Indonesia has vast palm oil plantations as the foundation for developing biodiesel. (Photo: iStock)
Indonesia has reached an innovative milestone in bioenergy development, officially confirming that B40 biodiesel, a blend of 40% palm oil and 60% regular diesel, will be introduced starting next year. The government plans to increase palm oil production quotas to meet the growing demand for biodiesel.
However, concerns have arisen over Indonesia's export of wood pellets, which some critics claims are sourced from deforested areas, prompting calls for an investigation from the South Korean National Assembly.
Indonesia to cut carbon emissions through B40 program
Bioenergy is a key renewable energy focus of Indonesian President Prabowo Subianto’s administration, with palm oil-based biodiesel seen as a core component. The upcoming introduction of B40 biodiesel aims to reduce carbon emissions in the transportation sector and support Indonesia’s 2050 net-zero target.
Airlangga Hartarto, the Indonesian Minister for Economic Coordination, stated in a press conference that through the B35 program, Indonesia has already reduced 32 million tons of carbon emissions, and the B40 program is expected to raise this to 40 million tons.
The government has also committed to increasing palm oil production quotas to support the B40 program's requirements. Additionally, to encourage the use of biodiesel, the Indonesian Palm Oil Plantation Fund Management Agency (BPDPKS) is ready to offer subsidies to reduce the price gap between B40 and regular diesel.
Concerns over sustainability of wood pellet exports
However, the expansion of biofuel production raises environmental concerns. Many worry that increasing palm oil plantations could displace forested land, threatening forest ecosystems.
This concern is particularly significant in areas like Sulawesi, North Kalimantan, and South Papua, where wood pellets, which should be made from waste wood, are reportedly being produced by cutting down forests.
Wood pellets. Indonesian company PT Biomasa Jaya Abadi (BJA) sourced its wood pellets from the clear-cutting of over 1,000 hectares (2,500 acres) of Sulawesi rainforest. (Photo: iStock)
This issue not only highlights the conflict between carbon reduction and environmental sustainability but also threatens Indonesia's bioenergy exports. Recently, South Korean lawmaker Moon Dae-Lim urged the South Korean government to investigate and halt imports of Indonesian wood pellets.
Moon’s report argues that Indonesia’s deforestation to meet the demand for wood pellets could severely damage forests, particularly as bioenergy has become the second-largest renewable energy source in South Korea. More than 80% of the raw materials for South Korea’s bioenergy—primarily high-energy wood pellets—are imported, with Indonesia being the third-largest supplier, following Vietnam and Russia.
Source: Jakarta Globe, Mongabay, AP
