InfoSAWIT, JAKARTA – M. Fadhil Hasan, a senior economist at the Institute for Development of Economics and Finance (INDEF), believes that consistent regulation in the palm oil trade is crucial, not only for Indonesia as a major exporter but also for India as a key consumer.

"If regulations are applied inconsistently, the impact can be felt directly on inflation in India. Conversely, if they are consistent, the benefits will be felt by both parties," Fadhil said during an online discussion attended by InfoSAWIT on Monday (9/22/2025). He also emphasized the need for intensive dialogue between Indonesia and India to harmonize palm oil trade policies.

Furthermore, Fadhil stated that the current demand for palm oil is not only for food but also for energy, particularly biodiesel. According to him, the main challenge is not choosing between "food or fuel" but rather how to increase national palm oil production capacity.

"The solution lies in increasing productivity. The smallholder replanting program, the rehabilitation of unproductive plantations, and more precise fertilization can be key," he explained. Fadhil is optimistic that with this strategy, Indonesia can meet the dual demand for both food and energy. "We shouldn't see it as a problem but as an opportunity to strengthen the national palm oil industry," he concluded. (T2)