{
    "success": true,
    "data": {
        "id": 1675966,
        "msgid": "academics-say-biodiesel-programme-effectively-reduces-fuel-oil-imports-1776142254",
        "date": "2026-04-14 10:32:47",
        "title": "Academics say biodiesel programme effectively reduces fuel oil imports",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Energy",
        "summary": "Indonesian academics highlight the strategic role of the mandatory biodiesel policy in cutting reliance on diesel imports, potentially saving up to $8-10 billion in foreign exchange annually through abundant palm oil resources and mature processing technology. The programme, advancing from B1 to a targeted B50 by July 2026, has already reduced diesel imports by 3.3 million kilolitres in 2025 under B40 implementation, while saving Rp130.21 trillion in foreign exchange and cutting emissions by 38.88 million tonnes of CO2 equivalent. Experts emphasise the need for sustainable palm oil governance to prevent deforestation, balance food-energy trade-offs, and boost the overall economy by stabilising farmer prices and enhancing CPO value addition.",
        "content": "<p>Professor Rhenald Kasali from the Faculty of Economics and Business\nat the University of Indonesia (FEB UI) states that the mandatory\nbiodiesel policy plays a strategic role in reducing Indonesia\u2019s\ndependence on imports of petroleum fuel (BBM), particularly diesel.\nAccording to him, the mandatory biodiesel policy has great potential as\na substitute for diesel, especially supported by the abundant\navailability of palm oil raw materials domestically and the relative\nmaturity of processing technology. \u201cThe biodiesel programme is indeed\neffective in curbing diesel imports and improving the energy trade\nbalance through a significant reduction in diesel imports. The programme\ncan save foreign exchange of up to $8-10 billion per year,\u201d he said in\nhis statement in Jakarta on Tuesday. Regarding this, he hopes for good\ngovernance of the palm oil industry to support the sustainability of the\nbiodiesel programme, including efforts to prevent deforestation,\npreserve the environment, and respect the rights of indigenous\ncommunities. He also hopes that the biodiesel programme can minimise the\npotential for conflict between food and energy needs (trade-off\nfuel-food). \u201cIt should be remembered that palm oil is not a homogeneous\nproduct for energy. Increasing the allocation of crude palm oil (CPO) to\nenergy can reduce food supplies, triggering difficulties for household\nsubstitutes, namely shortages and rising prices of cooking oil,\u201d he\nsaid. Meanwhile, Executive Director of the Palm Oil Agribusiness\nStrategic Policy Institute (PASPI) Tungkot Sipayung added that the\ndevelopment of bioenergy through the mandatory biodiesel policy\ncontributes significantly to reducing imports of fossil-based BBM.\nIndonesia has consistently developed the mandatory biodiesel programme\nfrom B1 to B50, targeted for July 2026, he added, and this programme can\nreduce dependence on diesel imports by around 50 percent. The\nimplementation of B40 biodiesel, according to him, has reduced diesel\nimports from 8.3 million kilolitres in 2024 to 5 million kilolitres in\n2025, or a reduction of 3.3 million kilolitres. Tungkot stated that in\nterms of foreign exchange import savings, the 2025 biodiesel policy has\nsucceeded in saving Rp130.21 trillion and reducing emissions by 38.88\nmillion tonnes of CO2 equivalent, while the B40 programme increases the\nadded value of CPO to biodiesel by Rp20.43 trillion. The implementation\nof the mandatory policy is carried out gradually in Indonesia from B1 to\nB25 in 2008, continuing until reaching B50 through support from palm oil\nfunds from export levies managed by the Plantation Fund Management\nAgency (BPDP). \u201cOne of our current successes is substituting imported\ndiesel with palm biodiesel,\u201d he said. According to him, one of\nIndonesia\u2019s goals in developing palm bioenergy is to improve the\nenvironment; the use of biodiesel is considered more environmentally\nfriendly because it produces lower greenhouse gas emissions compared to\nfossil fuels. He explained that global fossil energy consumption is the\nmain contributor to emissions, around 70-80 percent, which triggers\nglobal warming and global climate change. \u201cBy using palm bioenergy,\nIndonesia has contributed to reducing global emissions. This means that\nthe use of palm bioenergy also improves the living environment and does\nnot damage the environment,\u201d he said. Tungkot stated that palm bioenergy\nis an important part of Indonesia\u2019s aspiration to achieve energy\nself-sufficiency and independence in the future, so it will no longer\ndepend on fossil BBM imports. The increase in the utilisation of\nbiodiesel domestically will have a broad impact not only on the energy\nsector but also on the economy as a whole, he added; this policy\nprovides positive effects for the palm oil industry. Demand for CPO,\naccording to him, will increase, thus helping to maintain fresh fruit\nbunch (TBS) prices at the farmer level. \u201cTherefore, palm plantation\nproductivity must continue to be improved, and bioenergy processing\ntechnology must be continuously refined to achieve increasingly\nefficient technology,\u201d said Tungkot.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/academics-say-biodiesel-programme-effectively-reduces-fuel-oil-imports-1776142254",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}