Jakarta. The Indonesian Palm Oil Association, or Gapki, said on Wednesday that palm oil-based renewable energy can help resolve the energy crunch that many countries are facing.

“With the energy crisis now happening in some parts of the world, palm oil-based renewable energy will be a solution or an alternative. This will make palm oil become a significant industry in the energy industry,” Gapki chairman Joko Supriyono told the annual Indonesian Palm Oil Conference (IPOC) on Wednesday.

According to Joko, 2021 has been a great year for the palm oil industry.

The average price of crude palm oil (CPO) has surpassed $1,000 per metric ton throughout the year. As countries head for economic recovery, vegetable oil —including palm oil— will see a rise in demand.

“Demand for palm oil is expected to continue to increase, especially during the energy crisis in a number of countries," Joko said.

"Biodiesel will be an alternative to overcome this energy crisis. The question is, will this price continue in 2022?” he added.

Joko’s remarks alluded to the shortage of energy hitting major economies worldwide, including the United Kingdom and China. Bloomberg also reported over the weekend that winter could worsen the energy crisis in Europe.