Palm Oil-Based Bioenergy Development Holds Promising Prospects, Says Aspebindo

The Indonesian Energy, Mineral, and Coal Suppliers Association (Aspebindo) has stated that the development of bioenergy from palm oil holds very promising prospects. Aspebindo Deputy Chairman M Hadi Nainggolan explained that besides the abundant availability of raw materials, palm oil utilisation is supported by its sustainability aspects, as the crop is renewable with relatively stable year-round production. “Palm oil will become a source of bioenergy strength, supported by 16.8 million hectares of plantations,” he said in a statement in Jakarta on Sunday. He noted that every part of the palm oil plant has potential for bioenergy development, such as using crude palm oil (CPO) as biodiesel feedstock, while palm oil biomass like empty fruit bunches, shells, and trunks can serve as renewable energy sources. Currently, Indonesia’s palm oil plantations cover 16.8 million hectares with a biomass production potential reaching 272 million tonnes per year. “So, our palm oil can become a pillar for national energy strength. Indonesia could become the world’s number one country producing energy based on biological wealth,” he said. Hadi added that developing palm oil-based bioenergy will positively impact Indonesia by reducing dependence on fossil fuel imports, lowering greenhouse gas emissions, mitigating global warming, and improving the national oil and gas trade balance. Data from the Ministry of Energy and Mineral Resources shows that the biodiesel programme implementation from 2015 to 2025 has generated foreign exchange savings of Rp722.9 trillion and created added value of Rp114.7 trillion through CPO processing into biodiesel. The programme has also supported the absorption of up to 10.9 million workers in the palm oil sector and contributed to reducing greenhouse gas emissions by 228.41 million tonnes of CO₂. One effort to optimise palm oil’s potential in bioenergy development is being carried out by the Plantation Fund Management Agency (BPDP) through the Indonesian Palm Oil Research Week (PERISAI) programme. This programme encourages the emergence of various research and innovations that provide added value, including in the renewable energy sector. Bioenergy innovation demonstrates that palm oil has great potential as an environmentally friendly future energy source while increasing added value for the national palm oil commodity. Founder and Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), Tungkot Sipayung, said that developing palm oil-based bioenergy will have various positive economic, social, and environmental impacts. Diversifying palm oil utilisation into bioenergy will expand the market for fresh fruit bunches (TBS) produced by farmers, so they no longer depend solely on demand from the cooking oil industry. He revealed that the palm oil-based bioenergy market in Indonesia has now surpassed the cooking oil market, thereby contributing to the stability of TBS prices at the farmer level and increasing their income. Tungkot assessed that developing palm oil-based bioenergy is also part of the solution in facing the challenges of global warming and climate change. According to him, oil palm plants can absorb carbon from the atmosphere through photosynthesis, thus contributing to reducing carbon emission concentrations. Furthermore, palm oil bioenergy can replace fossil energy, which is the world’s largest emission contributor, so that overall it will be able to drastically reduce global emissions.