{
    "success": true,
    "data": {
        "id": 1733688,
        "msgid": "experts-assess-upstream-palm-oil-improvements-as-crucial-for-b50-biodiesel-mandate-1778572365",
        "date": "2026-05-12 13:51:16",
        "title": "Experts Assess Upstream Palm Oil Improvements as Crucial for B50 Biodiesel Mandate",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Energy",
        "summary": "Zainal Arifin, Director of the Centre for Legal Studies and Advocacy on Natural Resources (Pustaka Alam), emphasises that enhancing the upstream palm oil sector is essential for the successful implementation of Indonesia's B50 biodiesel mandate, a key energy security strategy. He highlights the need for inter-ministerial policy alignment, accelerated replanting of smallholder palm plantations under the PSR programme, and flexible blending to address supply uncertainties, productivity declines in ageing trees, and legal hurdles like land rights. These reforms are vital to ensure a robust supply foundation for B50, balancing energy goals with investment stability and food security needs.",
        "content": "<p>B50 is a strategic agenda for energy security. However, this policy\nmust be aligned across ministries and institutions. The energy sector\nshould not push for B50 while other policies create uncertainty for the\npalm oil industry.<\/p>\n<p>Jakarta (ANTARA) - Zainal Arifin, Director of the Centre for Legal\nStudies and Advocacy on Natural Resources (Pustaka Alam), assesses that\nimprovements in the upstream sector of the palm oil industry are very\nimportant to ensure that Indonesia\u2019s planned B50 biodiesel mandate can\nproceed smoothly.<\/p>\n<p>\u201cB50 is a strategic agenda for energy security. However, this policy\nmust be aligned across ministries and institutions. The energy sector\nshould not push for B50 while other policies create uncertainty for the\npalm oil industry,\u201d Zainal said in his statement in Jakarta on\nTuesday.<\/p>\n<p>\u201cB50 is a major national strategy. However, its success is highly\ndetermined by the government\u2019s willingness to reform the upstream palm\noil sector first,\u201d he added.<\/p>\n<p>Furthermore, he views the B50 programme not merely as an energy\npolicy, but as a cross-sectoral agenda concerning investment stability,\npalm oil productivity, and legal certainty for business actors.<\/p>\n<p>However, Zainal stated that productivity remains a key focus amid the\nvast area of palm oil plantations in Indonesia.<\/p>\n<p>\u201cMany smallholder palm oil gardens and some company plantations have\nentered old age and their productivity is declining,\u201d he said.<\/p>\n<p>He emphasised that accelerating the Smallholder Palm Oil Rejuvenation\nProgramme (PSR) is the most urgent policy. Currently, the area of\nsmallholder palm oil plantations reaches around 6.8 million hectares,\nwith at least 4.8 million hectares requiring replanting.<\/p>\n<p>The main obstacles to PSR, he continued, still revolve around land\nlegality issues, forest area status, access to financing, and concerns\nfrom authorities about legal risks.<\/p>\n<p>\u201cThe President needs to make resolving PSR a national priority.\nWithout rejuvenation, it is impossible for B50 to have a strong supply\nfoundation,\u201d he said.<\/p>\n<p>Zainal also urged the government to implement a flexible blending\nconcept in the B50 rollout, where the biodiesel blend ratio is not\ntreated as a rigid figure but adjusted to the CPO supply conditions,\nworld oil prices, food needs, and the country\u2019s fiscal capacity.<\/p>\n<p>In addition to productivity, legal certainty regarding Business Use\nRights (HGU) is considered a crucial factor.<\/p>\n<p>\u201cPalm oil replanting is a long-term investment with a crop cycle of\nup to 25 years, so business actors need certainty on land permit\nextensions,\u201d Zainal said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/experts-assess-upstream-palm-oil-improvements-as-crucial-for-b50-biodiesel-mandate-1778572365",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}