Bisnis.com, JAKARTA — The palm oil industry is calling on the government to reevaluate the planned 50% biofuel-diesel blend program (B50) amid stagnant palm oil production, arguing that increasing biofuel blend from 40% (B40) to 50% will be difficult to achieve and is likely incur impacts.
Indonesian Palm Oil Association (GAPKI) chairman Eddy Martono warned that the B50 program, which ingredient is derived from palm oil, is generally funded from export levies. At the same time, crude palm oil (CPO) exports are sluggish, meaning if the program is rolled out, forex contributions to the state will take a hit.
