JAKARTA — Indonesia’s push to meet its ambitious biofuel targets by expanding oil palm plantations could cost the country billions in environmental damage and social conflict, a new analysis by environmental NGO Madani Berkelanjutan warns. But if Indonesia diversifies its biofuel feedstock sources at community level, it could cut the ecological and social costs to […]
  • Indonesia’s current biofuel strategy relies heavily on expanding oil palm plantations to meet its B40 and upcoming B50 biodiesel mandates, which could cause up to $4.72 billion in environmental and social damage.
  • A proposed alternative scenario by the NGO Madani Berkelanjutan calls for boosting yields from existing plantations and promoting community-based biofuel production using diverse feedstocks like used cooking oil and non-palm crops.
  • This alternative model avoids deforestation and social conflict, supports rural economies, and could generate a higher net economic benefit of $37.1 billion, compared to $31.36 billion under the business-as-usual scenario.
  • Researchers warn the country is nearing its ecological cap for oil palm plantations, urging a shift to intensification and diversification to prevent irreversible environmental harm.

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