Jakarta: Measures to develop downstreaming and industrializing of palm oil sector must be taken in Indonesia given its enormous potentials, President Joko Widodo (Jokowi) has said.
According to the President, the potentials of the country’s crude palm oil (CPO) reach 52 million tons per year so the Government must make the most of it.
"We must carry out downstreaming and industrialization. The Government must force its implementation," said President Jokowi when inaugurating the biodiesel factory owned by PT Jhonlin Agro Raya in Tanah Bumbu regency, South Kalimantan province, Thursday, as quoted by the Cabinet Secretariat's website.
The President also explained that strengthening biodiesel industry is a very strategic choice in the future in a bid to increase national energy security and narrow down the large trade balance deficit due to diesel imports.
If Indonesia is able to produce its own biodiesel as a mixture material to produce diesel, the country's imports will drop drastically.
In 2020, it saved Rp38 trillion in foreign exchange and in 2021 it is estimated that the country can save foreign exchange amounting to up to Rp56 trillion.
The Head of State also underscored that the construction of the biodiesel plant will create many jobs, maintain stability of CPO prices, and help improve environmental quality by reducing greenhouse gas emissions.
The President also reminded the importance of upholding the commitment to leave fossil energy and switch to new and renewable energy and encouraged biodiesel production to continue to be increased.