InfoSAWIT, KUTAI TIMUR – The palm oil industry is proving to be a key economic driver in the northern part of East Kalimantan. This was evident during the visit of East Kalimantan Governor, Dr. H. Rudy Mas’ud (Harum), to a Sinar Mas Group plantation in Wahau District, Kutai Timur Regency, last Saturday (9/6).
During his visit, Governor Harum emphasized the importance of major companies forging healthy partnerships with local farmers. He expressed his hope that Sinar Mas would distribute high-quality oil palm seedlings through its corporate social responsibility (CSR) program to its partnered farmer groups and cooperatives.
"If our farmers, who on average have 5 hectares of land, can earn Rp 4 million per hectare, they could make up to Rp 20 million per month. If this is achieved, there will be no more poverty here," he said optimistically, as quoted by InfoSAWIT from BerauPost on Thursday (9/11/2025).
Sinar Mas Kaltim Region, which operates through PT Kresna Duta Agroindo and PT Tapian Nadenggan, currently manages a total area of 42,742 hectares. Of this, 25,158 hectares are core plantations, while 17,710 hectares are managed through plasma and independent smallholder partnerships.
Sinar Mas Region Controller, Hendra Oldy Charli Mapasa, explained that the company has partnered with seven plasma cooperatives, covering 6,888 hectares of land with 3,215 farmers. In addition, there are 17 independent smallholder cooperatives with 10,822 hectares of land, involving over 5,000 farmers.
"This partnership is delivering tangible results. Plasma farmers can earn around Rp 3 million per hectare per month, while independent farmers can reach Rp 4 million. Each month, the circulation of money in local financial institutions surpasses Rp 100 billion, not including transactions in local markets and small shops," Hendra detailed.
This fact shows that the palm oil industry not only serves as a primary driver of exports but also as an engine for the local economy. The monthly circulation of billions of rupiah strengthens people's purchasing power, creates jobs, and improves farmers' well-being.
Governor Harum's visit was also attended by Member of Parliament Hj. Sarifah Suraidah Harum, East Kalimantan Regional Secretary Sri Wahyuni, members of the East Kalimantan Regional House of Representatives, leaders of the provincial government's regional apparatus, and the management of PT Sinar Mas Kaltim Region. Their presence serves as proof of the synergy between the government, companies, and communities in driving development based on oil palm agribusiness. (T2)
