The Jakarta Post
The Indonesian Palm Oil Producers Association (Gapki) and Lion Air Group signed an agreement on Tuesday to carry out joint research to develop bio aviation turbine fuel (bioavtur).
“This agreement is opening the way to reduce the dependency of aviation companies on fossil fuels and to absorb palm oil produced in this country,” said Lion Air Group founder Rusdi Kirana, who was also Indonesian ambassador to Malaysia, after attending the signing ceremony in Jakarta on Tuesday.
Transportation Minister Budi Karya Sumadi also attended the signing ceremony.
Rusdi said the use of bioavtur would not only help boost the economy but would also help improve the welfare of oil palm farmers.
Meanwhile, Gapki advisory council member Franky O. Widjaja welcomed the agreement, saying that the use of bioavtur would help develop the downstream palm oil business.
The government plans to use 3 percent bioavtur this year.
As the largest palm-oil producing country, Indonesia produced 36.5 million tons of crude palm oil (CPO) in 2017, while Malaysia, the second-largest producing country, produced 19.9 million tons. (bbn)