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Indonesia, world's largest producer of palm oil, to force manufacturers to use biofuel
The Associated Press , Jakarta | Thu, 07/10/2008 4:52 PM | Headlines
Indonesia, the world's largest producer of palm oil, plans to force manufacturers to use biofuels for some of their energy needs to reduce dependence on imported oil amid soaring global prices.
The government also wants to cut spending on fuel subsidies, which were put in place decades ago to protect the country's poorest but now account for almost half the budget.
Efita Legowo, a member of the Energy Ministry's biofuel team, said a decree would be issued in October stipulating that factories use palm oil and other cleaner burning fuel for 2.5 percent of their total needs.
The nation of 235 million people sees promoting the biofuel sector as a way of reducing dependence on foreign oil while alleviating poverty and creating jobs. But lawmakers worry it will
push up the price of palm oil, which is widely used for cooking by the poor.
Environmental groups also warn it will contribute to the destruction of forests in Indonesia's Kalimantan region, where massive oil palm plantations are being established to meet global
demand.
The new energy policy sets a target of making biofuels account for 5 percent of the energy mix by 2025. Some critics of a similar European Union plan say the push for the use of biofuels is a major factor in soaring food prices.
Together, Malaysia and Indonesia provide 87 percent of the world's palm oil. Nearly 15 million acres (about 6 million hectares) is covered by palm-oil plantations. (***)
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OLIVER JOMIA SOMIA (not verified) — Tue, 07/22/2008 - 8:34pm
Dear editor in chief, I'm a Cameroonian by nationality who got highly interested in your last article on oil production in yourcountry. Well congratulations for a well styled and expllicit ariccle. I happen to have come from one of he oil producing regions of Cameroon, with close to ten and above hecterrs of palm plantation. In essence, i , like most of my friends and brothers lack the notion on mordern palm oil production. At times we even lack the means to exploit our very rih plantations since our government places little or no interestin this sector. I will thus wish you could help me find a trainer, if possible a sponsore who can come to Cameroon for a joint venture in this sector. If there exits ny seminars on the producton off Palm oil in your country, please do letme know. While looking forward to hearing from you soon, accept God's blessings nd guidance in your daunting task.
Somia
Ayuna (not verified) — Thu, 07/10/2008 - 8:44pm
rather than using palm oil as biofuels, why not increasing R&D of oil refinery inside Indonesia itself? We are potentially rich, but lack of efforts are done in many things!