House Pushes to Boost Palm Oil Productivity to Support B40 Policy

KBRN, Jakarta: Indonesian House of Representatives Commission IV is urging an increase in domestic palm oil productivity to support the implementation of the B40 biodiesel mandate, a strategic measure aimed at strengthening national energy resilience and reducing reliance on fuel imports.

Commission IV Deputy Speaker Panggah Susanto said the B40 policy represents a crucial step in decreasing the country's dependency on imported diesel fuel.

“We have abundant palm oil resources, so we must maximize their management and utilization to realize the President’s vision for energy self-sufficiency,” he stated in Jakarta on Wednesday, June 25, 2025, as quoted by antaranews.com.

The government’s policy to increase the biodiesel blend from 35 percent to 40 percent in diesel fuel officially took effect on January 1, 2025, as outlined in Minister of Energy and Mineral Resources Decree No. 341.K/EK.01/MEM.E/2024. The policy mandates a 40 percent biodiesel mix, financed by the Palm Oil Plantation Fund Management Agency.

Panggah noted that the B40 program is set to be followed by a B50 mandate in 2026. He emphasized the importance of renewable energy use in light of escalating global geopolitical tensions, which could trigger an energy crisis.

“The shift from B35 to B40 and the broader use of renewable energy are highly relevant given the current global instability and ongoing conflicts around the world,” he said.

According to Panggah, the B40 policy requires an estimated 15.6 million kiloliters of crude palm oil (CPO) annually to supply the biodiesel program. As such, increasing palm oil productivity is essential to maintain supply stability for both the biodiesel mandate and public consumption needs such as cooking oil.

“We must enhance palm oil productivity so that the growing demand for biodiesel does not disrupt domestic needs for cooking oil and industrial raw materials. This will help keep prices stable and unaffected by biodiesel production demands,” he explained.

Panggah stressed the importance of inter-sectoral coordination, highlighting the need for synergy between upstream responsibilities under the Ministry of Agriculture and downstream implementation by the Ministry of Energy and Mineral Resources.

Commission IV oversees affairs related to agriculture, food, maritime affairs, and forestry. ***