InfoSAWIT, JAKARTA — The stark price disparity between crude palm oil (CPO) and solar as raw materials for biodiesel has compelled the Palm Oil Plantation Fund Management Agency (BPDP) to revise its financing allocation in the national mandatory biodiesel program.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed that budget changes have become a key issue in a coordination meeting with BPDP held on Wednesday (July 23) in Jakarta. The meeting also discussed proposals from the Ministry of Trade and the Ministry of Foreign Affairs regarding research and development in the palm oil sector.
“BPDP has already been related to the budget,” Airlangga briefly told the media.
Eniya Listiani Dewi, Director General of New Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, added that the current price disparity between CPO and solar is quite high, even reaching IDR 6,400 per liter last month.
“This necessitates an increase in the budget, with funds sourced from BPDP. This is merely a matter of allocation,” Eniya explained, as reported by InfoSAWIT from Media Indonesia on Thursday (July 24, 2025).
However, BPDP President Director Eddy Abdurrachman assured that the funds managed by BPDP are still sufficient to cover the additional financing needs for biodiesel production. He stated that the increased demand from the initial plan can still be accommodated without compromising other programs.
“It’s still matching, and we will maintain the others. Our fund availability is still adequate,” Eddy said.
Cocoa Levy Plan
In the same opportunity, Eddy also revealed the government’s plan to expand the scope of export levies and exit duties, not only for palm oil but also for cocoa commodities. This plan aligns with the regulatory mandate assigning BPDP to manage funds for both palm oil and cocoa commodities.
Funds from cocoa levies will be used for various sector enhancement programs, ranging from replanting to the provision of infrastructure and farmer training.
“It has been decided by the Steering Committee (Komrah), and the process is just waiting for the issuance of the PMK. Currently, it is undergoing public testing and harmonization. We aim to complete it within two months,” Eddy explained.
With the revised fund allocation and the expansion of BPDP’s mandate to the cocoa sector, the government hopes that downstreaming and sustainability programs in the plantation sector can continue to progress, despite the challenges of pricing and dependence on fossil energy. (T2)
