Indonesia palm oil firms warn of food security risks as biodiesel use rises

JAKARTA -- Indonesian palm oil producers are voicing concerns that the continuing rise in domestic demand for biofuels could harm the country's food security and take a toll on exports amid stagnant production of the commodity.

Consumption of palm oil for biodiesel in Indonesia surpassed that for food for the first time last year, according to the Indonesian Palm Oil Association, commonly known as GAPKI from its Indonesian initials. About 46% of the total 23.2 million metric tonnes was for biodiesel, versus 44% for food and 10% for oleochemicals, used in the production of items like hand sanitizers and soaps.