GAPKI (18/06/2025) - Indonesia is endowed with abundant natural resources. One of them is oil palm that produces the versatile palm oil, one of the main vegetable oils that dominate the global market.

Unfortunately, many people still attribute it to only cooking oil, while in fact, it is a very versatile vegetable oil as it can be used for a variety of purposes for households and industries. Besides its traditional function as a source of foods, the palm oil has been also used as raw material to produce bioenergy, which is renewable, sustainable and friendly to the environment.

As a matter of fact, many countries across the globe have used the palm oil as one of the renewable energy sources. In Indonesia, the palm oil is processed into fatty acid methyl ester (FAME) as a blending material to produce biofuel, which can replace fossil-based gasoline and diesel fuel.

Palm oil not just cooking oil

The palm oil can be used as raw material to produce many other products:

• Source of Foods, such as margarine and chocolate (through oleofood),
• Beauty and Hygiene Products (through oleochemical),
• Renewable Energy Sources, such as biodiesel and bioavtur (through biofuel).

The process is part of the down-streaming of palm oil, which is the processing of crude palm oil into a variety of derivative products of high economic value, which are used in everyday life.

Why Biofuel from palm oil important?

More Ecofriendly

The biofuel is derived from palm oil which is processed from fresh fruit bunches (FFB) of oil palm trees, making it easy to decompose and only causing lower emissions compared to fossil gasoline and diesel fuel.

Renewable Energy

If cultivated sustainably, the palm oil-based biofuel can be continually renewed without draining the natural resources.

Reducing Import of fossil fuels

With biofuel, Indonesia can reduce its dependence on import of diesel fuel and strengthen its national energy sovereignty.

Generate people’s economy

The industry of palm oil-based biofuel creates new job opportunities and improves the welfare of oil palm farmers in many regions across Indonesia.

Latest Facts of Biofuel Industry in Indonesia (2025)

• The national production capacity of biodiesel has now reached 19.6 million kiloliters per year, significantly increased from 12.5 million kL in 2018.
• The total production of biodiesel in 2024 reached 13 billion liters and is projected to increase in 2025 along with the government’s plan to upgrade its mandatory biodiesel program.
• Since early 2025, Indonesia has formally implemented B40 program (blending of 40% biodiesel with 60% fossil diesel fuel). The government is preparing to implement its mandatory program of B50 (50% biodiesel and 50% fossil diesel fuel) early in 2026!
• More than 14 million tons of crude palm oil (CPO) are specially allocated for energy need.
• Bioethanol (based on molasses and cassava) has been developed, despite in limited scale, with installed production capacity of around 350 million liters.

Biofuel products as the future of palm oil

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

• Green Diesel, Green Gasoline, Green Avtur / Bio Jet Fuel
• HVO (Hydrotreated Vegetable Oil)
• Biofuel based on biomass from wastes of agriculture, cellulose, microalgae, lignin.

With the latest technology, all of the natural and waste materials can be processed into clean energy with much lower carbon if compared to fossil fuels.

The oil palm and its palm oil are versatile. It can be processed into foods, cosmetic products, and renewable energy sources , which can be maximized to realize Indonesia’s energy self-sufficiency.

Amid the global clime crisis and the global needs for clean energy, the oil palm should become a global solution instead of enemy. It should be adopted as a partner toward realizing better, greener and more sustainable future.

It is now time to see palm oil not from its certain stigmas fabricated by certain groups of people, but from its potentials.
Let’s support the use of sustainable palm oil for future energy source of Indonesia and the world.

Read more at https://gapki.id/en/news/2025/06/17/latest-facts-2025-show-palm-oil-ecofriendly-and-efficient