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Indonesia primary econ minister positive palm oil production can be increased

Indonesia's chief economic minister Airlangga Hartarto said on Thursday he is positive palm oil production can be improved in coming years to meet the nation's increasing need for biofuel.

Indonesia's mandated biodiesel blend will rise to require a. 40% palm oil-based fuel next year, up from 35% at present.

Increasing the necessary mix to 40% may result in palm oil. utilized for energy increasing to 13.9 million metric heaps, from the. approximated 11 million heaps required this year with B35, Indonesia's. biofuel producers association APROBI had actually previously approximated.

Production of the vegetable oil in Indonesia has been. stagnant recently due to aging trees.

The government is improving the smallholder's palm oil. replanting programme to meet the greater demand, Airlangga told. individuals at Indonesia Palm Oil Conference.

Because 2017, Indonesia has actually offered funds for smallholders to. replant 360,000 hectares (890,000 acres), he said, including the. government is promoting improved farming practices to increase. yields.

The replanting program has been behind schedule. The. launch target was to replant 180,000 hectare each year.

(source: Reuters)