Screenshot--Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, delivering his remarks at the Indonesian Pavilion during the World Economic Forum Annual Meeting 2023 in Davos, Switzerland, on Tuesday (January 17, 2023). (ANTARA/YouTube channel of Investment Ministry-BKPM TV/uyu)
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.
Jakarta (ANTARA) - Indonesia will not import fossil fuels from 2045 as it will have developed the potential of palm oil as an alternative fuel by then, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has informed.
"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," he said in Davos, Switzerland, on Tuesday local time.
He made the statement during a presentation entitled "Indonesia Zero Pathway: Opportunity & Challenges" at the Indonesian Pavilion at the World Economic Forum (WEF) Annual Meeting 2023.
At least 30 percent of palm oil production will be used for the food industry, while the remaining 70 percent will be used to manufacture ethanol, the coordinating minister said.
"Thus, we will not need to import fossil fuel at that time (by 2045)," he added.
He said that the development of alternative fuels is one of the five green economy pillars whose implementation is being intensified by Indonesia.
The other four pillars are the decarbonization of the electricity sector, the utilization of low-carbon transportation, the development of green industry, and the strengthening of carbon sink.
According to Pandjaitan, the transition from fossil energy to renewable energy would encourage the realization of 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 put a moratorium on oil palm plantation permits, thus the productivity of the plantations can be increased from 2.3 tons per hectare to 8-10 tons per hectare in the next 10-15 years, he observed.
In addition, the moratorium policy aims to reduce deforestation due to the expansion of oil palm plantations.
Furthermore, as the world's largest crude palm oil (CPO) producer in the world, Indonesia has also implemented a mandatory program to push the use of CPO-based biodiesel since 2008, the coordinating minister said.
The mandatory program aims to cut imports of fossil fuels, increase the use of renewable energy, as well as minimize emissions from the use of fossil fuels.