Muhammad Saifullah, Acting Assistant Deputy of Plantation and Horticulture at the Coordinating Ministry for Economic Affairs, said that the mandatory biodiesel program can save up to $6.81 billion in foreign exchange reserves and contribute to tax revenues of up to 2.74 trillion rupiahs ($190 million).
Biodiesel could ralso educe greenhouse gas emissions by 23.3 million tons of carbon dioxide (Co2), Saifullah added.
“This was implemented under the 2019 program and the ongoing program this year.”
He further added that the smear campaign carried out by the foreign states and media did not happen for other vegetable oil products such as rapeseed and soybean. As long as the palm oil price remains cheap compared to other vegetable oil prices, the negative campaign will continue, he said.
Lawsuit against EU
The Indonesian government filed a lawsuit against the European Union for discrimination.
The lawsuit was filed with the World Trade Organization (WTO) after the European Commission approved the Renewable Energy Directives II (RED2) which targets the use of renewable energy in the European Union in 2030.
The lawsuit was filed because last August the European Commission approved the Renewable Energy Directives II (RED2) which targets the use of renewable energy of 32 percent in the European Union in 2030.
RED2 has stipulated that the plants used for biofuel must not originate from deforested areas or are planted on peatlands. In the Delegated Ace (DA) regulation, it stated that palm-based biofuel is included in the high-risk Indirect Land Use Change (ILUC) criteria which could damage the environment and cause deforestation. The DA criteria will be reviewed in 2021 before it will be revised in 2023.