JAKARTA, Dec. 10 (Xinhua) -- Indonesia, the world's largest palm oil producer, will drift up further the percentage of bio-content used in bio-diesel, starting in 2021 as a move to ratchet down oil imports and increase palm oil consumption.
Indonesia's Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said on Tuesday that the government is planning to apply a bio-diesel program with 40 percent of bio-content (B40) from 2021 to 2022.
Pandjaitan said the program would commence with road tests using the diesel fuel with 40 percent of bio-content.
In January 2020, the government would start implementing a bio-diesel program with 30 percent of bio-content (B30), according to the ministry.
"Starting on January 1, B30 will be ready and in 2021 for B40," Minister Pandjaitan said at the Coordinating Ministry of Maritime and Investment Affairs, which also oversees the energy sector.
After the implementation of the B40 program, the percentage of bio-content used in the bio-diesel fuel would be further increased to 50 percent and the next hike would depend on the country's palm oil outputs, said Pandjaitan.
To raise the production, he said that one of the steps being carried out is rejuvenation of the aging palm trees.
Meanwhile, Chairman of the Indonesian Oil Palm Growers Association Joko Supriyono said Indonesia is planning to double the oil palm plantation productivity to 6.9 ton per hectare annually within the next 10 years from the concurrent flagging level.
In the meantime, the Agriculture Ministry said across the vast archipelagic country, the government has set a target of rejuvenating at least 2.4 million hectares out of 14.03 million hectares of the country's oil palm plantation.
Indonesia is a net-oil importer, and the rising oil price has edged up import cost which has contributed the most to the country's current account and trade deficit gaps, especially when the greenback is stronger against rupiah.