Coordinating Minister for Economic Affairs to Explain Government’s Commitment on the Sustainable Palm Oil Industry
On August 18, Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that with 58% share of the world’s palm oil market, Indonesia should have become the price leader instead of the price taker. Minister Airlangga said that the national palm oil industry has contributed to poverty alleviation and job creation for more than 16 million workers. Therefore, the palm oil industry is a strategic sector for the community's economy that needs to be monitored by the government and society.
The minister claimed that the Indonesian government would continue to develop policies that support domestic demand for palm products, including biodiesel (B30) as an alternative fuel to reduce dependence on fossil fuels. The B30 program reduced greenhouse gas (GHG) emissions for around 23.3 million tons of carbon dioxide (CO2) in 2020. This year, the government is committed to supporting the B30 program to stabilize crude palm oil prices. With a distribution of 9.2 million kiloliters, the said commitment can save US$ 8 billion in national reserve assets as a result of the reduction in diesel imports. The government also promised to replant 180 thousand hectares of oil palm plantations owned by smallholders.
Furthermore, The Indonesian government and palm oil stakeholders are now working to increase the acceptance of Indonesian palm oil with the Indonesian Sustainable Palm Oil (ISPO) certification following the discrimination against Indonesian palm oil.
