Indonesian, Thai and Philippine palm cultivation to increase to 5 million acres to support biodiesel production

A roundup of Southeast Asian biofuel plans shows that Indonesia plans to reserve 13.5 million acres for biofuels by 2010, of which 3.7 million acres will be palm oil plantations. Thailand has indicated that palm oil plantation will increase from 79,000 to 200,000 acres this year, with the potential to add another 1 million acres.  The Philippines have reserved 1.1 million acres for palm oil plantation.

The Philippines and Thailand have introduced biodiesel blending mandates, and Indonesia has targeted palm oil as a source of increased export income. Malaysia is the regional leader in palm oil exports. A production shortage has led to a global increase in palm oil prices of more than 50 percent, shutting down some planned biodiesel project development.

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