InfoSAWIT, KUBU RAYA – The opening of the 5th Indonesian Palm Oil Smallholder Conference (IPOSC) in Kubu Raya Regency, West Kalimantan, on Wednesday (9/23/2025), attended by InfoSAWIT, marked an important moment for palm oil smallholders from all over Indonesia. Representing the Governor of West Kalimantan, the Head of the West Kalimantan Livestock and Plantation Office, Heronimus Hero, affirmed the strategic role of the plantation sub-sector, especially palm oil, in supporting both the national and regional economies.

"The plantation sub-sector, particularly palm oil, is very dominant in West Kalimantan's economy. More than 20% of the province's regional GDP is supported by the agricultural sector, with palm oil as the main commodity. About one million farmers in West Kalimantan depend on palm oil for their livelihoods," Hero stated in his speech.

Currently, West Kalimantan has 368 palm oil companies with a total plantation area of 3.9 million hectares. Of this total, about 1.6-1.7 million hectares are already productive. There are still approximately 900,000 hectares with potential for new investment, provided it complies with applicable regulations.

Furthermore, Hero emphasized the importance of maintaining a balance between economic development and sustainability regulations. "Investments must proceed according to the rules. We must not let only negative information about palm oil surface. It needs to be affirmed that palm oil provides a real contribution, not only to West Kalimantan but also to the national economy," he said.

According to the West Kalimantan Provincial Government's records, palm oil's contribution is not only evident in the plantation sector but also in the processing industry. Of West Kalimantan's total regional GDP, about 32% is directly supported by plantations and their derivative industries. "More than 150,000 people are directly involved, while if we count their families, palm oil's contribution touches almost 40% of West Kalimantan's population," he explained.

On the other hand, Hero also reminded the audience of the major challenges facing the palm oil industry, including strict regulations from global markets like the European Union. Therefore, this 5th IPOSC meeting is expected to be a forum for farmers, associations, and stakeholders to strengthen their commitment to sustainable palm oil.

"Our palm oil industry must adapt to sustainability demands. Dialogues like this are important so that farmers are not disadvantaged and remain a part of the global supply chain," Hero concluded. (T2)