TEMPO.CO, Jakarta - President Jokowi offered one of many alternatives to help suppress the current account deficit by maximizing Indonesia's natural resources processing, such as palm oil. Jokowi said that the country’s palm oil exports are dominated by CPO.
Jokowi then mentioned his hopes to see palm oil productions to be mostly consumed domestically.
"Why not use it for ourselves? Why do we have to go through fighting with the European Union with the CPO bans and discrimination," said the President at the Ballroom Ritz Carlton on Thursday, November 28, 2019.
Jokowi argued that the commodity's value will improve if CPO is processed and used domestically and will show its true value in only one or two-years time. Jokowi said the increase in value will align with the quality of CPO produced, which will also help palm oil farmers.
Currently, the Indonesian government has processed this commodity into the biodiesel B20 (diesel fuel mixed with 20 percent palm oil) and made the use of it mandatory. Jokowi said the government is developing the use of CPO into better quality fuels such as B30, B50, or B100.
"We'll see how much the B20 will increase in price, same as B30, and B100. Our goal is to go there," said the President.