InfoSAWIT, YOGYAKARTA – Jatmiko Santosa, the President Director of PTPN IV PalmCo, addressed several serious challenges facing the national palm oil industry. In his presentation at an industry forum in mid-July 2025, Jatmiko emphasized the importance of multi-stakeholder collaboration and digital transformation as keys to maintaining competitiveness and sustainability in Indonesia's palm oil sector.
According to Jatmiko, despite palm oil being one of Indonesia's flagship commodities and a major contributor to the national economy, its productivity has nearly stagnated over the past decade.
"If we look at the trend over the last 10 years, our annual palm oil production growth (CAGR) is only about 1%. There has been no significant spike. Meanwhile, competitors like rapeseed have seen sharp increases with a CAGR of 6%," Jatmiko stated, as quoted by InfoSAWIT from PTPN IV PalmCo's official Instagram on Sunday, July 27, 2025.
He also noted that currently, the price of Indonesian palm oil is even higher than that of rapeseed, which used to be more expensive. This situation indicates that the palm oil industry needs a comprehensive evaluation to remain competitive in the global market.
In response to this situation, Jatmiko asserted that collaboration is essential. As a state-owned enterprise, PTPN IV PalmCo feels a responsibility to work together with all stakeholders.
"We cannot operate alone. As a BUMN entity that essentially belongs to the people, we must collaborate with everyone—from village cooperative units (KUD) to independent farmers and digital partners," he said.
With nearly 600,000 hectares of managed land, Jatmiko believes it is impossible to achieve transformation and productivity improvements without leveraging digital technology. Therefore, the company continues to promote digitalization in the supply chain and plantation operations.
Not only focused on productivity, PalmCo also places significant emphasis on sustainability. Jatmiko revealed that the company's commitment to Environmental, Social, and Governance (ESG) principles has garnered global recognition.
"Today, we are recognized as the second least risky plantation company in the world, according to an international agency. This is thanks to our commitment to ESG," he concluded.
By strengthening cross-sector synergies and prioritizing technological innovation, PalmCo is optimistic that the national palm oil industry can survive and thrive amid increasingly dynamic global competition. (T2)
