Indonesia intensifies oil palm cultivation to meet biodiesel demand

By Vietnam News Agency
Thu, October 31, 2024 | 5:56 pm GMT+7

Indonesia is expanding its oil palm cultivation to increase crude palm oil (CPO) production as a raw material for 50% biodiesel (B50), according to the country’s Ministry of Agriculture.

Fresh oil palm fruit bunches waiting to be processed into crude palm oil at a palm oil mill in West Aceh, Aceh, on July 21, 2023. Photo by VNA.

Fresh oil palm fruit bunches waiting to be processed into crude palm oil at a palm oil mill in West Aceh, Aceh, on July 21, 2023. Photo by VNA.

The ministry's acting director general of Plantations Heru Tri Widarto said that intensification is a faster solution compared to replanting, which can take up to three years, as it can be carried out not only on smallholder palm oil farms but also on private plantations.

With Indonesia's oil palm plantation area reaching 16.8 million hectares, the potential to increase production significantly remains through optimised land use.

The ministry is currently conducting a study to balance the need for CPO across food, energy, and export needs, which will help define production increase targets.

According to the Indonesian Palm Oil Producers Association, CPO production reached 50.07 million tonnes in 2023, with domestic consumption rising due to the implementation of the B35 biodiesel policy.

Plans to raise the biodiesel blend to B40 by January 2025 are in motion, along with preparations for B50 implementation.

Comments (0)
  • Read More
Thai giant CP’s Q3 Vietnam revenue drops 20% as hog prices slump

Thai giant CP’s Q3 Vietnam revenue drops 20% as hog prices slump

Thailand’s Charoen Pokphand Foods PCL (CPF) reported a sharp downturn in its Vietnam business in Q3, making the country its only major market to contract.

Companies - Mon, November 17, 2025 | 4:16 pm GMT+7

Surging demand for gas turbines tightens supply chains, extends lead times: Siemens Energy

Surging demand for gas turbines tightens supply chains, extends lead times: Siemens Energy

Demand for gas turbines is rising rapidly, especially in regions with a surge in data center development, tightening supply chains and extending lead times - factors that investors must closely track during project preparation, according to Siemens Energy.

Companies - Mon, November 17, 2025 | 1:34 pm GMT+7

Novaland completes first phase of restructuring, targets 'returning to growth' from 2027

Novaland completes first phase of restructuring, targets 'returning to growth' from 2027

Novaland, a leading real estate developer in Vietnam, said it has completed the first phase of its multi-year restructuring plan and aims to finish the entire program by end-2026, positioning the company to return to growth from 2027.

Companies - Mon, November 17, 2025 | 12:26 pm GMT+7

Vietnam's property developer Regal Group to list shares on HCMC bourse in Q4

Vietnam's property developer Regal Group to list shares on HCMC bourse in Q4

Regal Group JSC, a property developer based in the central city of Danang, has applied to list its 200 million RGG shares on the Ho Chi Minh City Stock Exchange (HoSE) in Q4/2025.

Real Estate - Mon, November 17, 2025 | 10:52 am GMT+7

Vietnam's upstream oil & gas stocks surge on project momentum, regulatory easing

Vietnam's upstream oil & gas stocks surge on project momentum, regulatory easing

Stocks of Vietnam’s upstream oil and gas companies have surged in recent weeks, boosted by rising exploration activity and new rules that accelerate project approvals, while midstream and downstream players face pressure from falling crude prices.

Companies - Mon, November 17, 2025 | 8:57 am GMT+7

Indonesia to turn Bali into Asia’s next medical tourism hotspot

Indonesia to turn Bali into Asia’s next medical tourism hotspot

Indonesia is stepping up efforts to reduce the number of citizens seeking treatment abroad and turn Bali into Asia’s leading medical tourism hotspot.

Southeast Asia - Sun, November 16, 2025 | 9:05 pm GMT+7

Malaysia aims to become Southeast Asia’s AI, EV hub

Malaysia aims to become Southeast Asia’s AI, EV hub

Malaysia is shifting into high gear as it positions itself to become Southeast Asia’s leading hub for smart, sustainable mobility, powered by breakthroughs in electric vehicles (EVs), artificial intelligence (AI), and advanced manufacturing.

Southeast Asia - Sun, November 16, 2025 | 9:00 pm GMT+7

108 foreign investors hold 26.8% stake in Vietnam's industrial giant Thaco

108 foreign investors hold 26.8% stake in Vietnam's industrial giant Thaco

Vietnam’s industrial conglomerate Truong Hai Group (Thaco) has reported a charter capital of VND30.51 trillion ($1.16 billion), with domestic private capital accounting for 73.2% and 108 foreign investors holding the remaining 26.8% stake.

Companies - Sun, November 16, 2025 | 4:42 pm GMT+7

Vietnam the most important manufacturing hub of Chinese electronics giant Luxshare-ICT: exec

Vietnam the most important manufacturing hub of Chinese electronics giant Luxshare-ICT: exec

Major Chinese electronics manufacturer Luxshare-ICT will expand its operations in Vietnam by rolling out large science-technology and innovation projects in the northern province of Bac Ninh and other localities, its vice chairman Wang Laisheng said on Saturday.

Companies - Sun, November 16, 2025 | 2:46 pm GMT+7

Sweden’s Syre reinforces $1 bln textile recycling plant in Vietnam with Nike deal

Sweden’s Syre reinforces $1 bln textile recycling plant in Vietnam with Nike deal

A strategic deal with U.S. sportswear giant Nike is expected to consolidate Swedish recycling start-up Syre's plans to roll out a global network of textile-to-textile recycling facilities, beginning with a $1 billion plant in Vietnam.

Industries - Sun, November 16, 2025 | 8:00 am GMT+7

Vietnam plans roadmap to allow short selling under stock market upgrade program

Vietnam plans roadmap to allow short selling under stock market upgrade program

Vietnam’s Ministry of Finance has outlined a plan to introduce short selling and securities lending on a controlled basis as part of its broader effort to upgrade the country’s stock market from frontier to secondary emerging status.

Finance - Sat, November 15, 2025 | 8:01 pm GMT+7

Vietnam's first LNG power plants to begin commercial operation in Nov-Dec

Vietnam's first LNG power plants to begin commercial operation in Nov-Dec

Nhon Trach 3 and 4, Vietnam’s first LNG-fired power plants, are expected to begin commercial operations at the end of 2025, according to authorities in the southern province of Dong Nai.

Energy - Sat, November 15, 2025 | 3:42 pm GMT+7

Central Vietnam hub pushes ahead with sea encroachment project to strongly attract FDI

Central Vietnam hub pushes ahead with sea encroachment project to strongly attract FDI

A sea encroachment project in Danang will be vital to the city's strong foreign investment attraction, said Chairman of the municipal People’s Committee Pham Duc An.

Industries - Sat, November 15, 2025 | 11:44 am GMT+7

Grocery chain Bach Hoa Xanh to enter northern Vietnam with first store in Ninh Binh province

Grocery chain Bach Hoa Xanh to enter northern Vietnam with first store in Ninh Binh province

Bach Hoa Xanh, a grocery chain operated by Vietnam’s leading retailer Mobile World Investment Corporation (MWG), will open its first store in northern Vietnam in late November, marking its major geographic expansion since the brand was launched nearly a decade ago.

Industries - Sat, November 15, 2025 | 8:00 am GMT+7

Indonesia strives to restore its position as a major sugar exporter

Indonesia strives to restore its position as a major sugar exporter

Indonesia aims to achieve self-sufficiency in white sugar by 2026 as part of a national drive to strengthen food security and revive the country’s once-thriving sugar industry, said Agriculture Minister Andi Amran Sulaiman.

Southeast Asia - Fri, November 14, 2025 | 9:10 pm GMT+7

Honda warns Vietnam sales could drop 200,000 units on proposed gasoline motorbike ban

Honda warns Vietnam sales could drop 200,000 units on proposed gasoline motorbike ban

Honda Motor Co. has warned that its annual motorbike sales in Vietnam could fall by around 200,000 units if Hanoi moves ahead with a plan to ban gasoline-powered two-wheelers in downtown city.

Companies - Fri, November 14, 2025 | 8:53 pm GMT+7