Minister: Palm Oil Downstreaming Strengthens Energy Security and Farmer Welfare
Agriculture Minister Andi Amran Sulaiman has emphasised that downstreaming the palm oil industry through the implementation of B50 biodiesel will strengthen national energy security, increase value added, and promote the welfare of Indonesian farmers. “The implementation of B50 is a strategic momentum to strengthen the downstreaming of the national palm oil industry,” he said in a confirmed statement in Jakarta on Friday.
According to Amran, the increased use of palm oil as a biodiesel feedstock will expand the domestic market, increase the commodity’s value added, and strengthen farmer welfare. He noted that the performance of the national palm oil industry is showing a positive trend. Crude palm oil (CPO) production throughout 2025 reached 51.66 million tonnes, an increase of 7.3 percent from 48.16 million tonnes in 2024.
At the same time, exports increased from 29.53 million tonnes to 32.34 million tonnes, in line with the greater use of palm oil as a biodiesel feedstock. “The B50 programme will further strengthen national palm oil downstreaming. Our palm oil production continues to increase, exports are also growing, while domestic utilisation through biodiesel is getting bigger,” he said. The Minister stated that this means the value added of the palm oil commodity is getting higher and its economic benefits are increasingly being felt by farmers.
Mentan revealed that the implementation of B50 will expand the domestic market for palm oil, increase demand for fresh fruit bunches, strengthen prices at the farmer level, and become a driver of economic growth in plantation centres. The Ministry of Agriculture will continue to increase palm oil productivity through improved cultivation, the use of superior seeds, smallholder palm oil replanting, and strengthening downstreaming so that Indonesia is not only the world’s largest producer but is also able to provide significant value added for farmer welfare and the national economy.
With stronger support from the agricultural sector, Amran continued, Indonesia is not only able to maintain national food security but also accelerate the realisation of sustainable energy self-sufficiency, while improving farmer welfare and people’s prosperity. President Prabowo Subianto officially launched the mandatory B50 biodiesel programme in Karawang, West Java, on Thursday (9/7). The launch of B50 marks an important milestone in strengthening national energy self-sufficiency while increasing the value added of palm oil commodities, which has a direct impact on farmer welfare.
The Ministry of Agriculture considers the launch of B50 to be an important momentum in strengthening the synergy between food self-sufficiency and energy self-sufficiency. President Prabowo stressed that the success of development must be measured by the improvement of people’s welfare, especially farmers as the front line of national food security. The President said the launch of B50 is real proof that Indonesia is able to manage its own natural resources for the greatest prosperity of the people. According to the President, the survival of a nation is determined by its ability to meet three strategic needs: food, energy, and water. Therefore, Indonesia’s success in achieving food self-sufficiency is an important foundation for energy independence. “We have proven that we can secure and produce food for our people. We are food self-sufficient. From a four-year target, we have succeeded in one year,” the President asserted.