InfoSAWIT, NUSA DUA – The Acting Director General of Plantations at the Ministry of Agriculture, Abdul Roni Angkat, affirmed the government's commitment to strengthening the national palm oil industry by boosting productivity, accelerating the Smallholder Replanting Program (PSR), and prioritizing downstreaming that benefits farmers.
Roni noted that the palm oil sector remains the backbone of Indonesia's agricultural exports, contributing US$ 19.6 billion in export value in 2024. The industry also employs over 4.2 million direct and 12 million indirect workers.
Roni admitted that the realization of the PSR program is still a major challenge, with only about 19% of the national target achieved by 2025. This low realization is partly due to farmers' concerns about complicated audits and bureaucracy.
To address this, the Ministry of Agriculture is collaborating with the Palm Oil Plantation Fund Management Agency (BPDP) and law enforcement to provide security and certainty for PSR participants. The Ministry is also preparing a special application for transparency and opening cooperation with BULOG to support farmers during the replanting period with fast-harvest commodities like upland rice and corn.
Downstreaming and Energy Self-Sufficiency 2045
Abdul Roni stated that the President and Minister of Agriculture's directives focus on two major goals: increasing state foreign exchange earnings and reducing poverty through plantation downstreaming.
"We are preparing the direction for palm oil development until 2045 with a production target of 100 million tons," he revealed.
This scheme includes an additional planting area of about 3 million hectares and the acceleration of downstream industry development, such as biodiesel, bio-polyethylene glycol, and cooking oil. Roni also mentioned substantial budget support, totaling up to Rp200 trillion including prepared investments, to achieve palm oil-based energy self-sufficiency by 2045.
He closed by urging all parties to synergize, stating, "We must be winners in our own country. Palm oil is a national asset that must be safeguarded, managed, and developed together sustainably." (T2)
