Indonesia Plans to Cease Importing Fossil Fuels by 2045, According to Minister Pandjaitan
Indonesia Plans to Cease Importing Fossil Fuels by 2045, According to Minister Pandjaitan

Indonesia Plans to Cease Importing Fossil Fuels by 2045, According to Minister Pandjaitan

  • 19-Jan-2023 3:17 PM
  • Journalist: Bob Duffler

Jakarta (Indonesia): By 2045, Indonesia will have the capability to use Palm oil as an alternative fuel, according to Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan. This marks a change in direction for the country, taking away its reliance on imported fossil fuels.

"We are currently researching (the potential of) Palm oil because we believe that we will be able to produce around 100 million tons of Palm oil by 2045,” On Tuesday local time, he spoke from Davos, Switzerland.

He made the statement at a presentation titled “Indonesia Zero Pathway: Opportunity & Challenges” at the Indonesian Pavilion of the World Economic Forum (WEF) Annual Meeting 2023.

The coordinating minister announced that at least 30% of Palm oil production will be used for the food industry, while 70% will be used to manufacture ethanol.

"Thus, we will not need to import fossil fuel at that time (by 2045)," he added.

He stated that the development of alternative fuels is one of the five green economy pillars being intensified by Indonesia, alongside the decarbonization of the electricity sector, utilization of low-carbon transportation, development of green industry, and strengthening of carbon sink. According to Pandjaitan, transitioning from fossil energy to renewable energy would lead to net-zero emissions by 2060.

"That is the reason that the (utilization of the derivative products of) Palm oil will have big impacts in the upcoming years," he said.

The Indonesian government has placed a moratorium on oil Palm plantation permits, allowing the productivity of plantations to be increased from 2.3 tons per hectare to 8-10 tons per hectare within the next 10-15 years, according to the coordinating minister. The moratorium policy seeks to reduce deforestation caused by oil Palm plantations. As the world’s leading crude Palm oil (CPO) producer, Indonesia has also implemented a mandatory program that encourages the use of CPO-based biodiesel since 2008. This program aims to reduce imports of fossil fuels and increase the use of renewable energy while minimizing emissions from fossil fuels.

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