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Sunflower Oil — FOB Black Sea
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NewsOils and Fats Sector Coverage

Indonesia Plans Palm Oil Estates In South Papua To Boost Biodiesel Output

Fats and oils processing
August 21, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Indonesia's Defence Ministry says the country plans to develop oil palm plantations in Boven Digoel regency, South Papua province, to strengthen economic resilience and energy independence.

The project supports a national strategy launched by President Prabowo Subianto to boost biodiesel production, cut fuel imports, and affirm Papua's strategic role in national stability and development.

Defence Minister Sjafrie Sjamsoeddin visited the proposed site on Sunday to conduct an aerial survey, accompanied by military officials, infrastructure advisers, executives from PT Agrinas Paima Nusantara, and the Governor of South Papua. The visit was also attended by Agriculture Minister Amran Sulaiman, Forestry Minister Raja Juli Antoni, and Public Works Minister Dody Hanggodo.

The Defence Ministry said: "The government reaffirms its commitment to national energy self-sufficiency while strengthening sovereignty from both a security and an economic perspective." It also highlighted the importance of synergy between various sectors, including defence, agriculture, forestry and energy, in achieving sustainable energy sovereignty.

The ministry added that the visit reflected the Indonesian government's intention to stabilise Papua and integrate this resource-rich region through defence-led infrastructure projects amid separatist tensions.

Meanwhile, the Defence Ministry reported that Minister Sjafrie and Finance Minister Sri Mulyani Indrawati also visited conflict-prone areas in Papua on Sunday, including Timika and Nduga, where they were briefed on the local security situation.

In a separate statement, the two ministers stressed the importance of aligning defence and fiscal strength to support national stability. They noted that "defence requires financial support to be realised, and in turn, strong defence supports the economy, thereby strengthening national financial resources."

The visit, which included meetings with local officials and communities, underscored joint efforts across ministries to strengthen infrastructure and security in Papua despite ongoing challenges.

Source: Bernama