Ministry of Agriculture: No tug of war on CPO Supply for Biodiesel and Cooking Oil

The Ministry of Agriculture (Kementan) emphasized that there was no tug of war on the supply of crude palm oil (CPO)
for cooking oil needs with the need for biodiesel. Based on data from the Ministry of Agriculture, in 2020, the supply of CPO for the food industry reached 8,428,000 tons and 7,226,000 tons for biodiesel. And 1,695,000 tons for the oleochemical industry. So the total demand for CPO for the domestic industry reaches 17,349,000 tons. Then, in 2021, the supply of CPO for the food industry will reach 8,249,000 tons and 6,561,000 tons for biodiesel. And 1,946,000 tons for the oleochemical industry. So the total demand for CPO for the domestic industry reaches 16,756,000 tons. “From the data above, there is no attraction between the need for biodiesel and cooking oil. This is because national CPO production is quite abundant (49.71 million tons in 2021), while the need for cooking oil (food) and biodiesel is only around 14.81 million tons," said Director of Plantation Processing and Marketing of the Ministry of Agriculture, Dedi Junaedi. CPO governance in the upstream/on farm sector is encouraged to implement sustainable oil palm plantations, with the aim of increasing the acceptability and competitiveness of Indonesian oil palm plantation products in national and international markets and increasing efforts to accelerate the reduction of greenhouse gas emissions. Regarding the cooking oil problem, Dedi said, the Ministry of Agriculture encourages the increase in palm oil productivity, especially smallholder plantations so that production costs are more efficient and their competitiveness increases (at least 6 tons of CPO/hectare/year). This was taken through the People's Palm Oil Replanting Program (PSR).

|•SOURCE•| Articles :KONTAN | Image :KOMPAS |

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