonesia for the upcoming years.
With the government’s B20 program, launched earlier this year, the Coordinating Ministry of Economic Affairs highlighted biodiesel as a solution to harmonizing markets, society and state.
According to Deputy Minister for Food and Agriculture at the ministry Musdhalifah Machmud, biodiesel could stabilize palm oil prices while also bringing the industry in line with the government's commitment to the ratification of the Paris Agreement.
“Biodiesel helps create a demand for palm oil, which in turn helps to increase prices,” Musdhalifah said on Thursday (24/11). “The multiplier effect [of palm oil demand] is huge, job provisions, food and energy security, national income and we are also providing a solution to climate change mitigation.”
While implementation of biodiesel is a challenge, she said, Indonesia appears to be the only country which has executed it well.
Cornell University economics expert Iwan Jaya Azis said biodiesel outlook is brighter than palm oil, due to expanding opportunities across the globe.
“The prospect is good, as the US is now looking for fossil fuel substitutes through biodiesel, as well as parts of Europe, ” Iwan said.
He added that Indonesia should not shy away from exporting biodiesel to these regions.