Palm oil and bioenergy in Indonesia

Indonesia has abundant natural resources, the most prominent of which is oil palm, which produces versatile palm oil, one of the main vegetable oils that dominates the global market.

Unfortunately, many people still associate it only with frying oil, when in fact it is a versatile vegetable oil that can be used for a variety of purposes both in homes and in industries. In addition to its traditional role as a food source, palm oil is also used as a raw material to produce bioenergy, which is renewable, sustainable and environmentally friendly.

In fact, many countries around the world rely on palm oil as a renewable energy source. In Indonesia, palm oil is processed to produce fatty acid methyl esters (FAME), which are used as a mixing material to produce biofuels that can replace gasoline and diesel derived from fossil fuels.

Palm oil is not just cooking oil

Palm oil can be used as a raw material for the production of many other products:

• Food source: Such as margarine and chocolate (through oily foods - Oleofood).
• Beauty and hygiene products: (through the oleochemical industries).
• Renewable energy sources: Such as biodiesel and biojet fuel (Bioavtur) (through biofuels).

This is part of the integrated manufacturing process of palm oil, which means processing raw palm oil into a variety of highly economically valuable derivative products that are used in daily life.

Why is palm oil biofuel important?

✅ More environmentally friendly
Biofuel is extracted from processed palm oil from the fresh fruit clusters of palm trees. It is easy to degrade and produces lower emissions compared to gasoline and fossil diesel.

♻️ renewable energy
If oil palm is grown sustainably, the biofuel extracted from it can be continuously replenished without depleting natural resources.

💪 Reducing fossil fuel imports
Thanks to biofuels, Indonesia can reduce its dependence on imported diesel fuel and enhance its sovereignty over national energy.

👨 ‍ 🌾 Stimulating the popular economy
The palm oil-based biofuel industry creates new job opportunities and improves the standard of living of palm farmers in various regions of Indonesia.

Indonesia's Biofuel Industry Latest Facts (2025)

• The national production capacity of biodiesel is currently 19.6 million kL per year, a significant increase compared to 12.5 million kL in 2018.
• Total biodiesel production in 2024 was around 13 billion liters and is expected to increase in 2025 in line with the government's plan to expand the mandatory biodiesel program.
• Since the beginning of 2025, Indonesia has officially started implementing the B40 program (mixing 40% biodiesel with 60% fossil diesel), and the government is preparing to implement the B50 program (50% biodiesel and 50% fossil diesel) in early 2026!
• More than 14 million tons of crude palm oil (CPO) has been allocated to meet energy needs.
• Bioethanol (based on molasses and cassava) has been developed although still on a limited scale, with a combined production capacity of approximately 350 million liters.

Biofuel products as the future of palm oil

Indonesia has also developed various types of green energy based on palm oil, such as:

• Green diesel, green gasoline, biofuel for aircraft (Bio Jet Fuel)
• Hydrogenated vegetable oil (HVO)
• Biofuel extracted from biomass from agricultural waste, cellulose, microalgae, and lignin.

Thanks to the latest technology, all of these natural materials and waste can be processed into clean energy with significantly lower carbon emissions compared to fossil fuels.

Palm oil and its oil are versatile

Palm and oil can be processed to produce food, beauty products, and renewable energy sources, which can be maximized to achieve energy self-sufficiency in Indonesia.

In light of the global climate crisis and the urgent need for clean energy, oil palm should be seen as a global solution rather than an enemy. It should be adopted as a partner to achieve a better, greener and sustainable future.

It is time to look at palm oil from the point of view of its potential and not through some stereotypes promoted by some parties.

🌱 Let's support the sustainable use of palm oil as a future energy source for Indonesia and the world.

Source: gapki