Indonesian Oil Palm Farmers Association Assesses the Implementation of B30 Makes Palm Oil Prices Stable for Smallholders

The Indonesian Palm Oil Farmers Association (Apkasindo) assessed that the implementation of the Mandatory B30 Program (a mixture of 30 percent biodiesel and 70 percent diesel fuel) since January 1, 2020

was able to maintain the stability of the price of fresh fruit bunches (FFB) for oil palm farmers. "The mandatory biodiesel policy has an impact on oil palm uptake and farmers' FFB prices, and the price of FFB closing before the Eid holiday rose significantly," he continued, becoming a historical zero point for why farmers' FFB prices were very well maintained and Indonesia was recorded as the first country in the world to have implement B30. According to him, the implementation of B30 creates a double effect that fascinates the world, namely a significant increase in domestic absorption and a reduction in diesel imports by this mix. Gulat said that before B30 was implemented, the price of FFB for farmers during 2017, 2018, 2019 was in the range of IDR 700-1200/kg. However, after the implementation of B30 which is supported by BPDPKS funds starting from January 2020, the price of FFB for farmers is at the level of Rp. 1,800-Rp. 2,550/kg. "We oil palm farmers are very grateful for the Mandatory B30 policy," said Gulat.

|•SOURCE•| Image :CNBC |

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