The Government All Out Supports the Development of the Sustainable Palm Oil Industry

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Liputan6.com, Jakarta Minister of Agriculture Syahrul Yasin Limpo emphasized that the government is all out to support GAPKI (Indonesian Palm Oil Association) in developing a sustainable palm oil industry. Including the people’s palm oil acceleration program which must be implemented synergistically between the government, business actors, and oil palm smallholders.

“The president, vice president and ministers all out support GAPKI to protect the national palm oil industry. Including accelerating the realization of people’s palm oil rejuvenation,” said the Minister of Agriculture Syahrul Yasin Limpo at the opening of the XI GAPKI National Conference (Munas) at the Vice Presidential Palace, quoted on Saturday (4/3/2023).

Syahrul emphasized that palm oil continues to be the support and mainstay of the national economy amidst conditions of global economic uncertainty. This national strategic commodity makes a very significant contribution to Indonesia’s export performance.

Based on data from the Central Statistics Agency (BPS, provisional figures), said the Minister of Agriculture, the value of agricultural exports from January to December 2022 was IDR 640.56 trillion, up 3.93 percent compared to the same period in 2021. The plantation sub-sector continues to be the largest contributor to exports in the agricultural sector. agriculture with a contribution of IDR 622.37 trillion (97.16 percent).

Exports of plantation commodities which have soared in 2022 are mostly contributed by palm oil commodities with a value of IDR 468.64 3 trillion (75.30 percent).

“This shows that the opportunity to export plantation commodities, including palm oil, as a source of foreign exchange, is still increasing,” said Syahrul proudly.

According to Syahrul, the contribution of oil palm is supported by the national oil palm cover area which has reached 16.38 million hectares (ha), of which around 6.9 million ha belongs to smallholder oil palm planters.

“However, the condition of our people’s oil palm plantations continues to face big challenges related to productivity and rejuvenation achievements,” he said.

Partnership

Syahrul said the partnership between large palm oil companies (private and BUMN) and smallholder plantations must be strengthened. This partnership will encourage increased productivity of smallholder oil palm plantations, one of which is through the smallholder oil palm rejuvenation program (PSR).

Each year the PSR program is targeted to cover an area of ​​180,000 ha spread over 21 provinces with oil palm centers. “GAPKI must be able to take part in the success of the program,” said the Minister of Agriculture.

Meanwhile, General Chairperson of GAPKI Joko Supriyono said GAPKI as an association of the upstream sector of oil palm plantations is a partner of the government.

GAPKI remains focused on continuing to maintain and encourage the progress of the palm oil industry and is still able to make the maximum contribution in providing employment and foreign exchange contributions. This has been proven during the past three years of the pandemic, the palm oil industry has been able to quickly recover in the face of slowing economic growth.

“During the pandemic, there were no layoffs in the palm oil industry,” said Joko Supriyono.

Palm Farmers

According to Joko Supriyono, oil palm plantation companies are committed and consistent in building and strengthening partnerships, especially partnerships with oil palm smallholders.

“Partnerships with smallholders are a necessity, companies and smallholders are an inseparable supply chain. If the FFB price drops and it is difficult for farmers, it will also be difficult for companies because CPO prices will definitely fall, and vice versa,” he explained.

Partnerships are becoming increasingly important and even urgent at this time, especially because of the importance of increasing the productivity of farmers’ gardens. The movement to increase the productivity of people’s gardens is carried out with the people’s oil palm rejuvenation program (PSR).

Plantation companies, said Joko, will take part in this program through partnerships with farmers both in the PSR program and cultivation techniques for those who have not yet PSR.

“We believe the PSR program is in line with the government’s current priorities, namely reducing extreme poverty, reducing stunting and encouraging investment,” he said.