Indonesian palm oil producers ready to use biodiesel

Pekanbaru (ANTARA News) - Most Indonesian palm oil producers are ready to use biodiesel fuel to increase the use of crude palm oil while the price of the commodity in the world market has dropped.

"After inspecting a number of regions including Riau, I conclude that many palm oil factories were ready to use biodiesel," the executive chairman of the Association of Indonesian palm oil producers (GAPKI), Derom Bangun, said here on Tuesday. 

He made the statement in reaction to a number of economists who considered the call for use of vegetable oil fuels in palmoil factories only giving more burden. 

He said the use of biodiesel was posssible because many palm oil factories had had the equipment capable for it. 

"Biodiesel could be used by mixing it with the diesel fuel to activate turbine in the factory. New equipment is not needed," he said. 

He said the use of biodiesel in palm oil factories so far could reduce around five percent of industrial diesel fuel need reaching 27 million tons a year. 

The use of biodiesel in palm oil factories could increase domestic use of palmoil up to 1.35 million tons a year, he said. 

In view of that he said crude palm oil use in the country could rise up to 4.5 million tons out of this year`s production of 18.8 to 19 million tons. 

He said the rise in the use of crude palm oil in the country may help reduce the impact of the declining crude palm oil exports as a result of the current global economic crisis.