Bright future for biodiesel in Indonesia

As Indonesia is today the world’s largest producer of crude palm oil (CPO) — a desirable feedstock for biodiesel production — it has the potential to grow into a world biodiesel leader and a model for plantation sustainability.

Biodiesel has the potential to become a significant industry sector in Indonesia, supported by two of its most valuable assets: its oil palm plantations, and more importantly, its people. Indonesia currently produces approximately 20 million tons of CPO per year from 7 million hectares of oil palm plantation, of which approximately 80 percent is exported.
In terms of revenue, CPO exports provide Indonesia with its biggest non-petroleum source of export income, and this is expected to grow in the future.

Beyond revenue generation, oil palm plantations also currently provide a livelihood for more than three million Indonesian families. This, too, is also expected to grow in the future.

By 2015, the area of Indonesian oil palm is expected to increase to 10 million hectares, of which three million hectares have already been approved.

Studies have shown that the total amount of land that is suitable for growing oil palms, but which has not yet been approved, may be as high as 44 million hectares.

Using conservative yield estimates, this area of oil palm plantation would produce 145 billion litres per year of biodiesel, or 10 percent of current fossil diesel demand. Beyond this significant biodiesel potential is the possibility of providing income to an additional 19 million Indonesian families.

While these 44 million hectares are considered suitable for oil palm plantations, it is imperative to consider the long-term environmental consequences — including the overall, or life-cycle carbon dioxide emissions — before pursuing any development.

Jakarta Post