Indonesia is expanding oil palm plantations to meet demand for biofuels

Indonesia's Ministry of Agriculture announces plans to increase the area of oil palm cultivation to increase the production of palm oil, which will be used to produce biofuel for B50.

Expanding the area is a faster solution than replanting, which can take up to three years.

Palm oil consumption in the country has increased since the introduction of the B35 biodiesel mandate. By January 2025, the country's authorities plan to increase the share of biodiesel in fuel to B40, and have already begun preparations for the introduction of B50.

Currently, the area of oil palm plantations in Indonesia is 16.8 million hectares, and it is necessary to increase oil production by optimizing land use.

According to the Indonesian Association of Palm Oil Producers, its production in the country in 2023 reached 50.07 million tons.