InfoSAWIT, BANDA ACEH — The Aceh government is inviting global companies to invest in the palm oil downstream sector, including the establishment of processing plants (refineries) that are currently lacking in the province known as Tanah Rencong.
"We invite all global company owners to purchase Aceh palm oil and start investing in building palm oil downstream processing plants in Aceh," said Aceh Deputy Governor Fadhlullah during the launch of the Sustainable Palm Oil Partnership Working Group organized by the Green Trade Initiative Foundation (IDH) in Banda Aceh on August 13.
The forum was attended by major palm oil industry companies such as Unilever, PepsiCo, Nestlé, Mars, Mondelēz, Musim Mas, Apical, Permata Hijau Group, and Sinar Mas, along with the Dutch Ambassador, representatives from Denmark, Norway, and several other countries.
Fadhlullah expressed hope that this forum would strengthen business confidence in Aceh as a green investment destination. He emphasized the importance of collaboration between local governments and industry players to realize the vision of sustainable palm oil.
According to him, the Aceh government has prepared two main policies to meet global market demands for deforestation-free palm oil that is inclusive of small farmers. These policies are the Aceh Sustainable Palm Oil Roadmap 2023–2045, regulated under Governor Regulation No. 9 of 2024, and the Aceh Sustainable Palm Oil Regional Action Plan 2023–2026 through Governor Regulation No. 17 of 2024.
"We want to introduce to the world that Aceh palm oil is grown on legal, quality, and deforestation-free plantations," he asserted.
Currently, Aceh has 63 palm oil mills (PKS) with a production capacity of over one million tons of CPO per year from approximately 470 thousand hectares of land, accounting for about 2.41 percent of national production. However, the province lacks downstream industries that can provide significant added value for both the community and businesses.
Fadhlullah hopes that global investors will be willing to build refineries in Aceh, whether for cooking oil, margarine, cosmetics, or other palm oil derivative products. "We hope this meeting can lead to the establishment of a sustainable refinery for Aceh," he stated.
In support, the Aceh government is committed to improving and strengthening infrastructure. The province currently has one international airport, ten local airports, five international fishing ports, five domestic ports, and power plants based on gas, water, and steam. The construction of a toll road connecting Banda Aceh to the North Sumatra border is underway, along with plans for a tunnel connecting Gunung Paro-Kulu and Geurutee to enhance access in the southwestern region of Aceh. (T2)
