Indonesia to Launch Palm Oil Project in South Papua to Bolster Biodiesel Output
- 11-Jun-2025 12:15 AM
- Journalist: William Faulkner
Indonesia plans to establish a large-scale oil palm plantation in the Boven Digoel regency of South Papua, part of a broader national strategy to increase biodiesel production, reduce reliance on fuel imports and reinforce Papua’s role in national development and stability, according to the Ministry of Defence.
The initiative aligns with President Prabowo Subianto’s efforts to boost energy security and economic resilience through renewable energy development. In a statement Sunday, the Defence Ministry emphasized the government’s goal of achieving energy self-sufficiency while simultaneously strengthening national sovereignty from both economic and security standpoints.
Defence Minister Sjafrie Sjamsoeddin led an aerial site survey on Sunday, accompanied by top military officials, infrastructure experts, and representatives from PT Agrinas Palma Nusantara, the firm expected to play a central role in the project. The Governor of South Papua also joined the visit, along with Agriculture Minister Amran Sulaiman, Forestry Minister Raja Juli Antoni, and Public Works Minister Dody Hanggodo.
The Defence Ministry highlighted the critical importance of interministerial cooperation—especially between the defence, agriculture, forestry and energy sectors—in advancing sustainable energy independence. Officials view this cross-sectoral initiative as a foundation for integrating South Papua into national infrastructure development, even as the region grapples with separatist tensions and security concerns.
“The government reaffirms its commitment to national energy self-sufficiency while enhancing sovereignty from both security and economic perspectives,” the Defence Ministry said in its statement.
The ministry also noted that the planned development is part of a broader approach to enhance stability in Papua, a region rich in natural resources but frequently troubled by conflict and underdevelopment.
In a parallel visit, Sjafrie and Finance Minister Sri Mulyani Indrawati traveled to several conflict-prone areas, including Timika and Nduga, to assess the local security landscape. The officials were briefed by regional leaders and military commanders on challenges in maintaining order and promoting development.
In a joint statement, the ministers underscored the link between a strong defence and economic strength, noting that each supports and reinforces the other. “Defence requires financial support to be realized, and conversely, a strong defence supports the economy, thereby strengthening national finances,” they said.
Their visit also included discussions with local officials and community members, underlining a whole-of-government approach to advancing infrastructure, energy development, and long-term peace in Papua. The project is seen as a key step in integrating the province more fully into Indonesia’s national energy and development agenda.