Called D100, this "green diesel" is part of Indonesia's strategy to promote what is claimed to be environmentally friendly fuel.
Indonesia began mandating a 30% mix of biofuel in gasoline in January 2020. The plan is to increase the amount of biofuel used in the country.
The policy will increase demand for palm oil—the country's number one agricultural export. The government has positioned the program as a way to lower fossil fuel imports and greenhouse gas emissions.
But it will worsen deforestation, increase greenhouse gas emissions and lead to a loss of biodiversity. It will also lead to more social conflicts.
Industry proponents often argue that if global demand for vegetable oil were met by other crops—such as soy, sunflower and canola—more land would be needed for plantations, and thus lead to more deforestation.
This is controversial, for not all crops are equally linked with deforestation.
For example, more than 80% of the Indonesian rainforests, mangroves and peatlands most vulnerable to being cleared for palm oil production are still unprotected by the ban.
One of the goals of the moratorium is to increase the productivity of existing plantations.
Investing in improving productivity would be much better for the environment than establishing new plantations.
Productivity of existing plantations could be improved by, among other things, investing in fertilizer, pesticides and high-quality seeds, improving irrigation, and removing old trees with falling production and replacing them with new ones.
However, it has long been cheaper and more profitable for businesses to expand areas used for plantations than to invest in increased production.
They are part of a well-connected business elite that, in the past, had very good access to land (through corruption and political patronage).
As long as land is available and businesses are able to access it rather cheaply, they are likely to continue expanding the plantations.
The government should therefore close the loopholes of the moratorium, review existing permits (as mandated by the moratorium) and take legal action against any plantation that expands outside the given permits.
This would benefit from the active involvement of civil society.
As information about concession permits is of public interest, the government should release all data on existing concessions, in line with the ruling of the Supreme Court.
Legislation should ensure transparency and participation in decision-making for affected communities.
The government should also make sure subsidies to the palm oil sector benefit the poor and the many, not primarily companies and shareholders.
A recent US$195 million subsidy for biofuel to boost the economy during the pandemic drew criticism from the Indonesian Union of Palm Oil Farmers, who say it will only benefit conglomerates and big corporations.
If nothing is done, Indonesia's biofuel policies will likely contribute towards further deforestation, higher greenhouse gas emissions and more land conflicts.
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Indonesia readies its green diesel. These are the likely social and environmental impacts (2020, October 23)
retrieved 23 October 2020
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