Indonesia’s new Palm Oil challenge

In a significant shift, Indonesia’s palm oil consumption patterns have altered, with biodiesel usage surpassing food production for the first time. According to the Indonesian Palm Oil Association (GAPKI), 46% of the 23.2 million tonnes produced last year was allocated to biodiesel, while 44% was used in food production, and the remaining 10% for oleochemicals.

The surge in domestic biodiesel demand raises concerns about the potential expansion of oil palm plantations, which could lead to further deforestation. However, alternative strategies such as increasing refinery productivity or utilizing degraded lands present viable solutions that could mitigate environmental impact.

Sustainability remains a pivotal aspect of the palm oil industry. Adherence to the Indonesian Sustainable Palm Oil (ISPO) certification is mandatory, but the pursuit of the voluntary Roundtable on Sustainable Palm Oil (RSPO) certificates is equally crucial. These certifications are instrumental in ensuring that palm oil production does not come at the cost of environmental degradation, thereby aligning with global sustainability goals.

As Indonesia grapples with these challenges, the balance between economic growth, energy needs, and environmental conservation becomes ever more delicate. The country’s decisions will not only affect its landscapes and ecosystems but also have far-reaching implications for the global palm oil market and sustainability efforts.

Source Linkhttps://asianews.network/increasing-biodiesel-use-may-aggravate-environmental-risks/