InfoSAWIT, BOGOR – Rapolo Hutabarat, Head of the Sustainability Division of the Indonesian Biofuel Producers Association (Aprobi), emphasized the importance of building a comprehensive upstream-downstream architecture in the national palm oil industry. This was stated during the Palm Oil Downstream Industry Journalists Workshop, attended by InfoSAWIT, in Bogor on Saturday (February 22, 2025).
According to Hutabarat, although Indonesian palm oil products have succeeded in the global market, the economic potential of its downstream derivatives has not been optimally tapped. “Over the past three years, the average export value of palm oil products has only reached USD 30 billion per year. However, within the palm oil produced, there are 10 types of phytonutrients with a global market share of 10%. Unfortunately, not a single Indonesian company dominates this sector,” he explained.
He elaborated that the market value of palm phytonutrients is estimated to account for 30% of total exports, or around USD 10 billion per year. However, this opportunity has not been utilized due to a lack of industry initiative and supporting regulations. “We need to formulate a long-term strategy for the next 20 years, especially in anticipation of Indonesia's 100th anniversary of independence in 2045. It is time to ask: what will palm oil contribute to the future?” he added.
Biodiesel Success, Bioethanol Lagging Behind
Rapolo Hutabarat praised the success of the biodiesel program, which has reached the B35 mandate, thanks to consistent government support. However, he lamented the slow progress of bioethanol. “Bioethanol regulations have actually been set in the ESDM Ministerial Regulation No. 12 of 2025, with blending targets of 2% in 2015, 5% in 2016, and 10% in 2020. However, its implementation is still hindered by blending mechanisms and incentives,” he explained.
Although the government plans to implement 1% bioavtur (environmentally friendly aircraft fuel) by 2027, Hutabarat stressed the need for clear and consistent regulations. “Singapore and the European Union have already begun testing bioavtur. We must seize this momentum so that Indonesia is not just a player but a leader in the global market,” he asserted.
Rapolo also encouraged the optimization of sustainable land for producing bioenergy raw materials. “Palm oil smallholder must be involved as part of the supply chain in the downstream industry. This way, added value will not only be enjoyed by corporations but also by the community,” he stated.
In conclusion, he called for multi-stakeholder collaboration to strengthen the competitiveness of the palm oil industry. “If we are serious about developing downstream products, from phytonutrients to bioavtur, Indonesia can dominate the global market while maintaining its commitment to sustainability,” he concluded.
With the growing potential of the green economy, this strategic move is expected to position Indonesia as a pioneer in the sustainable palm oil-based industry on the international stage. (T2)
