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Jakarta Post

Palm oil-based green fuel program unlikely to empower palm oil farmers: smallholders

The Jakarta Post Image
The then Energy and Mineral Resources Minister Ignasius Jonan (second right) fills a car with 30 percent biodiesel (B30) fuel during the launch of the road test for the palm oil-based biofuel in Jakarta on on June 13, 2019(Antara/-)
Made Anthony Iswara
Jakarta   ●   Mon, February 17, 2020

Oil palm farmers have raised doubts that the palm oil-based “green fuel” scheme laid out in the government's recent five-year plan will benefit them, taking past biodiesel developments as cautionary tales.

Palm Oil Smallholders Union (SPKS) secretary-general Mansuetus Darto said that the scheme could risk repeating mistakes of keeping farmers out of the supply chain just like previous biodiesel programs.

As an example, he said agribusiness giant Wilmar Group "did not involve" smallholders in producing its assigned 2.5 million liters of the 30-percent blended biodiesel (B30) quota. Instead, around 162 companies are supplying the crude palm oil (CPO) for the group’s B30 production.

"It will be really regrettable if we develop [...] the palm oil-based green fuel where only big corporations can benefit," said Mansuetu...

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