InfoSAWIT, JAKARTA — The Indonesian Professional Plantation Practitioners Association (P3PI) has reported persistently high loss rates in national palm oil mills. Posma Sinurat, Head of the Palm Oil Mill Division at P3PI, noted that typical losses range from 1 to 1.8 percent. However, with effective management, this figure could potentially be reduced to 0.98 percent or lower.
"The ideal figure is actually below 1 percent. But we will use 1 percent as a general benchmark. The smaller the number, the better," Posma stated during a press conference for the 3rd TPOMI in Jakarta on Tuesday (June 3, 2025).
He explained that high loss rates are heavily influenced by two main factors he refers to as "2M": Man and Machine. Both play crucial roles in determining production efficiency in palm oil mills.
"When we talk about people, we mean workers who truly understand how to operate the machines. Many field workers lack sufficient knowledge about optimal machine operation," he said.
Posma cited examples from several mills using outdated or improperly calibrated equipment, such as worn-out screw presses. This issue is exacerbated by a lack of training and inconsistent work standards.
"Sometimes the tools used do not meet standards and have fallen short in performance. They are then operated by untrained workers. This combination leads to high losses," he explained.
According to Posma, reducing losses can be approached through two main strategies: enhancing human resource quality and implementing work instructions that align with machine operation procedures.
"Larger companies usually have good SOPs and training systems. The challenge lies with smaller companies, where there is still a shortage of trained workers and no standardized procedures for machine operation," he noted.
He emphasized the importance of having workers with competency standards in operating equipment, particularly in machine calibration and calculations. Without this, machine operation tends to rely on habit or intuition rather than proper technical procedures.
"Sometimes workers operate machines based on feeling or habit. However, it should be according to operational standards. This can lead to suboptimal processing results," he clarified.
Not Worse Than Malaysia, But Plenty of Room for Improvement
In response to comparisons with Malaysia, Posma stated that the loss rates in Indonesian palm oil mills are not generally higher. However, he acknowledged that domestic challenges remain significant, particularly in management and governance of mills in rural areas.
"Malaysia's loss rates are not higher, but we in Indonesia have much room for improvement. Many mills in villages or remote areas have suboptimal management. Information regarding machine maintenance and worker training is not evenly distributed," he said.
He hopes for greater attention to educating small business owners and mill operators about the importance of machine efficiency and workforce training. Posma is optimistic that if these two factors are improved, Indonesia's palm oil industry productivity could see significant increases.
"Many entrepreneurs already know the solutions. They just need access to information and training support to enhance their mill quality. This presents a significant opportunity for national productivity improvement," he concluded. (T2)
