JAKARTA, RAKYAT NEWS – The Indonesian Ministry of Agriculture (Kementan) is currently prioritizing the development of Crude Palm Oil (CPO) to support the biodiesel programs B35 and B40, rather than focusing on the 50% biodiesel (B50) blend slated for the coming year.

Minister of Agriculture, Andi Amran Sulaiman, stated on February 17, 2025, that the government has yet to discuss the readiness of CPO production to support the B50 biodiesel program. Instead, the immediate focus is on the successful implementation of the B40 program, which aims to increase the biodiesel blend from 35% to 40%.

Minister Amran explained that the B40 program is already in progress, and the government will only begin planning for B50 once the outcomes of B40 are fully assessed. “We will gradually move towards B50, depending on how B40 progresses,” he said. While B40 is already underway, discussions regarding the necessary increases in CPO production to support the B50 initiative are still in the planning stages.

The government is hopeful that CPO production will surpass last year’s output, which will be crucial in supporting these biodiesel initiatives. However, there are no specific production targets yet set for the upcoming B50 program. The Ministry remains committed to enhancing the domestic CPO supply, but the timeline and capacity for this increase are still under review.

The Indonesian Palm Oil Producers Association (Gapki) has expressed concern regarding the potential impact of the B50 program on both inflation and the global supply of CPO. Eddy Martono, the chairman of Gapki, pointed out that a shift to B50 could lead to reduced CPO exports, which would subsequently lower global CPO supplies and could increase domestic inflation, especially concerning the price of cooking oil.

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