Maintaining Energy Security, Sultan Supports Government to Increase DMO CPO for Biodiesel

04 Januari 2023 oleh admin

dpd.go.id- Vice chairman of the House of Regional Representatives (DPD) RI Sultan B. Najamudin asked the government to gradually increase the Domestic Market Obligation (DMO) for crude palm oil (CPO) to meet the needs of the B35 and B40 biodiesel mix.

This was conveyed by Sultan following the symptoms of an energy crisis following the increasing tension and escalation between Russia and Ukraine along with NATO member countries. In addition to efforts to reject processed palm products by Europe and the potential to reduce demand for Indonesian CPO by India.

"We appreciate the policy of the Minister of Trade of the Republic of Indonesia which will impose an increase in the portion of DMO CPO from a ratio of 1:8 to 1:6 to anticipate a shortage of cooking oil ahead of Ramadan. However, in the long run the government also needs to prepare more CPO supply for the needs of the B35 biodiesel mix policy or even B40", said Sultan through his official statement on Wednesday (04/01).

As a vast archipelagic country, said the Sultan, Indonesia needs more biodiesel fuel to support transportation and logistics activities. On the other hand, we need to pay attention again to the value of fuel imports which have continued to increase and have significantly eroded the country's foreign exchange reserves.

"So far, we have only been a supplier of raw materials for biodiesel to European countries. In 2021, the European Union imports palm oil and its derivatives up to US$ 6.4 billion, most of which will be used as biofuel," said the former the chairman of the Bengkulu HIPMI.

As the main producer of CPO, he continued, Indonesia should be able to become a major player in the world's biodiesel production. But unfortunately in 2022, consumption of palm oil for biodiesel is estimated to only be 17% of CPO production, even though Indonesian Palm Oil Production Reaches 45.12 Million Tons in 2022.

"Therefore, it is hoped that in the future the DMO for CPO which is specifically designated for biodiesel will continue to be proportionally increased according to needs. We also appreciate the Ministry of Energy and Mineral Resources for winning the highest award in the Southeast Asia Region at the ASEAN Energy Awards (AEA) 2022," he concluded. (*)