Palm Oil Producing Regions Support National Energy Independence

The Indonesian Palm Oil Producing Districts Association (AKPSI) has declared that regions producing palm oil are vital for bolstering national energy security and achieving energy independence. Delis J Hehi, the association's daily chairman, highlighted this role in a written statement, emphasizing that palm oil downstreaming and the biodiesel program offer significant benefits beyond the energy sector, including improved welfare for farmers and strengthened regional economies.

AKPSI is actively engaging with the National Energy Council (DEN) to synchronize national palm oil downstreaming policies. Key discussion points include accelerating the mandatory biodiesel implementation towards B50 and reinforcing regional fiscal rights through palm oil revenue sharing schemes. AKPSI fully backs President Prabowo Subianto's administration in driving energy transformation, aiming for B50 implementation and the Net Zero Emission 2050 target.

Hehi stressed the necessity of cross-sectoral synergy to ensure that palm oil-based energy policies yield tangible economic impacts for local communities in producing regions, not just national targets. The association calls for local governments to actively participate in national energy planning, oversee smallholder farmer palm oil prices, strengthen infrastructure, and ensure regulatory certainty for investments. AKPSI also proposed optimizing the role of Regional-Owned Enterprises (BUMD) in managing palm oil estates to boost local revenue, resolve legal uncertainties regarding land use rights (HGU), and enhance energy transition cooperation through Memoranda of Understanding (MoU) with DEN.

During a meeting with DEN, AKPSI and the council reached four key agreements. These include DEN's commitment to facilitate coordination between AKPSI and the Ministry of Agriculture for better oversight of smallholder palm oil prices and productivity. DEN will also help coordinate with the Ministry of Finance to evaluate the palm oil revenue sharing formula, aiming for greater transparency and fairness for producing regions. DEN member Satya Widya Yudha welcomed AKPSI's proactive stance, affirming that the active involvement of palm oil-producing regions is crucial for the success of sustainable energy independence.