The Indonesian government’s ambitious policy of increasing the biodiesel mixture to 50% will accelerate the expansion of new palm oil plantations. Moreover, in the Draft Law on New and Renewable Energy (RUU EBT), biomass is one of the renewable energy sources that is promoted and given many conveniences in the future energy transition process. Palm oil as the primary raw material for biodiesel production has also driven the increase in national palm oil demand, including its use for domestic food needs and industry, which has also increased. The use of CPO levy funds for biodiesel also supports the biodiesel policy. From 2015 to 2022, the amount of levy funds used for biodiesel has reached IDR 144.7 trillion.
The latest report by Satya Bumi, Greenpeace, SPKS, and Traction Energy Asia, “Palm Oil and Biodiesel: Trends, Potential Deforestation, and Efforts to Protect Natural Forests,” reveals the potential for deforestation that will occur if the government enforces the B50 ambition in 2025.
