Indonesia palm oil: 2025 outlook from PT SMART

Pak Daud of PT Smart speaks at OFIC KL 2014. This is the 166th year of palm oil in Indonesia.

2025 Indonesia palm oil consumption expected to be about half for food and oleo and half for biodiesel (under the 2014 energy decree). Mielke notes that this suggests no increase in Indonesia palm oil exports which will not serve global consumer needs. 

What is the 2015 biodiesel implementation expectation versus 2014 (10-20 percent transport-power under target)? With lifting of subsidy there can be extra funds for cash subsidy to the poor. The fossil fuel and palm oil price will be better balanced to improve prospects. Improved logistics is also needed and a policy priority.

Pak Daud expects new areas 350,000 ha per year expansion in 2015, falling to 150,000 ha by 2025. 

One land map is a challenge. Spatial mapping should be done by Ministry of Public Works. Forestry has its map for it's 110 million hectare area. This map should be done a day this will clarify land that can be cultivated and for other uses. This should be finalised in 2015.

Foreign ownership limit will be delegated and set by government regulation which is not known yet.