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Evaluating the palm oil demand in Indonesia: Production trends, yields, and emerging issues
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.ORCID iD: 0000-0001-7348-1296
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.ORCID iD: 0000-0001-7123-1824
2018 (English)In: ISSN 1759-7269Article in journal (Refereed) Accepted
Abstract [en]

This paper investigates the development of domestic and international demand for Indonesian palm oil, in line with national biofuel mandates and established export markets. Domestic demand for palm oil for (i) achieving biodiesel targets and (ii) meeting food and industrial uses reaches 20 million tonnes by 2025, equivalent to 61% of Indonesian production in 2014. Thus, it is possible for Indonesia to be self-sufficient, reaching the biodiesel targets without increasing plantation areas. However, to meet both domestic and international demand, a total 51 million tonnes of crude palm oil will be needed in 2025. This requires additional land up to 6 million hectares with current yields. The expansion of oil palm plantations in Indonesia has led to debates related to deforestation, threatened biodiversity, and greenhouse gas emissions. We show that increasing agricultural yields could serve the purpose, benefiting biodiesel production while reducing the need for new land. Therefore, we recommend that the ambitious Indonesian biodiesel mandates are pursued in combination with a strategy for increased productivity in palm oil production, utilization of degraded land to contain greenhouse gas emissions, and use of palm oil biomass residues for energy production.

Place, publisher, year, edition, pages
2018.
Keywords [en]
Biodiesel, Palm Oil, Yields, Land Use, Biofuel Policy, Indonesia
National Category
Energy Engineering
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-224787OAI: oai:DiVA.org:kth-224787DiVA, id: diva2:1192897
Funder
Swedish Energy Agency
Note

QCR 20180326

Available from: 2018-03-23 Created: 2018-03-23 Last updated: 2018-05-24Bibliographically approved

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Khatiwada, DilipPalmén, CarlSilveira, Semida

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
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Output format
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